Envestnet (ENV) 10-K 28 Feb 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 23, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	ENVESTNET, INC.
Entity Central Index Key	1,337,619
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,174,950,058
Entity Common Stock, Shares Outstanding		44,724,801
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 60,115	$ 52,592
Fees and other receivables, net	51,522	44,268
Prepaid expenses and other current assets	19,470	16,224
Total current assets	131,107	113,084
Property and equipment, net	35,909	33,000
Internally developed software, net	22,174	14,860
Intangible assets, net	222,731	265,558
Goodwill	432,955	431,936
Other non-current assets	17,176	13,963
Total assets	862,052	872,401
Current liabilities:
Accrued expenses and other liabilities	105,897	87,763
Accounts payable	11,097	11,480
Current portion of debt		37,926
Contingent consideration	2,115	2,286
Deferred revenue	21,246	16,499
Total current liabilities	140,355	155,954
Convertible Notes	158,990	152,575
Revolving credit facility	81,168
Term Notes		100,409
Contingent consideration	666	2,582
Deferred revenue	12,047	15,643
Deferred rent and lease incentive	15,185	12,060
Deferred tax liabilities, net	969	5,555
Other non-current liabilities	15,102	13,436
Total liabilities	424,482	458,214
Commitments and contingencies
Redeemable units in ERS	900	900
Stockholders’ equity:
Preferred stock, par value $0.005, 50,000,000 shares authorized
Common stock, par value $0.005, 500,000,000 shares authorized; 57,450,056 and 55,642,686 shares issued as of December 31, 2017 and December 31, 2016, respectively; 44,700,641 and 43,240,567 shares outstanding as of December 31, 2017 and December 31, 2016, respectively	287	278
Additional paid-in capital	556,257	516,675
Accumulated deficit	(73,854)	(70,574)
Treasury stock at cost, 12,749,415 and 12,402,119 shares as of December 31, 2017 and December 31, 2016, respectively	(47,042)	(33,068)
Accumulated other comprehensive income (loss)	624	(422)
Total stockholders’ equity	436,272	412,889
Non-controlling interest	398	398
Total equity	436,670	413,287
Total liabilities and equity	$ 862,052	$ 872,401

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.005	$ 0.005
Preferred stock, shares authorized	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	57,450,056	55,642,686
Common stock, shares outstanding	44,700,641	43,240,567
Treasury stock, shares	12,749,415	12,402,119

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Assets under management or administration	$ 410,016	$ 352,498	$ 333,684
Subscription and licensing	245,867	198,125	75,280
Professional services and other	27,796	27,541	11,955
Total revenues	683,679	578,164	420,919
Operating expenses:
Cost of revenues	219,037	180,590	161,309
Compensation and benefits	264,392	241,584	139,756
General and administration	121,010	115,435	72,900
Depreciation and amortization	62,820	63,999	27,962
Total operating expenses	667,259	601,608	401,927
Income (loss) from operations	16,420	(23,444)	18,992
Other income (expense):
Interest income	201	37	338
Interest expense	(16,347)	(16,600)	(10,271)
Other expense, net	(1,963)	(483)	(71)
Total other expense, net	(18,109)	(17,046)	(10,004)
Income (loss) before income tax provision	(1,689)	(40,490)	8,988
Income tax provision	1,591	15,077	4,552
Net income (loss)	(3,280)	(55,567)	4,436
Net income (loss) attributable to Envestnet, Inc	$ (3,280)	$ (55,567)	$ 4,436
Net income (loss) per share attributable to Envestnet, Inc.:
Basic (in dollars per share)	$ (0.08)	$ (1.30)	$ 0.12
Diluted (in dollars per share)	$ (0.08)	$ (1.30)	$ 0.12
Weighted average common shares outstanding:
Basic (in shares)	43,732,148	42,814,222	36,500,843
Diluted (in shares)	43,732,148	42,814,222	38,386,873

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss) attributable to Envestnet, Inc.	$ (3,280)	$ (55,567)	$ 4,436
Other comprehensive income (loss), net of taxes
Foreign currency translation gain (loss)	1,046	(412)	(2)
Gain (loss) on foreign currency contracts designated as cash flow hedges reclassified to earnings		(204)	196
Total other comprehensive income (loss), net of taxes	1,046	(616)	194
Comprehensive income (loss), net of taxes	$ (2,234)	$ (56,183)	$ 4,630

Consolidated Statement of Equit

Consolidated Statement of Equity - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Non-controlling Interest	Total
Balance at Dec. 31, 2014	$ 232	$ (13,242)	$ 233,888		$ (19,443)	$ 556	$ 201,991
Balance (in shares) at Dec. 31, 2014	46,345,376	(11,800,723)
Increase (decrease) in shareholders' equity
Exercise of stock options	$ 5		8,274				8,279
Exercise of stock options (in shares)	1,047,911
Issuance of common stock - vesting of restricted stock units	$ 2						2
Issuance of common stock - vesting of restricted stock units (in shares)	434,292
Acquisition of businesses	$ 31		195,420				195,451
Acquisition of businesses (in shares)	6,097,836
Acquisition of business - attribution of the fair market value of replacement award			4,318				4,318
Stock-based compensation expense			15,161				15,161
Excess tax benefit from stock-based compensation expense			17,607				17,607
Purchase of treasury stock for stock-based tax withholdings		$ (7,412)					(7,412)
Purchase of treasury stock for stock-based tax withholdings (in shares)		(145,566)
Purchase of ERS units			58			(158)	(100)
Foreign currency translation gain (loss)				$ (2)			(2)
Loss on foreign currency contracts designated as cash flow hedges reclassified to earnings				196			196
Net loss (income)					4,436		4,436
Balance at Dec. 31, 2015	$ 270	$ (20,654)	474,726	194	(15,007)	398	439,927
Balance (in shares) at Dec. 31, 2015	53,925,415	(11,946,289)
Increase (decrease) in shareholders' equity
Exercise of stock options	$ 2		4,922				4,924
Exercise of stock options (in shares)	598,382
Issuance of common stock - vesting of restricted stock units	$ 6						6
Issuance of common stock - vesting of restricted stock units (in shares)	1,118,889
Stock-based compensation expense			32,572				32,572
Excess tax benefit from stock-based compensation expense			4,455				4,455
Purchase of treasury stock for stock-based tax withholdings		$ (10,966)					(10,966)
Purchase of treasury stock for stock-based tax withholdings (in shares)		(412,220)
Common stock shares repurchased		$ (1,448)					$ (1,448)
Common stock shares repurchased (in shares)		(43,610)					(43,610)
Foreign currency translation gain (loss)				(412)			$ (412)
Loss on foreign currency contracts designated as cash flow hedges reclassified to earnings				(204)			(204)
Net loss (income)					(55,567)		(55,567)
Balance at Dec. 31, 2016	$ 278	$ (33,068)	516,675	(422)	(70,574)	398	413,287
Balance (in shares) at Dec. 31, 2016	55,642,686	(12,402,119)
Increase (decrease) in shareholders' equity
Exercise of stock options	$ 4		7,947				7,951
Exercise of stock options (in shares)	837,857
Issuance of common stock - vesting of restricted stock units	$ 5						5
Issuance of common stock - vesting of restricted stock units (in shares)	969,513
Stock-based compensation expense			31,635				31,635
Purchase of treasury stock for stock-based tax withholdings		$ (13,974)					$ (13,974)
Purchase of treasury stock for stock-based tax withholdings (in shares)		(347,296)
Common stock shares repurchased (in shares)							0
Foreign currency translation gain (loss)				1,046			$ 1,046
Net loss (income)					(3,280)		(3,280)
Balance at Dec. 31, 2017	$ 287	$ (47,042)	$ 556,257	$ 624	$ (73,854)	$ 398	$ 436,670
Balance (in shares) at Dec. 31, 2017	57,450,056	(12,749,415)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
OPERATING ACTIVITIES:
Net income (loss)	$ (3,280)	$ (55,567)	$ 4,436
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	62,820	63,999	27,962
Deferred rent and lease incentive amortization	1,027	(438)	1,819
Provision for doubtful accounts	867	1,122	176
Deferred income taxes	(4,597)	5,584	(10,508)
Stock-based compensation expense	31,331	33,276	15,161
Non-cash interest expense	8,994	8,244	10,271
Accretion on contingent consideration and purchase liability	512	150	888
Fair market value adjustment to contingent consideration		1,588	(4,153)
Loss allocation from equity method investment	1,469	1,420
Impairment of equity method investment		734
Loss on disposal of fixed assets	76	398
Changes in operating assets and liabilities, net of acquisitions:
Fees and other receivables	(8,121)	1,646	(9,297)
Prepaid expenses and other current assets	(787)	(3,290)	14,716
Other non-current assets	(1,690)	(98)	(6,025)
Accrued expenses and other liabilities	16,810	17,174	(13,653)
Accounts payable	(442)	(462)	3,128
Deferred revenue	1,191	2,014	10,906
Other non-current liabilities	2,427	3,776	(3,792)
Net cash provided by operating activities	108,607	81,270	42,035
INVESTING ACTIVITIES:
Purchase of property and equipment	(14,945)	(13,967)	(9,184)
Capitalization of internally developed software	(12,624)	(8,609)	(5,532)
Investment in private companies	(1,450)	(2,238)	(1,500)
Purchase of ERS units		(1,500)	(100)
Acquisition of businesses, net of cash acquired		(31,613)	(328,305)
Net cash used in investing activities	(29,019)	(57,927)	(344,621)
FINANCING ACTIVITIES:
Proceeds from issuance of Term Notes			160,000
Payment of Term Notes	(35,862)	(8,000)	(10,000)
Proceeds from borrowings on revolving credit facility	35,000	40,000	10,000
Payments on revolving credit facility	(62,500)	(40,000)	(10,000)
Debt issuance costs	(94)
Payments of contingent consideration	(2,286)	(3,729)	(7,219)
Payments of definite consideration	(445)
Payments of purchase consideration liabilities	(235)	(3,256)
Issuance of redeemable units in ERS			900
Proceeds from exercise of stock options	7,951	4,924	8,279
Purchase of treasury stock for stock-based tax withholdings	(13,974)	(10,966)	(7,412)
Common stock acquired under the share repurchase program		(1,448)
Issuance of restricted stock units	5	6	2
Net cash used in financing activities	(72,440)	(22,469)	144,550
EFFECT OF EXCHANGE RATE CHANGES ON CASH	375
DECREASE IN CASH AND CASH EQUIVALENTS	7,523	874	(158,036)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	52,592	51,718	209,754
CASH AND CASH EQUIVALENTS, END OF PERIOD	60,115	52,592	51,718
Supplemental disclosure of cash flow information - net cash paid during the period for income taxes	3,261	1,114	1,700
Supplemental disclosure of cash flow information - cash paid during the period for interest	7,353	8,356	3,877
Supplemental disclosure of non-cash operating, investing and financing activities:
Non-cash debt issuance costs	2,230
Leasehold improvements funded by lease incentive	2,098	1,522	330
Purchase of fixed assets included in accounts payable and accrued expenses and other liabilities	1,286	1,136
Purchase liabilities included in accrued expenses and other liabilities	$ 856	996	13,676
Contingent consideration issued in a business acquisitions		$ 4,868	1,500
Common stock issued in business acquisitions			195,451
Attribution of the fair market value of replacement awards			$ 4,318

Organization and Description of

Organization and Description of Business	12 Months Ended
	Dec. 31, 2017
Organization and Description of Business
Organization and Description of Business	1. Organization and Description of Busines Envestnet, Inc. (“Envestnet”) and its subsidiaries (collectively, the “Company”) provide intelligent systems for wealth management and financial wellness. Envestnet’s unified technology enhances advisor productivity and strengthens the wealth management process. Through a combination of platform enhancements, partnerships and acquisitions, Envestnet empowers enterprises and advisors to more fully understand their clients and deliver better outcomes. The Company offers these solutions principally through the following product and services suites: · Envestnet | Enterprise provides an end-to-end open architecture wealth management platform, through which advisors can construct portfolios for clients. It begins with aggregated household data which then leads to a financial plan, asset allocation, investment strategy, portfolio management, rebalancing and performance reporting. Advisors have access to over 18,000 investment products. Envestnet | Enterprise also sells data aggregation and reporting, data analytics, and digital advice capabilities to customers. · Envestnet | Tamarac TM provides leading trading, rebalancing, portfolio accounting, performance reporting and CRM software, principally to high‑end registered investment advisers (“RIAs”). · Envestnet | Retirement Solutions (“ ERS ”) offers a comprehensive suite of services for advisor-sold retirement plans. Leveraging integrated technology, ERS addresses the regulatory, data, and investment needs of retirement plans and delivers the information holistically. · Envestnet | PMC ® , or Portfolio Management Consultants (“ PMC ”) provides research, due diligence and consulting services to assist advisors in creating investment solutions for their clients. These solutions include more than 4,000 vetted managed account products, multi-manager portfolios, fund strategist portfolios, as well as proprietary products, such as quantitative portfolios. PMC also offers an overlay service, which includes patented portfolio overlay and tax optimization services. · Envestnet | Yodlee ™ is a leading data aggregation and data analytics platform powering dynamic, cloud- based innovation for digital financial services. Envestnet operates three RIAs and a registered broker-dealer. The RIAs are registered with the U.S. Securities and Exchange Commission (“SEC”). The broker-dealer is registered with the SEC, all 50 states and the District of Columbia and is a member of the Financial Industry Regulatory Authority (“FINRA”).

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The Company follows accounting standards established by the Financial Accounting Standards Board (“FASB”) to ensure consistent reporting of financial condition, results of operations and cash flows. References to Generally Accepted Accounting Principles (“GAAP”) in these footnotes are to the FASB Accounting Standards Codification TM , sometimes referred to as the codification or ASC. Principles of Consolidation —The consolidated financial statements include the accounts of Envestnet and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Management Estimates —Management of the Company has made certain estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with GAAP. Areas requiring the use of management estimates relate to estimating uncollectible receivables, revenue recognition, valuations and assumptions used for impairment testing of goodwill, intangible and other long-lived assets, fair value of restricted stock and stock options issued, fair value of contingent consideration, realization of deferred tax assets, uncertain tax positions, sales tax liabilities, fair value of the liability portion of the convertible debt and assumptions used to allocate purchase prices in business combinations. Actual results could differ materially from these estimates under different assumptions or conditions. Revenue Recognition— The Company recognizes revenue from services related to asset management and administration, licensing and professional services fees. The Company recognizes revenue when all of the following conditions are satisfied: (i) there is persuasive evidence of an arrangement, (ii) the service or product has been provided to the customer and no uncertainties exist surrounding product acceptances (iii) the amount of fees to be paid by the customer is fixed or determinable; and (iv) the collection of fees is reasonably assured. · Asset management and administration fees — The Company derives revenues from fees charged as a percentage of the assets that are managed or administered on its technology platform by financial advisors, financial institutions, and their clients (collectively “customers”) and for services the Company provides to its customers. Such services include investment manager due diligence and research, portfolio diagnostics, proposal generation, investment model management, rebalancing and trading, portfolio performance reporting and monitoring solutions, billing, and back office and middle-office operations and administration. Investment decisions for assets under management or administration are made by our customers. The asset management and administration fees the Company earns are generally based upon a contractual percentage of assets managed or administered on our platform based on preceding quarter-end values. The contractual fee percentages vary based on the level and type of services the Company provides to its customers. Fees related to assets under management or administration increase or decrease based on values of existing customer accounts. The values are affected by inflows or outflows of customer funds and market fluctuations. · Subscription and licensing — Subscription— Subscription revenue is primarily derived from customers accessing the SaaS technology platform and includes subscription, support, and usage-based fees. Subscription revenue is recognized ratably over the contracted term of each respective subscription agreement, commencing on the date the service is provisioned to the customer, provided the four revenue recognition criteria have been satisfied. Usage-based revenue is recognized as earned, provided the four revenue recognition criteria have been satisfied. Licensing— The Company derives licensing fees from recurring contractual fixed fee contracts with larger financial institutions or enterprise clients. Licensing contracts allow the customer to provide a unique configuration of platform features and investment solutions for their advisors. The licensing fees vary based on the type of services provided and our revenues received under license agreements are recognized over the contractual term. The Company’s license agreements do not generally provide its customers the ability to take possession of the software or host the software on the customers’ own systems or through a hosting arrangement with an unrelated party. · Professional services and other — The Company derives professional services fees from providing contractual customized service platform software development as well as implementation fees, which are recognized under a proportional performance model utilizing an output-based approach or are deferred and amortized over the estimated life of the customer relationship. The Company’s contracts generally have fixed prices, and generally specify or quantify deliverables. Cash received by the Company in advance of the performance of services is deferred and recognized as revenue when earned. Certain portions of the Company’s revenues require management’s consideration of the nature of the client relationship in determining whether to recognize as revenue the gross amount billed or net amount retained after payments are made to providers for certain services related to the product or service offering. The Company uses the following factors to determine whether to record revenue on a gross or net basis: · the Company has a direct contract with the third party service provider; · the Company has discretion in establishing fees paid by the customer and fees due to the third party service provider; and · the Company has credit risk. When customer fees include charges for third party service providers where the Company has a direct contract with such third party service providers, gross revenue recognized by the Company equals the fee paid by the customer. The cost of revenues recognized by the Company is the amount due to the third party service provider. In instances where the Company does not have a direct contract with the third party service provider, the Company cannot exercise discretion in establishing fees paid by the customer and fees due to the third party service provider, and the Company does not have credit risk, the Company records the revenue on a net basis. Multiple Element Arrangements —When the Company enters into arrangements with multiple deliverables, exclusive of arrangements with software deliverables, it applies the FASB’s guidance for revenue arrangements with multiple deliverables and evaluates each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (i) whether the delivered item has value to the customer on a stand-alone basis, and (ii) if the contract includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. Revenue is allocated to each unit of accounting or element based on relative selling prices. The Company determines relative selling prices by using either (a) vendor-specific objective evidence (“VSOE”) if it exists; or (b) third-party evidence (“TPE”) of selling price. When neither VSOE nor TPE of selling price exists for a deliverable, the Company uses its best estimate of the selling price for that deliverable. After determining which deliverables represent a separate unit of accounting, each unit is then accounted for under the applicable revenue recognition guidance. In cases where elements cannot be treated as separate units of accounting, the elements are combined into a single unit of accounting for revenue recognition purposes. If one of the elements that are combined into a single unit of accounting is fees from professional services, including implementation related services or customized service platform software development, the professional service fees are recognized over the course of the expected customer relationship. We have estimated the life of the customer relationship by considering both the historical retention rate of our customers while not exceeding the number of years over which we can accurately forecast future revenues. We currently estimate this term to be five years. For revenues that are subject to sales and use tax and that were billed to customers, the Company records the tax net within the corresponding revenue category in the consolidated statements of operations. Deferred Revenue— Deferred revenue primarily consists of implementation and set up fees, professional services, and license fee payments received in advance from customers. For subscription agreements, the Company typically invoices its customers in monthly or annual fixed installments. Accordingly, the deferred revenue balance does not represent the total contract value of these multi-year subscription agreements. Deferred revenue also includes certain deferred professional services fees, which are recognized in accordance with the Company’s revenue recognition policy. Cost of Revenues— Cost of revenues primarily includes expenses related to third party investment management and clearing, custody and brokerage services. Generally, these expenses are calculated based upon a contractual percentage of the market value of assets held in customer accounts measured as of the end of each quarter and are recognized ratably throughout the quarter based on the number of days in the quarter. Allowance for Doubtful Accounts— The Company evaluates the need for an allowance for doubtful accounts for potentially uncollectible fees receivable. In establishing the amount of the allowance, if any, customer-specific information is considered related to delinquent accounts, including historical loss experience and current economic conditions. As of December 31, 2017, 2016 and 2015, the Company’s allowance for doubtful accounts was $407, $242 and $221, respectively. Cash and Cash Equivalents— The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. Investments— The Company has an investment that is recorded at cost and reviewed for impairment. Investments are included in “Other non-current assets” on the consolidated balance sheets and consist of non-marketable investments in privately held companies. The Company reviews these investments on a regular basis to evaluate the carrying amount and economic viability of these investments. This policy includes, but is not limited to, reviewing each of the investee’s cash position, financing needs, earnings/revenue outlook, operational performance, management/ownership changes and competition. The evaluation process is based on information that the Company requests from these investees. This information is not subject to the same disclosure regulations as U.S. publicly traded companies, and as such, the basis for these evaluations is subject to the timing and accuracy of the data received from these investees. The Company has investments in which it uses the equity method of accounting to record its portion of investments in these privately held companies’ net income or loss on a one quarter lag from the actual results of operations. The Company uses the equity method of accounting because of its less than 50 percent ownership and lack of control. The Company’s interest in the earnings or losses of the privately held companies will be reflected in other expense, net on the consolidated statements of operations. The Company’s investments are assessed for impairment when a review of the investee’s operations indicates that there is a decline in value of the investment and the decline is other than temporary. Such indicators include, but are not limited to, limited capital resources, limited prospects of receiving additional financing, and prospects for liquidity of the related securities. Impaired investments are written down to estimated fair value. The Company estimates fair value using a variety of valuation methodologies, including comparing the investee with publicly traded companies in similar lines of business, applying valuation multiples to estimated future operating results and estimated discounted future cash flows. There were $0, $734 and $0 in impairments to investments during the years ended December 31, 2017, 2016 and 2015, respectively. See “Note 9 Other Non-Current Assets.” Property and Equipment— Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of furniture and equipment is computed using the straight-line method based on estimated useful lives of the depreciable assets. Leasehold improvements are amortized on a straight-line basis over their estimated economic useful lives or the remaining lease term, whichever is shorter. Improvements are capitalized, while repairs and maintenance costs are charged to operations as incurred. Assets are reviewed for recoverability whenever events or circumstances indicate the carrying value may not be recoverable. Internally Developed Software for Internal Use— Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs are expensed as incurred. Internally developed software is amortized on a straight-line basis over its estimated useful life. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments of internally developed software for internal use during the years ended December 31, 2017, 2016 and 2015. Goodwill and Intangible Assets— Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Goodwill is reviewed for impairment each year using a qualitative or quantitative process that is performed at least annually or whenever events or circumstances indicate that impairment may have occurred. The Company performs the annual impairment analysis on October 31 in order to provide management time to complete the analysis prior to year-end. The Company has concluded that it has two reporting units. Prior to performing the quantitative evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. If it is determined that it is unlikely that the carrying value exceeds the fair value, the Company is not required to complete the quantitative goodwill impairment evaluation. If it is determined that the carrying value may exceed fair value when considering qualitative factors, a quantitative goodwill impairment evaluation is performed. When performing the quantitative evaluation, if the carrying value of the reporting unit exceeds its fair value, an impairment loss equal to the difference will be recorded. No goodwill impairment charges have been recorded for the years ended December 31, 2017, 2016 and 2015. Intangible assets are recorded at cost less accumulated amortization. Intangible assets are reviewed for impairment whenever events or changes in circumstances may affect the recoverability of the net assets. Such reviews include an analysis of current results and take into consideration the undiscounted value of projected operating cash flows. No intangible asset impairment charges have been recorded for the years ended December 31, 2017, 2016 and 2015. Operating Leases— In certain circumstances, the Company enters into leases with free rent periods, rent escalations or lease incentives over the term of the lease. In such cases, the Company calculates the total payments over the term of the lease and records them ratably as rent expense over that term. Income Taxes— The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount that is more likely than not to be realized. The Company follows authoritative guidance related to how uncertain tax positions should be recognized, measured, disclosed and presented in the consolidated financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained “when challenged” or “when examined” by the applicable tax authority. The tax benefits recognized in the consolidated financial statements from tax positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Non-income Tax Liabilities —Certain of the Company’s revenues are subject to sales and use taxes in certain jurisdictions where it conducts business in the United States. During 2017 and 2016, the Company estimated that a sales and use tax liability of $8,522 and $10,108, respectively, was probable related to multiple taxing jurisdictions with respect to revenues in the years ended December 31, 2017 and December 31, 2016, and prior years. This amount is included in accrued expenses and other liabilities on the consolidated balance sheets. For the same periods, the Company also estimated a sales and use tax receivable of $2,704 and $3,879, respectively, related to estimated recoverability of amounts due from customers. This amount is included in prepaid expenses and other current assets on the consolidated balance sheets. For the year ended December 31, 2017 and 2016, we recognized net sales and use tax expense of $345 and $6,229, including interest of approximately $244 and $914, respectively. The sales and use tax adjustment was recorded in general and administration on the consolidated statements of operations. Additional future information obtained from the applicable jurisdictions may affect the Company’s estimate of its sales and use tax liability. Business Combinations— The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. The Company determines the fair value of contingent acquisition consideration payable on the acquisition date using a discounted cash flow approach utilizing an appropriate discount rate. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to fair market value adjustment on contingent consideration in the Company’s consolidated statements of operations. Changes in the fair value of the contingent acquisition consideration payable can result from adjustments to the estimated revenue forecasts included in the contingent payment calculations. Stock-Based Compensation— Compensation cost relating to stock-based awards made to employees and directors is recognized in the consolidated financial statements using the Black-Scholes option-pricing model in the case of non-qualified stock option awards, and intrinsic value in the case of restricted stock awards. The Company measures the cost of such awards based on the estimated fair value of the award measured at the grant date and recognizes the expense on a straight-line basis over the requisite service period, which is the vesting period. Determining the fair value of stock options requires the Company to make several estimates, including the volatility of its stock price, the expected life of the option, forfeiture rate, dividend yield and interest rates. The Company estimates the expected life of its options using historical internal forfeiture data. The Company estimates stock-price volatility using historical third-party quotes of Envestnet’s common stock. The Company utilizes a risk-free interest rate, which is based on the yield of U.S. zero coupon securities with a maturity equal to the expected life of the options. The Company has not and does not expect to pay dividends on its common shares. The Company is required to estimate expected forfeitures of stock-based awards at the grant date and recognize compensation cost only for those awards expected to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Therefore, changes in the forfeiture assumptions may impact the total amount of expense ultimately recognized over the vesting period. Estimated forfeitures will be reassessed in subsequent periods and may change based on new facts and circumstances. Convertible Notes —On December 15, 2014, the Company issued $172,500 of 1.75% convertible notes due December 2019 (the “Convertible Notes”). The Convertible Notes are accounted for in accordance with ASC 470-20. The Company has determined that the embedded conversion options in the Convertible Notes are not required to be separately accounted for as a derivative under GAAP. The Company separately accounts for the liability and equity components of Convertible Notes that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option, or equity component, in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes the accretion of the resulting discount using the effective interest method as part of interest expense in its consolidated statements of operations. Non-controlling Interest —Effective February 1, 2014, the Company formed ERS with various third parties. ERS offers advisory and technology enabled services to financial advisors and retirement plans. In exchange for a 64.5% ownership interest in ERS, the Company contributed certain assets and has agreed to fund a certain amount of the operating expenses of ERS. As described in “Note 3 – Business Acquisitions,” primarily due to the issuance of units related to the contributions of FinaConnect, Inc. (“FinaConnect”) and Castle Rock Innovations, Inc. (“Castle Rock”) and the purchase of additional ERS units acquired from the former owners of Klein Decisions, Inc. (“Klein”), the Company’s ownership in ERS increased to 80.8% as of December 31, 2016. During the year ended December 31, 2017, the Company purchased an additional 15 units, which increased the Company’s ownership percentage to 81.5% as of December 31, 2017. The allocation of gains and losses to the members of ERS is based on a hypothetical liquidation book value method in accordance with the ERS operating agreement. There were no losses for the years ended December 31, 2017, 2016 and 2015, reflected as non-controlling interest in the consolidated statements of operations. Recent Accounting Pronouncements —In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers,” which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. In August 2015, the FASB issued ASU 2015-14 to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company will adopt the standard in its first quarter of 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial adoption. The standard also allows entities to apply certain practical expedients at their discretion. The Company will adopt the standard using the modified retrospective approach with a cumulative catch up adjustment and will provide additional disclosures comparing results to previous GAAP in our 2018 consolidated financial statements. We plan to apply the new revenue standard only to contracts not completed as of the date of initial application, referred to as open contracts. The Company has substantially completed the implementation of key systems changes and changes to internal controls over financial reporting to allow the Company to timely compile the information needed to account for transactions under this new guidance. In adopting ASU 2014-09, the Company expects the following significant changes: i) Timing of revenue recognition for initial implementation services. Under ASU 2014-09, the Company will recognize professional services revenue from the initial implementation services over the remaining contractual term of the arrangement. Previously, this revenue was recognized on a straight line basis over the estimated life of the customer relationship; and ii) Deferral of incremental direct costs to obtaining a contract with a customer. Under ASU 2014-09, the Company will capitalize certain variable compensation (i.e., short term incentive compensation) payable to its sales force and subsequently amortize the capitalized costs over a period of time that is consistent with the transfer of the related good or service to the customer, which the Company has determined to be five years. Capitalized costs, net of accumulated amortization, will be included in other non-current assets on the Company’s consolidated balance sheets. Previously, the Company elected to expense these incremental direct costs as incurred. The Company currently estimates the adoption of ASU 2014-09 will decrease its 2018 beginning accumulated deficit balance by approximately $9,000, offset by an approximate $4,000 decrease in deferred revenues and an approximate $5,000 increase in other non-current assets. Additionally, while we are still in the process of assessing the statement of operations classification impact, under ASU 2014-09, for a subset of third party manager agreements, the existing presentation of gross versus net revenue may change. In February 2016, the FASB issued ASU 2016-02, “Leases”. This update amends the requirements for assets and liabilities recognized for all leases longer than twelve months. Lessees will be required to recognize a lease liability measured on a discounted basis, which is the lessee’s obligation to make lease payments arising from the lease, and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This standard will be effective for financial statements issued by public companies for the annual and interim periods beginning after December 15, 2018. Early adoption of the standard is permitted. The Company is currently evaluating the potential impact of this guidance on our consolidated financial statements. In March 2016, The FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”. This update is intended to reduce the cost and complexity of accounting for share-based payments; however, some changes may also increase volatility in reported earnings. Under the new guidance, all excess tax benefits and deficiencies will be recorded as an income tax benefit or expense in the income statement and excess tax benefits will be recorded as an operating activity in the statements of cash flows. The new guidance also allows withholding up to the maximum individual statutory tax rate without classifying the awards as a liability. The cash paid to satisfy the statutory income tax withholding obligation will be classified as a financing activity in the statements of cash flows. Lastly, the update allows forfeitures to be estimated or recognized when they occur. The requirements for the excess tax effects related to share-based payments at settlement must be applied on a prospective basis, and the other requirements under this standard are to be applied on a retrospective basis. This standard will be effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2016. These changes became effective for the Company’s fiscal year beginning January 1, 2017 and have been reflected in these consolidated financial statements. As a result of the retrospective adoption of ASU 2016-09, for the year ended December 31, 2016 and 2015, net cash provided by operating activities increased by $4,455 and $17,607, respectively, with a corresponding offset to net cash used in financing activities. The Company did not elect an accounting policy change to record forfeitures as they occur and will continue to estimate forfeitures at each period. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments,” which clarifies eight specific cash flow issues in an effort to reduce diversity in practice in how certain transactions are classified within the statements of cash flows. This ASU is effective for the Company January 1, 2018 with early adoption permitted. Upon adoption, the ASU requires a retrospective application unless it is determined that it is impractical to do so for which it must be retrospectively applied at the earliest date practical. We will adopt the standard effective January 1, 2018. Upon adoption, the Company does not anticipate significant changes to the Company's existing accounting policies or presentation of the consolidated statements of cash flows. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350),” which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units’ fair value. This standard will be effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company has adopted this standard as of April 1, 2017, however it did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (Topic 805), which provides a new fram

Business Acquisitions

Business Acquisitions	12 Months Ended
	Dec. 31, 2017
Business Acquisitions
Business Acquisitions	3. Business Acquisitions The following acquisitions are included within the Envestnet segment, except for Yodlee and Wheelhouse, which comprise the Envestnet | Yodlee segment. Upside Holdings, Inc. On February 24, 2015, Envestnet, Inc. (the “Company”) acquired all of the stock of Upside Holdings, Inc. (including its subsidiaries “Upside”) for consideration totaling $2,641. Upside is a technology company that was previously registered as an Internet Investment Adviser under Rule 203A-2(f) of the Investment Advisers Act of 1940 (“Advisers Act”). Upside helps financial advisors compete against other digital advisors, or “robo advisors,” by leveraging technology and algorithms to advise, manage, and serve clients who want personalized investment services. The Company acquired Upside to integrate its technology within the Company’s unified wealth management platform, which will allow advisors to compete more aggressively to engage their clients online and reach a new class of investors. The goodwill arising from the acquisition represents the advantage of this integrated technology, the expected synergistic benefits of the transaction and the knowledge and experience of the workforce in place. The goodwill is not deductible for income tax purposes. The estimated consideration transferred in the acquisition as of the acquisition date was as follows: Cash consideration $ 2,040 Purchase consideration liability 615 Cash acquired (14) Total $ 2,641 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ 88 Total liabilities assumed (404) Identifiable intangible assets 1,450 Goodwill 1,507 Total net assets acquired $ 2,641 The estimated useful life and amortization method of the intangible asset acquired is as follows: Estimated Amortization Amount Useful Life in Years Method Proprietary technology $ 1,450 4 Straight-line The results of Upside’s operations are included in the consolidated statements of operations beginning February 24, 2015, and are not material to the Company’s results of operations. Oltis Software LLC On May 6, 2015, the Company acquired all of the issued and outstanding membership interests of Oltis Software LLC (d/b/a Finance Logix ® ), an Arizona limited liability company (“Finance Logix”). Finance Logix provides financial planning and wealth management software solutions to banks, broker-dealers and RIAs. The Company paid upfront consideration of $20,595 in cash, purchase consideration liability of $3,000, 123,410 in shares of Envestnet common stock with a fair value of $6,388 and 123,410 stock options to acquire Envestnet common stock at $52.67 per share with an estimated fair value of $2,542. The Company acquired Finance Logix to integrate its technology within the Company’s unified wealth management platform, which will allow advisors to offer financial planning that flows seamlessly into portfolio construction and ongoing management on a single platform. Finance Logix allows the Company to deliver that capability and increase the breadth of our platform and the functionality gap between our platform and competing platforms. The goodwill arising from the acquisition represents cross-selling opportunities, the expected synergistic benefits of the transaction and the knowledge and experience of the workforce in place. The goodwill is deductible for income tax purposes. The estimated consideration transferred in the acquisition as of the acquisition date was as follows: Cash consideration $ 20,595 Stock and stock option consideration 8,930 Purchase consideration liability 3,000 Cash acquired (909) Total $ 31,616 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ 952 Total liabilities assumed (2,628) Identifiable intangible assets 9,800 Goodwill 23,492 Total net assets acquired $ 31,616 A summary of intangible assets acquired, estimated useful lives and amortization method is as follows: Estimated Amortization Amount Useful Life in Years Method Customer list $ 8,300 Accelerated Proprietary technology 1,000 Straight-line Trade names and domains 500 Straight-line Total $ 9,800 The results of Finance Logix’s operations are included in the consolidated statements of operations beginning May 6, 2015. Finance Logix’s revenues for the period ended December 31, 2015 totaled $1,892. Finance Logix’s net loss for the period ended December 31, 2015 totaled $999. The net loss for the period ended December 31, 2015 includes acquired intangible asset amortization of $974. For the periods ended December 31, 2017, 2016 and 2015, acquisition related costs for Finance Logix totaled $145, $548 and $465, respectively, and are included in general and administration expenses. Castle Rock Innovations, Inc. On August 30, 2015, the Company acquired all of the outstanding shares of stock of Castle Rock Innovations, Inc., a Delaware corporation (“Castle Rock”). Castle Rock provides data aggregation and plan benchmark solutions to retirement plan record-keepers, broker-dealers, and advisors. The Company combined the acquired Castle Rock assets with ERS on December 1, 2016. Castle Rock’s AXIS Retirement Plan Analytics Platform enables retirement plan fiduciaries to comply with 408(b)(2) and 404a-5 regulatory fee disclosure reporting requirements. The AXIS platform offers a single web-based interface and data repository to service the reporting needs of all types of retirement plans, and can be integrated with all record-keeping systems. AXIS also includes features for editing and generating reports for filings, reporting plan expenses, and comparing retirement plans and participants to those of their peers by industry, company size, and other characteristics. The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction and the knowledge and experience of the workforce in place. The goodwill is not deductible for income tax purposes. The estimated consideration transferred in the acquisition as of the acquisition date was as follows: Cash consideration $ 6,190 Contingent consideration liability 1,500 Cash acquired (320) Total $ 7,370 In connection with the acquisition of Castle Rock, the Company is required to pay contingent consideration of 40% of the first annual post-closing period revenues minus $100, 35% of the second annual post-closing period revenue minus $100 and 30% of the third annual post-closing period revenue minus $100. On December 1, 2016, the Company and Castle Rock amended the stock purchase agreement to fix the remaining post-closing period payments. The first post-closing payment was made during October 2016 in the amount of $805. The second post-closing period payment of $445 was paid in January 2017 and the third post-closing payment of $1,250 was paid in January 2018. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ 255 Total liabilities assumed (1,366) Identifiable intangible assets 3,900 Goodwill 4,581 Total net assets acquired $ 7,370 A summary of intangible assets acquired, estimated useful lives and amortization method is as follows: Estimated Amortization Amount Useful Life in Years Method Customer list $ 3,000 Accelerated Proprietary technology 800 Straight-line Trade names and domains 100 Straight-line Total $ 3,900 The results of Castle Rock’s operations are included in the consolidated statements of operations beginning September 1, 2015. Castle Rock’s revenues and net income for the period ended December 31, 2015 totaled $1,011 and $109, respectively. The net income includes acquired intangible asset amortization of $178. On September 1, 2015, ERS accepted the subscription of certain former owners of Castle Rock (the “Castle Rock Parties”) to purchase a 6.5% ownership interest of ERS for $900. The Castle Rock Parties have the right to require ERS to repurchase units issued pursuant to the subscription in approximately 36 months after September 1, 2015 for the amount of $900. This purchase obligation is guaranteed by the Company and is reflected outside of permanent equity in the consolidated balance sheets. Yodlee, Inc. On November 19, 2015, pursuant to the Agreement and Plan of Merger (the “Merger Agreement”), dated August 10, 2015, among Yodlee, the Company and Yale Merger Corp. (“Merger Sub”), a wholly owned subsidiary of Envestnet, Merger Sub was merged (the “Merger”) with and into Yodlee with Yodlee continuing as a wholly owned subsidiary of Envestnet. Yodlee, operating as Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. The Company acquired Yodlee to enhance the Company’s wealth management solutions with a deeply integrated data aggregation capability, expand the Company’s addressable market by delivering the Company’s wealth management solutions to Yodlee’s clients and partners, and benefit from the revenue potential resulting from Yodlee’s fast growing data analytics solutions. Under the terms of the Merger Agreement, Yodlee stockholders received $11.51 in cash and 0.1889 of a share of Envestnet common stock per Yodlee share. Based upon the volume weighted average price per share of Envestnet common stock for the ten consecutive trading days ending on (and including) November 17, 2015, the second trading day immediately prior to completion of the Merger, Yodlee stockholders received total consideration with a value of $17.49 per share. Net cash consideration totaled approximately $375,658 and the Company issued approximately 5,974,000 shares of Envestnet common stock to Yodlee stockholders in the Merger. Holders of 577,829 shares of Yodlee common stock have exercised their statutory appraisal rights under Delaware law. As of December 31, 2015, the Company recognized a liability in the amount of $10,061, which represented $17.49 in cash for each share of Yodlee common stock held by them. Although the Company believed the fair value of these shares did not exceed the consideration paid in the Acquisition, nevertheless, during the first quarter of 2016, the Company settled the appraisal claim in order to avoid the costs, uncertainties, disruptions and distraction of potential litigation. The difference between the liability as of December 31, 2015 and the settlement amount resulted in an increase to goodwill and total consideration paid. The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to an increase in future revenues as a result of potential cross selling opportunities and new lines of business, as well as lower future operating expenses. The goodwill is also related to the knowledge and experience of the workforce in place. The goodwill is not deductible for income tax purposes. The estimated consideration transferred in the acquisition was as follows: Cash consideration $ 375,658 Stock consideration 186,522 Attribution of the fair market value of replacement awards 4,318 Cash acquired (63,234) Total $ 503,264 In connection with the Yodlee merger, the Company issued 1,052,000 shares of Envestnet restricted stock awards (“replacement awards”) issued in connection with unvested Yodlee employee equity awards. The Yodlee unvested stock options and unvested restricted stock units were canceled and exchanged for the replacement awards. See “Note 16 – Stock-Based Compensation” for additional information related to the replacement awards. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed: Accounts receivable $ 16,882 Prepaid expenses and other current assets 3,507 Property and equipment, net 13,800 Other non-current assets 1,959 Identifiable intangible assets 244,000 Goodwill 282,429 Total assets acquired 562,577 Accounts payable (2,424) Accrued expenses (28,173) Capital lease obligations (1,527) FIN 48 liability (5,450) Deferred tax liability (16,693) Deferred revenue (4,100) Other long term liabilities (946) Total liabilities assumed (59,313) Total net assets acquired $ 503,264 As part of the final acquisition accounting, management assigned $24,613 of the total acquired goodwill of $282,429 to the Envestnet segment given the expected benefit to that segment related to the synergies resulting from the combination. A summary of intangible assets acquired, estimated useful lives and amortization method is as follows: Estimated Amortization Amount Useful Life in Years Method Customer list $ 177,000 15 Accelerated Backlog 11,000 4 Accelerated Proprietary technology Straight-line Trade names Straight-line Total $ The results of Envestnet | Yodlee’s operations are included in the consolidated statements of operations beginning November 20, 2015. Envestnet | Yodlee’s revenues and net loss for the period ended December 31, 2015 totaled $14,081 and $5,963, respectively. The net loss includes acquired intangible asset amortization of $3,953. For the periods ended December 31, 2017, 2016 and 2015, acquisition related costs for Yodlee totaled $1,289, $2,186 and $6,624, respectively, and are included in general and administration expenses. FinaConnect, Inc. On February 1, 2016 Envestnet acquired all of the outstanding shares of capital stock of FinaConnect, Inc. (“FinaConnect”). FinaConnect is a software as a service (SaaS) platform that provides reporting and practice management capabilities to financial professionals servicing the retirement plan market and is the technology platform supporting the ERS service offering. FinaConnect is included in the Envestnet segment. On May 1, 2016, the Company combined the assets of FinaConnect with ERS. In addition to adding the client list serviced directly by FinaConnect, the goodwill arising from the acquisition represents the advantage of ownership of the technology powering the ERS solution, removal of ongoing licensing payments made to FinaConnect and the full integration of the knowledge and experience of the FinaConnect workforce. The goodwill is deductible for income tax purposes. In connection with the acquisition of FinaConnect, the Company paid upfront cash consideration of $6,425 and Company is required to pay contingent consideration of four times the incremental revenue on a certain book of business for the next two years, not to exceed a total amount of $3,500. As of December 31, 2016, the estimated fair market value of contingent consideration liability for FinaConnect increased from $1,929 to $2,286. As a result, the Company recorded a fair market value adjustment of $357 which is recognized in general and administration in the consolidated statements of operations. During 2017, the Company paid contingent consideration in the amount of $2,286 for the first year earnout and estimated the second year earnout to be $0 as of December 31, 2017. The estimated consideration transferred in the acquisition as of the acquisition date was as follows: Cash consideration $ 6,425 Contingent consideration liability 1,929 Working capital adjustment 269 Cash acquired (1) Total $ 8,622 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ 430 Total liabilities assumed (400) Identifiable intangible assets 3,800 Goodwill 4,792 Total net assets acquired $ 8,622 A summary of intangible assets acquired, estimated useful lives and amortization methods are as follows: Estimated Amortization Amount Useful Life in Years Method Customer list $ 2,800 12 Accelerated Proprietary technology 900 5 Straight-line Trade names and domains 100 2 Straight-line Total $ 3,800 The results of FinaConnect’s operations are included in the consolidated statements of operations beginning February 1, 2016, and are not considered material to the Company’s results of operations. For the periods ended December 31, 2017 and 2016, acquisition related costs for FinaConnect totaled $135 and $116, respectively, and are included in general and administration in the consolidated statements of operations. Wheelhouse Analytics LLC On October 3, 2016, the Company acquired all of the issued and outstanding membership interests of Wheelhouse Analytics LLC (“Wheelhouse”). Wheelhouse is a technology company that provides data analytics, mobile sales solutions, and online education tools to financial advisors, asset managers and enterprises. Wheelhouse is included in the Envestnet | Yodlee segment. The Company acquired Wheelhouse to be integrated with Yodlee’s industry-leading data and analytics solutions to strengthen Envestnet’s data-driven insights to financial advisors, asset managers and enterprises enabling them to better manage their businesses and client relationships and deliver better outcomes to their clients. Envestnet expects to deeply integrate Wheelhouse’s tools, delivering robust online dashboards and reporting that provides actionable intelligence. In connection with the acquisition of Wheelhouse, the Company paid cash consideration of $13,299 and is required to pay contingent consideration with the aggregate amount not to exceed $4,000 and certain holdbacks upon release. Changes to the estimated fair value of the contingent consideration, if any, will be recognized in earnings of the Company. The consideration transferred in the acquisition was as follows: Cash consideration $ 13,299 Contingent consideration liability 2,364 Purchase consideration liability 887 Working capital adjustment 110 Cash acquired (80) Total $ 16,580 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ 385 Total liabilities assumed (1,420) Identifiable intangible assets 6,600 Goodwill 11,015 Total net assets acquired $ 16,580 A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Estimated Amortization Amount Useful Life in Years Method Customer list $ 4,000 15 Accelerated Proprietary technology 2,500 6 Straight-line Trade names and domains 100 2 Straight-line Total $ 6,600 The results of Wheelhouse’s operations are included in the consolidated statements of operations beginning October 3, 2016, and are not considered material to the Company’s results of operations. For the periods ended December 31, 2017 and 2016, acquisition related costs for Wheelhouse totaled $874 and $383, respectively, and are included in general and administration in the consolidated statements of operations. Unaudited pro forma results for Envestnet, Inc. giving effect to recent acquisitions The results of the FinaConnect and Wheelhouse acquisitions were not considered material to the Company’s results of operations and as such no unaudited pro forma financial information is presented for the years ended December 31, 2017 and December 31, 2016.

Cost of Revenues

Cost of Revenues	12 Months Ended
	Dec. 31, 2017
Cost of Revenues
Cost of Revenues	4. Cost of Revenues The following summarizes cost of revenues by revenue category for the years ended December 31, 2017, 2016 and 2015: 2017 2016 2015 Assets under management or administration $ 194,894 $ 160,842 $ 152,573 Subscription and licensing 19,818 16,113 7,785 Professional services and other 4,325 3,635 951 Total $ 219,037 $ 180,590 $ 161,309

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Dec. 31, 2017
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets	5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: At December 31, 2017 2016 Non-income tax receivable $ $ 3,879 FinaConnect escrow 429 Prepaid technology 1,318 Income tax receivable 1,864 Prepaid rent 882 Prepaid insurance 552 Other 7,300 $ $

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2017
Property and Equipment
Property and Equipment, Net	6. Property and Equipment Property and equipment consists of the following: At December 31, Estimated Useful Life 2017 2016 Cost: Computer equipment and software 3 years $ 56,192 $ 52,921 Leasehold improvements Shorter of the lease term or useful life of the asset 23,192 17,286 Office furniture and fixtures 3-7 years 8,110 6,911 Other office equipment 3-5 years 2,052 1,367 89,546 78,485 Less: accumulated depreciation and amortization (53,637) (45,485) Property and equipment, net $ 35,909 $ 33,000 During 2017 and 2016, the Company retired property and equipment that were no longer in service in the amount of $7,712 and $8,123, respectively. Substantially all assets retired originated in the Envestnet segment. The following table presents the cost amounts and related accumulated depreciation written off by category: Year Ended December 31, 2017 Year Ended December 31, 2016 Accumulated Accumulated Cost Depreciation Cost Depreciation Computer equipment and software $ 7,528 $ (7,523) $ 6,593 $ (6,498) Office furniture and fixtures 184 (113) 225 (206) Other office equipment — — 1,175 (916) Leasehold improvements — — 130 (105) Total property and equipment retirements $ 7,712 $ (7,636) $ 8,123 $ (7,725) During 2016, the Company recorded an increase in the cost of acquired Yodlee property and equipment related to a purchase accounting fair market value adjustment in the amount of $3,922. Depreciation and amortization expense was as follows: Year Ended December 31, 2017 2016 2015 Depreciation and amortization expense $ 15,383 $ 14,838 $ 7,668

Internally Developed Software

Internally Developed Software	12 Months Ended
	Dec. 31, 2017
Internally Developed Software.
Internally Developed Software	7. Internally Developed Software Internally developed software consists of the following: At December 31, Estimated Useful Life 2017 2016 Internally developed software 5 years $ 46,342 $ 33,718 Less: accumulated amortization (24,168) (18,858) Internally developed software, net $ 22,174 $ 14,860 Amortization expense was as follows: Year Ended December 31, 2017 2016 2015 Amortization expense $ 5,310 $ 3,646 $ 2,658

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	8. Goodwill and Intangible Assets Changes in the carrying amount of goodwill were as follows: Envestnet Envestnet | Yodlee Total Balance at December 31, 2015 $ 135,224 $ 286,049 $ 421,273 FinaConnect acquisition 4,792 — 4,792 Wheelhouse acquisition — 10,558 10,558 Purchase accounting adjustments - Yodlee 24,613 (28,233) (3,620) Purchase accounting adjustments - Castle Rock (388) — (388) Other (490) (189) (679) Balance at December 31, 2016 Purchase accounting adjustments - Wheelhouse — 457 457 Foreign currency translation — 562 Balance at December 31, 2017 $ $ $ Intangible assets consist of the following: December 31, 2017 December 31, 2016 Gross Net Gross Net Estimated Carrying Accumulated Carrying Carrying Accumulated Carrying Useful Life Amount Amortization Amount Amount Amortization Amount Customer lists 7 - 15 years $ 259,350 $ (78,482) $ 180,868 $ 259,490 $ (54,861) $ 204,629 Proprietary technologies 4 - 8 years 57,377 (31,067) 26,310 57,770 (20,214) 37,556 Trade names 1 - 7 years 24,840 (9,701) 15,139 25,007 (6,178) 18,829 Backlog 4 years 11,000 (10,586) 414 11,000 (6,456) 4,544 Total intangible assets $ 352,567 $ (129,836) $ 222,731 $ 353,267 $ (87,709) $ 265,558 During 2016, the Company wrote off fully amortized intangible assets, specifically customer lists, in the amount of $4,159. The Company did not write off any intangible assets in 2017. Amortization expense was as follows: Year Ended December 31, 2017 2016 2015 Amortization expense $ $ 45,515 $ 17,636 Future amortization expense of the intangible assets as of December 31, 2017, is expected to be as follows: Years ending December 31: 2018 $ 35,807 2019 31,288 2020 2021 2022 Thereafter 87,639 $ 222,731

Other Non-Current Assets

Other Non-Current Assets	12 Months Ended
	Dec. 31, 2017
Other Non-Current Assets.
Other Non-Current Assets	9. Other Non-Current Assets Other non-current assets consist of the following: At December 31, 2017 2016 Assets to fund deferred compensation liability $ 5,185 $ 2,738 Deposits: Lease 4,291 4,262 Other 615 2,083 Unamortized issuance costs on revolving credit facility 3,106 — Investments in private companies 2,731 2,750 Other 1,248 2,130 $ 17,176 $ 13,963 The Company owns 756,347 Class B Units in a privately held company at a historical purchase price of $1,250. The Company uses the cost method of accounting for this investment. In April 2015, the Company purchased 150,000 Class B units representing 10.3% of the outstanding membership interests of a privately held company for cash consideration of $1,500. In July 2016, the Company purchased an additional 738,463 Class B units of the outstanding membership interests of a privately held company for cash consideration of $738 bringing its total of the outstanding membership interests to 16.2%. The Company uses the equity method of accounting to record its portion of the privately held company’s net income or loss on a one quarter lag from its actual results of operations. The Company uses the equity method of accounting because of its less than 50 percent ownership and lack of control. The Company’s share in the loss of the privately held company was $1,420 and $84 during the years ended December 31, 2016 and 2015, respectively. In December 2016, the Company determined that its investment in this privately held company was other than temporarily impaired. Therefore, the Company reduced the carrying value of its investment to zero and recorded an impairment loss of $734, which was recorded in other expense, net on the consolidated statements of operations for the year ended December 31, 2016. In November 2016, the Company purchased 1,500,000 Class A units representing 21.4% of the outstanding membership interests of a privately held company for cash consideration of $1,500 which is included in investments in private companies. In September 2017, the Company purchased an additional 1,450,000 Class A units in this privately held company for cash consideration of $1,450. The additional investment increased the Company’s ownership interest to 34.5%. The Company uses the equity method of accounting to record its portion of this privately held company’s net income or loss on a one quarter lag from the actual results of operations. The Company uses the equity method of accounting because of its less than 50 percent ownership and lack of control. The Company’s share in the loss of the privately held company was $1,4 69 during the year ended December 31, 2017 and is included in other expense, net on the consolidated statements of operations.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2017
Fair Value Measurements
Fair Value Measurements	10. Fair Value Measurements The Company follows ASC 825-10, Financial Instruments, which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect of the company’s choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. The Company has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. Financial assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon a fair value hierarchy established by U.S. GAAP, which prioritizes the inputs used to measure fair value into the following levels: Level I: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. Level II: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or inputs that are observable and can be corroborated by observable market data. Level III:: Inputs reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. Fair Value on a Recurring Basis: The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value in the condensed consolidated balance sheets as of December 31, 2017 and 2016, based on the three-tier fair value hierarchy . December 31, 2017 Fair Value Level I Level II Level III Assets Money market funds(1) $ $ $ — $ — Assets to fund deferred compensation liability(2) — — Total assets $ $ $ — $ Liabilities Contingent consideration $ $ — $ — $ Deferred compensation liability(3) — — Total liabilities $ $ $ — $ December 31, 2016 Fair Value Level I Level II Level III Assets Money market funds(1) $ $ $ — $ — Assets to fund deferred compensation liability(2) — — Total assets $ $ $ — $ Liabilities Contingent consideration $ $ — $ — $ Deferred compensation liability(3) — — Total liabilities $ $ $ — $ (1) The fair values of the Company’s investments in money-market funds are based on the daily quoted market prices for the net asset value of the various money market funds. (2) The deferred compensation asset fair value is based upon the cash surrender value of the life insurance premiums. The Company recognized immaterial gains related to this asset within the statements of operations for the year ended December 31, 2017. (3) The deferred compensation liability is included in other non-current liabilities in the consolidated balance sheets and its fair market value is based on the daily quoted market prices for the net asset value of the various funds in which the participants have selected. Level I assets and liabilities include money-market funds not insured by the FDIC, deferred compensation liability and the revolving credit facility. The Company periodically invests excess cash in money-market funds not insured by the FDIC. The Company believes that the investments in money market funds are on deposit with creditworthy financial institutions and that the funds are highly liquid. These money-market funds are considered Level 1 and are included in cash and cash equivalents in the consolidated balance sheets. The fair value of the deferred compensation liability is based upon the daily quoted market prices for net asset value on the various funds selected by participants. The outstanding balance on the revolving credit facility approximated fair value as the revolving credit facility bore interest at variable rates and we believe our credit risk quality was consistent with when the debt originated. Level II liabilities consist of Convertible Notes and Term Notes in which the Company uses observable market prices to determine the fair value. The outstanding value of our Term Notes approximated fair value as the Term Notes bore interest at variable rates and we believe our credit risk quality was consistent with when the debt originated through July 18, 2017, at which time the Second Amended and Restated Credit Facility replaced the Term Notes with the revolving credit facility. Level III liabilities consist of the estimated fair value of contingent consideration as well as the deferred compensation asset. The fair market value of the deferred compensation asset is based upon the cash surrender value of the life insurance premiums. The fair value of the contingent consideration liabilities related to the FinaConnect and Wheelhouse acquisitions were estimated using a discounted cash flow method with significant inputs that are not observable in the market and thus represents a Level III fair value measurement as defined in ASC 820, Fair Value Measurements and Disclosures . The significant inputs in the Level III measurement not supported by market activity included our assessments of expected future cash flows related to our acquisitions of FinaConnect and Wheelhouse during the subsequent periods from the date of acquisition, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the agreement. The Company utilized a discounted cash flow method with expected future performance of FinaConnect and Wheelhouse, and their ability to meet the target performance objectives as the main driver of the valuation, to arrive at the fair values of their respective contingent consideration. The Company will continue to reassess the fair value of the contingent consideration for each acquisition at each reporting date until settlement. Changes to the estimated fair values of the contingent consideration will be recognized in earnings of the Company and included in general and administration on the consolidated statements of operations. The table below presents a reconciliation of contingent consideration liabilities of which the Company measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2016 to December 31, 2017: Fair Value of Contingent Consideration Liabilities Balance at December 31, 2016 $ Settlement of contingent consideration liability Contingent consideration adjustment Accretion on contingent consideration 417 Balance at December 31, 2017 $ 2,781 The table below presents a reconciliation of the assets to fund deferred compensation liability of which the Company measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2016 to December 31, 2017: Fair Value of Assets to Fund Deferred Compensation Liability Balance at December 31, 2016 $ Contributions and fair value adjustments Balance at December 31, 2017 $ 5,185 The asset value was increased due to funding of the plan as well as immaterial gains on the underlying investment vehicles, which resulted in an asset value of $5,185 as of December 31, 2017, which was included in other non-current assets on the condensed consolidated balance sheets. The Company assesses categorization of assets and liabilities by level at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer, in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. There were no transfers between Levels I, II and III during the year. On December 15, 2014, the Company issued $172,500 of Convertible Notes. As of December 31, 2017 and 2016, the carrying value of the 2019 Convertible Notes equaled $158,990 and $152,575, respectively, and represents the aggregate principal amount outstanding less the unamortized discount and debt issuance costs. As of December 31, 2017 and 2016, the fair value of the Convertible Notes was $180,180 and $164,824, respectively. The Company considers the Convertible Notes to be a Level II liability as of December 31, 2017 and 2016, and uses a market approach to calculate the fair value of the Convertible Notes. The estimated fair value was determined based on the estimated or actual bids and offers of the Convertible Notes in an over-the-counter market on or near December 31, 2017 (see “Note 12 – Debt”). As of December 31, 2017 and 2016, there was $0 and $142,000, respectively, of Term Notes outstanding. The July 18, 2017 amendment to the Prior Credit Facility replaced the Term Notes and related excess cash flow payment obligations with a revolving line of credit. As of December 31, 2016, the outstanding value of our Term Notes approximated fair value as the Term Notes bore interest at variable rates and we believed our credit risk quality was consistent with when the debt originated. As of December 31, 2016, the carrying value of the Term Notes equaled $138,335, and represents the aggregate principal amount outstanding less the unamortized debt issuance costs. The Company considered the Term Notes to be a Level II liability as of December 31, 2016 (see “Note 12 – Debt”). As of December 31, 2017 and 2016, there was $81,168 and $0, respectively, outstanding on the revolving credit facility under the Second Amended and Restated Credit Agreement. As of December 31, 2017 and 2016, the outstanding balance on our revolving credit facility approximated fair value as the revolving credit facility bore interest at variable rates and we believed our credit risk quality was consistent with when the debt originated. The Company considered the revolving credit facility to be a Level I liability as of December 31, 2017 and 2016 (see “Note 12 – Debt”). We consider the recorded value of our other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities at December 31, 2017 based upon the short-term nature of the assets and liabilities.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	12 Months Ended
	Dec. 31, 2017
Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities	11. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following: At December 31, 2017 2016 Accrued compensation and related taxes $ 43,724 $ 35,287 Accrued investment manager fees 39,324 31,278 Sales and use tax payable 9,037 10,108 Accrued professional services 4,985 3,213 Definite consideration 1,250 445 Other accrued expenses 7,577 7,432 $ 105,897 $ 87,763

Debt

Debt	12 Months Ended
	Dec. 31, 2017
Debt
Debt	12. Debt The Company’s outstanding debt obligations as of December 31, 2017 and 2016 were as follows: At December 31, 2017 2016 Convertible Notes $ 172,500 $ 172,500 Unaccreted discount on Convertible Notes (11,677) (17,149) Unamortized issuance costs on Convertible Notes (1,833) (2,776) Convertible Notes carrying value $ 158,990 $ 152,575 Term Notes $ — $ 142,000 Unamortized issuance costs on Term Notes — (3,665) Term Notes carrying value $ — $ 138,335 Revolving credit facility balance $ 81,168 $ — Credit Agreement On June 19, 2014, Envestnet and certain of its subsidiaries entered into a credit agreement with a group of banks (the “Banks”), for which Bank of Montreal is acting as administrative agent, pursuant to which the Banks agreed to provide an unsecured revolving credit facility of $70,000 with a sublimit for the issuance of letters of credit of $5,000. Since then the agreement has been amended several times and was last amended and restated on July 18, 2017. On July 18, 2017, the Company and certain of its subsidiaries entered into a Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”) with a group of banks (the “Banks”), for which Bank of Montreal acted as administrative agent (the “Administrative Agent”). The Second Amended and Restated Credit Agreement amends and restates the Amended and Restated Credit Agreement, dated as of November 19, 2015, as amended, among the Company, the guarantors party thereto, the lenders party thereto and Bank of Montreal, as administrative agent (the “Prior Credit Facility”). Pursuant to the Second Amended and Restated Credit Agreement, the Banks agreed to provide to the Company revolving credit commitments (the “Revolving Credit Facility”) in the aggregate amount of up to $350,000 which amount may be increased by $50,000. The Second Amended and Restated Credit Agreement also includes a $5,000 subfacility for the issuance of letters of credit. Obligations under the Second Amended and Restated Credit Agreement are guaranteed by substantially all of Envestnet’s U.S. subsidiaries, including Yodlee. In accordance with the terms of the Security Agreement, dated November 19, 2015 (the “Security Agreement”), among the Company, the Debtors party thereto, the Banks and the Administrative Agent, obligations under the Second Amended and Restated Credit Agreement are secured by substantially all of the Company’s domestic assets and the Company’s pledge of 66% of the voting equity and 100% of the non-voting equity of certain of its first-tier foreign subsidiaries. In addition to funding a portion of the cash consideration paid by the Company in connection with the acquisition of Yodlee, proceeds under the Second Amended and Restated Credit Agreement may be used to finance capital expenditures, working capital, permitted acquisitions and for general corporate purposes. Envestnet will pay interest on borrowings made under the Second Amended and Restated Credit Agreement at rates between 1.50 percent and 3.25 percent above LIBOR based on the Company’s total leverage ratio. Borrowings under the Second Amended and Restated Credit Agreement are scheduled to mature on July 18, 2022. There is also a commitment fee equal to 0.25 percent per annum on the daily unused portion of the facility. The Second Amended and Restated Credit Agreement contains customary conditions, representations and warranties, affirmative and negative covenants and events of default. The covenants include certain financial covenants requiring Envestnet to maintain compliance with a maximum senior leverage ratio, a maximum total leverage ratio, a minimum interest coverage ratio and minimum adjusted EBITDA, and provisions that limit the ability of Envestnet and its subsidiaries to incur debt, make investments, sell assets, create liens, engage in transactions with affiliates, engage in mergers and acquisitions, pay dividends and other restricted payments, grant negative pledges and change their business activities. As of December 31, 2017, there were $0 of Term Notes and $81,168 of revolving credit amounts outstanding under the Second Amended and Restated Credit Agreement . The July 18, 2017 amendment replaced the Term Notes and related excess cash flow payment obligations, which were issued in relation to a previous amendment, with a revolving line of credit. The Company’s consolidated balance sheets reflect these changes as of December 31, 2017 with no portion of debt related to the revolving credit facility being classified as short-term. As of December 31, 2017, the debt issuance costs related to the Second Amended and Restated Credit Agreement and the Prior Credit Facility are presented in prepaid expenses and other non-current assets which have outstanding amounts of $855 and $3,106, respectively. The Company was in compliance with all covenants of the Second Amended and Restated Credit Agreement as of December 31, 2017. Convertible Notes On December 15, 2014, the Company issued $172,500 of Convertible Notes. Net proceeds from the offering were $166,967. The Convertible Notes bear interest at a rate of 1.75 percent per annum payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2015. In connection with the issuance of the Convertible Notes, the Company incurred $4,651 of issuance costs in 2014, which are presented net in non-current debt on the consolidated balance sheets. These costs are being amortized and are recorded as additional interest expense over the life of the Convertible Notes. The Convertible Notes are general unsecured obligations, subordinated in right of payment to our obligations under our Credit Agreement. The Convertible Notes rank equally in right of payment with all of the Company’s existing and future senior indebtedness and will be senior in right of payment to any of the Company’s future subordinated indebtedness. The Convertible Notes will be structurally subordinated to the indebtedness and other liabilities of any of our subsidiaries, other than to the extent the Convertible Notes are guaranteed in the future by our subsidiaries as described in the indenture and will be effectively subordinated to and future secured indebtedness to the extent of the value of the assets securing such indebtedness. Certain of our subsidiaries guarantee our obligations under our Credit Agreement. Upon the occurrence of a “fundamental change”, as defined in the indenture, the holders may require the Company to repurchase all or a portion of the Convertible Notes for cash at 100% of the principal amount of the Convertible Notes being purchased, plus any accrued and unpaid interest. The Convertible Notes are convertible into shares of the Company’s common stock under certain circumstances prior to maturity at a conversion rate of 15.9022 shares per $1,000 principal amount of the Convertible Notes, which represents a conversion price of $62.88 per share, subject to adjustment under certain conditions. Holders may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding July 1, 2019, only under the following circumstances: (a) during any calendar quarter commencing after the calendar quarter ending on March 31, 2015 (and only during such calendar quarter), if the last reported sale price of our common stock, for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs, is more than 130% of the conversion price of the Convertible Notes in effect on each applicable trading day; (b) during the five consecutive business-day period following any five consecutive trading-day period in which the trading price per $1,000 principal amount of the Convertible Notes for each such trading day was less than 98% of the last reported sale price of our common stock on such date multiplied by the then-current conversion rate; or (c) upon the occurrence of specified corporate events as defined in the indenture. Upon conversion, the Company may pay cash, shares of the Company’s common stock or a combination of cash and stock, as determined by the Company in its discretion. The Company’s stated policy is to settle the debt component of the Convertible Notes at least partially or wholly in cash. This policy is based both on the Company’s intent and the Company’s ability to settle these instruments in cash. The Company has separately accounted for the liability and equity components of the Convertible Notes by allocating the proceeds from issuance of the Convertible Notes between the liability component and the embedded conversion option, or equity component. This allocation was done by first estimating an interest rate at the time of issuance for similar notes that do not include the embedded conversion option. The Company allocated $26,618 to the equity component, net of offering costs of $882. The Company recorded a discount on the Convertible Notes of $27,500 which will be accreted and recorded as additional interest expense over the life of the Convertible Notes. During 2017, 2016 and 2015, the Company recognized $5,472, $5,237 and $4,932, respectively, in accretion related to the discount. The effective interest rate of the liability component of the Convertible Notes is equal to the stated interest rate plus the accretion of original issue discount. The effective interest rate on the liability component of the Convertible Notes for the years ended December 31, 2017, 2016 and 2015 was approximately 6%. Interest expense on the Convertible Notes and the Second Amended and Restated Credit agreement was comprised of the following: Year Ended December 31, 2017 2016 2015 Coupon interest $ 3,019 $ 3,019 $ 3,019 Amortization of issuance costs 3,279 2,875 1,462 Accretion of debt discount 5,472 5,237 4,932 Interest on credit agreement 4,153 5,128 606 Undrawn and other fees 424 341 252 $ 16,347 $ 16,600 $ 10,271 See “Note 17 – Net Income (Loss) Per Share” for further discussion of the effect of conversion on net income per common share.

Other Non-Current Liabilities

Other Non-Current Liabilities	12 Months Ended
	Dec. 31, 2017
Other Non-Current Liabilities
Other Non-Current Liabilities	13. Other Non-Current Liabilities Other non-current liabilities consist of the following: December 31, December 31, 2017 2016 Uncertain tax positions $ $ Accrued deferred compensation Other Accrued purchase liability — $ 15,102 $ 13,436

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Taxes
Income Taxes	14. Income Taxes Income (loss) before income tax provision was generated in the following jurisdictions: Year Ended December 31, 2017 2016 2015 Domestic $ $ (47,059) $ 7,059 Foreign 6,569 1,929 Total $ $ (40,490) $ 8,988 The components of the income tax provision charged to operations are summarized as follows: Year Ended December 31, 2017 2016 2015 Current: Federal $ $ 3,812 $ 12,731 State 1,172 1,644 Foreign 4,509 685 9,493 15,060 Deferred: Federal (4,439) 5,992 (9,384) State 146 117 (1,288) Foreign (304) (525) 164 (4,597) 5,584 (10,508) Total $ $ 15,077 $ 4,552 Net deferred tax assets (liabilities) consist of the following: At December 31, 2017 2016 Deferred revenue $ $ 6,309 Prepaid expenses and accruals 1,363 Deferred rent and lease incentives 3,940 Net operating loss and tax credit carryforwards 100,471 Property and equipment and intangible assets (90,222) Stock-based compensation expense 10,641 Convertible Notes (6,346) Other (2,101) Total deferred tax assets Less: valuation allowance (32,513) (29,610) Net deferred tax liabilities $ $ (5,555) On December 22, 2017 the Tax Cuts and Jobs Act (“the Act”) was signed into law. The Act significantly changes U.S. income tax law and is the first major overhaul of the federal income tax code in more than 30 years. Key provisions of the Act that may impact the Company include: (i) reduction of the U.S. federal corporate income tax rate from 35% to 21%, (ii) repeal of the Corporate Alternative Minimum Tax (“AMT”) system (iii) replacement of the worldwide taxation system with a territorial tax system which exempts certain foreign operations from U.S. taxation, (iv) further limitation on the deductibility of certain executive compensation, (v) modification of earnings calculations for certain foreign subsidiaries that were previously tax deferred to a one-time tax, (vi) creation of a new minimum tax on certain foreign earnings and a new base erosion anti-abuse tax, (vii) allowance for immediate capital expensing of certain qualified property, (viii) limitation on the deduction for net interest expense incurred by a U.S. corporation, and (ix) modification and/or repeal of a number of other international provisions. The Company recognized the income tax effects of the Act in its 2017 financial statements in accordance with Staff Accounting Bulletin 118 which provides SEC staff guidance for the application of ASC Topic 740. The Company has completed its assessment for the income tax effects of the Act for the following items: · Repeal of the corporate AMT system: Existing AMT credits as of December 31, 2017 will be refunded over the next five years. The Company has determined that it will receive a refund of existing AMT credits equal to $1,330. The valuation allowance previously recorded against these credits has been released for this amount and a tax benefit of $1,330 was recorded as a component of income tax expense from continuing operations. The Company has not completed its assessment for the income tax effects of the Act but has recorded a reasonable estimate of the effects for the items below. The Company anticipates completing the analyses for these estimates by the fourth quarter of 2018, within the one year measurement period for the following items: · One-time tax on deferred foreign earnings: The Company does not believe that the one-time tax on deferred foreign earnings will have a material impact on their tax provision due to the ability to fully offset any tax with foreign tax credits and net operating losses (“NOL”). However, the calculation of earnings and profits through 2017 has been estimated and will be finalized when the tax returns are filed; and · Re-measurement of deferred tax assets and liabilities: Deferred tax assets and liabilities attributable to the U.S. were re-measured from 35% to the reduced tax rate of 21%. The Company recorded a provisional amount of $13,792 for the re-measurement; however, the majority of the change was offset by a change in valuation allowance leaving a benefit of $810 recorded as a component of income tax expense from continuing operations; and · Elimination of executive compensation exemptions: The Act made major changes to the $1,000 limit on deductible compensation paid to certain executive employees. The Act eliminated exemptions for qualified performance based compensation and compensation paid after termination and expanded the number of employees to which the limit applies. The Company does not believe that the elimination of executive compensation exemptions will have a material impact on its deferred tax assets. The Act contains transitional rules, the implementation of which is not entirely clear at this time. The Company is still analyzing related aspects of the Act including the impact of the transitional rules. The provisional assessment above may change when further guidance is released that addresses these rules. The Company has not completed its assessment for the income tax effects of the Act and is unable to calculate a reasonable estimate of such effect for the items below. The Company anticipates completing the analysis for these items by the fourth quarter of 2018, within the one year measurement period: · Changes to international taxation: The Act modifies various aspects of international taxation and the application of these changes to the current foreign tax credit system is unclear. These rules are complex and require further clarity through the issuance of regulations and final technical interpretation. The Company has a deferred tax asset of $2,459 relating to foreign tax credits that carry a full valuation allowance. Depending upon the final interpretation of the new Act, it may be more likely than not that realization of a portion of the credits may occur. The Company has determined that a reasonable estimate cannot be made at this time. Information needed to complete the accounting is as follows: (i) final technical analysis of the new tax law, and (ii) finalization of necessary calculations, including an assessment on how these new provisions will impact the utilization of these credits in the future; and · Sequestration charge on AMT credits: As stated above, the Company expects to receive a refund of existing AMT credits as of December 31, 2017 of $1,330. The refund may or may not be subject to a 6-7% sequestration charge. The application of this charge is unclear at this time. Clarification on the application of this charge is needed to complete the accounting for this item. The valuation allowance for net deferred tax assets as of December 31, 2017 and 2016 was $32,513 and $29,610, respectively. The change in the valuation allowance from 2016 to 2017 was primarily related to the amortization of book intangible assets, which increased the valuation allowance, and the change in the federal tax rate due to the Act, which reduced the value of the ending valuation allowance. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some or all of the deferred tax assets will be realized. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence is the cumulative loss incurred over the three-year period ended December 31, 2017. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation, as of December 31, 2017, a valuation allowance of $32,513 was recorded to offset the portion of deferred tax assets for which the Company is not at more likely than not that they will be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. Prior to December 31, 2017, the Company did not claim permanent reinvestment of our accumulated foreign earnings, and recorded taxes on these earnings. The amount of this estimated liability at December 31, 2016 was approximately $4,500. As of December 31, 2017, the Company changed our position on this matter and has now claimed permanent reinvestment on accumulated earnings of approximately $20,600. The reinvested foreign earnings of the Company will be used to fund future foreign acquisitions, capital expenditures, headcount expansion and other operating expenses. As these earnings will be permanently reinvested in the foreign jurisdictions, deferred taxes will not be recorded. The expected tax provision calculated at the statutory federal rate differs from the actual provision as follows: Year Ended December 31, 2017 2016 2015 Tax provision (benefit), at U.S. federal statutory tax rate $ (573) $ (13,767) $ 3,056 State income tax provision (benefit), net of federal benefit (1,251) (2,053) 247 Effect of stock-based compensation excess tax benefit (11,522) — — Effect of permanent items 1,145 1,773 1,899 Change in valuation allowance 2,151 26,269 841 Effect of change in federal income tax rate 13,792 — — Effect of change in state income tax rate 537 279 283 Uncertain tax positions 3,668 2,024 (859) Research and development credits (2,815) (2,758) (1,914) Change in permanent reinvestment assertion (4,494) — — State net operating loss adjustment, net of valuation allowance impact 836 — — Other 117 3,310 999 Income tax provision $ 1,591 $ 15,077 $ 4,552 At December 31, 2017, the Company had NOL carryforwards, before any uncertain tax position reserves, for federal income tax purposes of $249,653 which are available to offset future federal taxable income, if any, and expire through 2035. In addition, as of December 31, 2017, the Company had NOL carryforwards for state income tax purposes of $143,775 available to reduce future income subject to income taxes. The state NOL carryforwards expire through 2037. In addition, at December 31, 2017, the Company had AMT credit carryforwards of approximately $1,330 for Federal purposes. As a result of tax reform, AMT credits are refundable for any taxable year beginning after 2017 and before 2022 in an amount equal to 50 percent (100 percent in the case of taxable years beginning in 2021) of the excess of the minimum tax credit for the taxable year over the amount of the credit allowable for the year against regular tax liability. Thus, the minimum tax credit was reclassified from a deferred tax asset to an income tax receivable. The Company also had AMT credits of $21 for California, which are available to reduce future California income taxes, if any, over an indefinite period. In addition, the Company had research and development credit carryforwards of approximately $10,430 for federal and $8,103 for California and Illinois, as well as foreign tax credits of $2,459 available to offset federal income tax. A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: Year Ended December 31, 2017 2016 2015 Unrecognized tax benefits balance at beginning of year $ 16,476 $ 14,129 $ 2,092 Additions based on tax positions related to the current year 1,691 1,153 576 Additions based on tax positions related to prior years 145 1,257 — Additions based on tax positions related to acquired entities — — 12,780 Reductions for settlements with taxing authorities related to prior years — — Reductions for lapses of statute of limitations — (63) (199) Unrecognized tax benefits balance at end of year $ 18,312 $ 16,476 $ 14,129 At December 31, 2017, the amount of unrecognized tax benefits that would benefit the Company’s effective tax rate, if recognized, was $18,312. The Company recognizes potential interest and penalties related to unrecognized tax benefits in income tax expense. For the years ended December 31, 2017 and 2016, income tax expense included $1,690 and $880, respectively, of potential interest and penalties related to unrecognized tax benefits. The Company had accrued interest and penalties of $6,018 and $4,328 as of December 31, 2017 and 2016, respectively. The Company files a consolidated federal income tax return and separate tax returns with various states. Additionally, foreign subsidiaries of the Company file tax returns in foreign jurisdictions. The Company was notified by the Internal Revenue Service as of December 18, 2017 that the calendar year 2015 and 2016 federal income tax returns have been have been selected for audit by the Internal Revenue Service. As of the date of this report, no additional taxes had been assessed, as the audit has not yet begun. The Company’s tax returns for the calendar years ended December 31, 2016, 2015, and 2014 remain open to examination by the Internal Revenue Service in their entirety. With respect to state taxing jurisdictions, the Company’s tax returns for calendar years ended December 31, 2012 and forward remain open to examination by various state revenue services. Our Indian subsidiaries are currently under examination by the India Tax Authority for the fiscal years ended March 31, 2005 and forward. Based on the outcome of examinations of our subsidiary or the result of the expiration of statutes of limitations it is reasonably possible that the related unrecognized tax benefits could change from those recorded in the consolidated balance sheets.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity
Stockholders' Equity	15. Stockholders’ Equity On May 6, 2015, in connection with the acquisition of Finance Logix, the Company issued 123,410 in shares of Envestnet common stock with a fair value of $6,388 and 123,410 stock options to acquire Envestnet common stock at $52.67 per share with an estimated fair value of $2,542. On November 19, 2015 in connection with the merger of Yodlee, Envestnet issued approximately 5,974,000 shares of Envestnet common stock with a fair value of $186,522 to Yodlee stockholders in the Merger. On February 25, 2016, the Company announced that its Board of Directors had authorized a share repurchase program under which the Company may repurchase up to 2,000,000 shares of its common stock. The timing and volume of share repurchases will be determined by the Company’s management based on its ongoing assessments of the capital needs of the business, the market price of its common stock and general market conditions. No time limit has been set for the completion of the repurchase program, and the program may be suspended or discontinued at any time. The repurchase program authorizes the Company to purchase its common stock from time to time in the open market (including pursuant to a “Rule 10b5-1 plan”), in block transactions, in privately negotiated transactions, through accelerated stock repurchase programs, through option or other forward transactions or otherwise, all in compliance with applicable laws and other restrictions. For the years ended December 31, 2017 and 2016, the Company purchased 0 and 43,610 shares of the Company’s common stock, respectively. As of both December 31, 2017 and 2016, a maximum of 1,956,390 shares may yet be purchased under this program.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2017
Stock-Based Compensation
Stock-Based Compensation	16. Stock-Based Compensation On December 31, 2004, the Company adopted a stock incentive plan (the “2004 Plan”). The 2004 Plan provided for the grant of options to employees, consultants, and non-employee directors to purchase common stock, which vest over time and have a ten -year contractual term. To satisfy options granted under the 2004 Plan, the Company made common stock available from authorized but unissued shares or shares held in treasury, if any, by the Company. Stock options granted under the 2004 Plan were non-stock options, as defined in the 2004 Plan agreement. Stock options were granted with an exercise price no less than the fair-market-value price of the common stock at the date of the grant. The 2004 Plan has a change in control provision whereby if a change in control occurs and the participant’s awards are not equitably adjusted, such awards shall become fully vested and exercisable and all forfeiture restrictions on such awards shall lapse. Based on the terms of the 2004 Plan, the Company’s initial public offering in 2010 did not trigger the change in control provision and did not result in any modifications to the outstanding equity awards under the 2004 Plan. On June 22, 2010, the Board of Directors approved the 2010 Long-Term Incentive Plan (“2010 Plan”), effective upon the closing of the Company’s initial public offering. The 2010 Plan provides for the grant of options, stock appreciation rights, Full Value Awards (as defined in the 2010 Plan) and cash incentive awards to employees, consultants, and non-employee directors to purchase common stock, which vest over time and have a ten-year contractual term. The maximum number of shares of common stock that may be delivered under the 2010 Plan is equal to the sum of 2,700,000 plus the number of shares of common stock that are subject to outstanding awards under the 2004 Plan which are forfeited, expire or are cancelled after the effective date of the Company’s initial public offering. Stock options and stock appreciation rights are granted with an exercise price no less than the fair-market-value price of the common stock at the date of the grant. On May 13, 2015 and July 13, 2017, the shareholders approved the 2010 Long-Term Incentive Plan as Amended. The amendments increased the number of common shares of the Company reserved for delivery under the 2010 Plan by 2,700,000 shares and 3,525,000 shares, respectively. As a result of the merger between Envestnet and Tamarac, the Company adopted the Envestnet, Inc. Management Incentive Plan for Envestnet | Tamarac Management Employees (the “2012 Plan”). The 2012 Plan provides for the grant of restricted common stock, stock options and the purchase of common stock for certain Envestnet | Tamarac employees. The maximum number of shares of stock which may be issued with respect to awards under the 2012 Plan is 1,023,851. The 2012 Plan provides for the grant of up to 559,551 shares of common stock (“Target Incentive Awards”). The Target Incentive Awards vest based upon Tamarac meeting certain performance conditions and then a subsequent two-year service condition. The Company measured the cost of these awards based on the estimated fair value of the award as of the market closing price on the day before the acquisition closed. The Company is recognizing the estimated expense on a graded-vesting method over a requisite service period of three to five years, which is the estimated vesting period. The Company estimates the expected vesting amount and recognizes compensation expense only for those awards expected to vest. This estimate is reassessed by management each reporting period and may change based upon new facts and circumstances. Changes in the assumptions impact the total amount of expense and are recognized over the vesting period. As of December 31, 2017, all 559,551 shares of restricted stock have vested. As a result of the merger between Envestnet and Yodlee, the Company adopted the Envestnet, Inc. 2015 Acquisition Equity Award Plan (the “2015 Plan”). The 2015 Plan provides for the assumption of all unvested equity awards previously granted pursuant to the Yodlee employees and the conversion of such awards into equity awards of the Company pursuant to the 2015 Plan. No new awards are being made under the 2015 Plan. The maximum number of shares of stock which may be issued with respect to awards under the 2015 Plan is 1,058,807. As of December 31, 2017, the maximum number of options and restricted stock available for future issuance under the Company’s plans is 3,960,729. Employee stock-based compensation expense was as follows: Year Ended December 31, 2017 2016 2015 Stock-based compensation expense $ 31,331 $ 33,276 $ 15,161 Tax effect on stock-based compensation expense (11,906) (13,001) (7,678) Net effect on income $ 19,425 $ 20,275 $ 7,483 Stock Options The following weighted average assumptions were used to value options granted during the periods indicated: At December 31, 2017 2016 2015 Grant date fair value of options $ 14.51 $ 9.56 $ 19.06 Volatility 43.8 % 42.2 % 37.8 % Risk-free interest rate 2.1 % % 1.8 % Dividend yield — % — % — % Expected term (in years) 6.3 The following table summarizes option activity under the Company’s plans: Weighted-Average Weighted- Remaining Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value Outstanding as of December 31, 2014 4,265,337 $ 10.73 4.7 $ 163,830 Granted 358,087 48.38 Exercised (1,047,911) 7.90 Forfeited (41,722) 41.10 Outstanding as of December 31, 2015 3,533,791 15.03 4.7 61,199 Granted 163,864 22.38 Exercised (598,382) 8.23 Forfeited (66,079) 35.08 Outstanding as of December 31, 2016 3,033,194 16.33 4.3 63,264 Granted 75,238 31.70 Exercised (837,857) 9.49 Forfeited (16,010) 37.42 Outstanding as of December 31, 2017 2,254,565 19.23 4.3 69,939 Options exercisable 2,041,660 17.74 3.8 66,291 The aggregate intrinsic values in the table below represent the total pre-tax intrinsic value (the aggregate difference between the fair value of the Company’s common stock on December 31, 2017, 2016 and 2015 of $49.85, $35.25 and $29.85, respectively, and the exercise price of in-the-money options) that would have been received by the option holders had all option holders exercised their options as of that date. Exercise prices of stock options outstanding as of December 31, 2017 range from $7.15 to $55.29. Other information is as follows: Year Ended December 31, 2017 2016 2015 Total intrinsic value of options exercised $ $ $ 37,879 Cash received from exercises of stock options 8,279 At December 31, 2017, there was $1,891 of unrecognized compensation expense related to unvested stock options, which the Company expects to recognize over a weighted-average period of 1.7 years. Restricted Stock Units and Restricted Stock Awards Periodically, the Company grants restricted stock unit awards to employees. Beginning with grants issued in February 2016, restricted stock units awards vest one-third on the first anniversary of the grant date and quarterly thereafter. For grants issued prior to February 2016, restricted stock units awards would vest ratably in three annual tranches from the date of grant. The following is a summary of the activity for unvested restricted stock units and awards granted under the Company’s plans: Weighted- Average Grant Number of Date Fair Value Shares per Share Outstanding as of December 31, 2014 1,098,674 $ Granted 1,508,796 Vested (434,292) Forfeited (19,967) Outstanding as of December 31, 2015 2,153,211 Granted 1,009,661 Vested (1,082,206) Forfeited (185,907) Outstanding as of December 31, 2016 1,894,759 Granted 959,591 32.38 Vested (969,513) 31.51 Forfeited (118,198) 30.11 Outstanding as of December 31, 2017 1,766,639 32.48 At December 31, 2017, there was $42,250 of unrecognized compensation expense related to unvested restricted stock unit awards, which the Company expects to recognize over a weighted-average period of 1.8 years. The Company entered into employment agreements with certain executive officers, three of whom received a total of 205,000 performance-based restricted stock unit awards in May 2016 which vest upon the achievement of certain “Target Performance Measures” as defined in the employment agreements, for the periods ending December 31, 2016, December 31, 2017 and December 31, 2018 and four of whom also received a total of 125,000 restricted stock units awards in August 2016 which vest quarterly thereafter. The Target Performance Measures for the First and Second Performance Periods, as defined in the employment agreements, were achieved as of December 31, 2017. In connection with the Yodlee merger, on November 19, 2015, the Company issued 1,052,000 shares of Envestnet restricted stock unit awards (“replacement awards”) issued in connection with unvested Yodlee employee equity awards. The Yodlee unvested stock options and unvested restricted stock units were canceled and exchanged for the replacement awards. In accordance with ASC 805, these awards are considered to be replacement awards. Exchanges of share options or other share-based payment awards in conjunction with a business combination are modifications of share-based payment awards in accordance with ASC Topic 718. As a result, a portion of the fair-value-based measure of the replacement awards, are included in measuring the consideration transferred in the Yodlee business combination. To determine the portion of the replacement award that is part of consideration transferred to acquire Yodlee, we have measured both the replacement awards granted by Envestnet and the historical Yodlee awards as of November 19, 2015 in accordance with ASC 718. The portion of the fair-value-based measure of the replacement award that is part of the consideration transferred in exchange for the acquisition of Yodlee, equals the portion of the Yodlee award that is attributable to pre-combination service. Envestnet is attributing a portion of the replacement awards to post combination service as these awards require post combination service. The fair value of the rollover consideration was estimated to be $32,836 of which $4,318 was attributable to pre-acquisition services. The remaining fair value of $28,518 is amortizing over the 43 month vesting period subsequent to the acquisition date. As of December 31, 2017, the remaining amount of unrecognized expense totaled $4,719.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	12 Months Ended
	Dec. 31, 2017
Net Income (Loss) Per Share
Net Income (Loss) Per Share	17. Net Income (Loss) Per Share Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants, restricted stock and Convertible Notes using the treasury stock method. The Company accounts for the effect of the Convertible Notes on diluted net income per share using the treasury stock method since they may be settled in cash, shares or a combination thereof at the Company’s option. As a result, the Convertible Notes have no effect on diluted net loss per share until the Company’s stock price exceeds the conversion price of $62.88 per share, or if the trading price of the Convertible Notes meets certain criteria as described in “Note 12 – Debt.” In the period of conversion, the Convertible Notes will have no impact on diluted net income if the Convertible Notes are settled in cash and will have an impact on basic and diluted net income per share if the Convertible Notes are settled in shares upon conversion. The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders: Year Ended December 31, 2017 2016 2015 Basic income (loss) per share calculation: Net income (loss) attributable to Envestnet, Inc. $ $ (55,567) $ 4,436 Basic number of weighted-average shares outstanding 42,814,222 36,500,843 Basic $ $ $ Diluted income (loss) per share calculation: Net income (loss) attributable to Envestnet, Inc. $ $ $ Basic number of weighted-average shares outstanding 43,732,148 Effect of dilutive shares: Options to purchase common stock — — 1,700,248 Unvested restricted stock units — — 185,782 Diluted number of weighted-average shares outstanding 43,732,148 42,814,222 38,386,873 Diluted $ $ $ Securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share are as follows: At December 31, 2017 2016 2015 Options to purchase common stock 2,254,565 3,033,194 297,343 Unvested restricted stock awards and units 1,766,639 1,894,759 210,233 Ungranted unvested restricted stock units related to Upside — — 132,384 Convertible Notes 2,743,321 2,743,321 2,743,321 Total 6,764,525 7,671,274 3,383,281

Major Customers

Major Customers	12 Months Ended
	Dec. 31, 2017
Major Customers
Major Customers	18. Major Customers One customer accounted for 10% or more of consolidated revenues: Year Ended December 31, 2017 2016 2015 Fidelity 17 % 15 % 18 %

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	19. Commitments and Contingencies Leases The Company rents office space under leases that expire at various dates through 2030. Future annual minimum lease commitments under operating leases were as follows: Years ending December 31: 2018 $ 14,104 2019 2020 2021 2022 Thereafter 43,406 Total $ 111,138 Rent expense for all operating leases totaled: Year Ended December 31, 2017 2016 2015 Rent expense $ 18,084 $ $ Purchase Obligations and Indemnifications The Company includes various types of indemnification and guarantee clauses in certain arrangements. These indemnifications and guarantees may include, but are not limited to, infringement claims related to intellectual property, direct or consequential damages and guarantees to certain service providers and service level requirements with certain customers. The type and amount of any potential indemnification or guarantee varies substantially based on the nature of each arrangement. The Company has experienced no previous claims and cannot determine the maximum amount of potential future payments, if any, related to such indemnification and guarantee provisions. The Company believes that it is unlikely it will have to make material payments under these arrangements and therefore has not recorded a contingent liability in the consolidated balance sheets. The Company enters into unconditional purchase obligations arrangements for certain of its services that it receives in the normal course of business. As of December 31, 2017, the Company estimated future minimum unconditional purchase obligations are $27,425. Legal Proceedings The Company is involved in legal proceedings arising in the ordinary course of its business. Legal fees and other costs associated with such actions are expensed as incurred. The Company will record a provision for these claims when it is both probable that a liability has been incurred and the amount of the loss, or a range of the potential loss, can be reasonably estimated. These provisions are reviewed regularly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information or events pertaining to a particular case. Legal proceedings accruals are recorded when and if it is determined that a loss is both probable and reasonably estimable. For legal proceedings matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but if the matter is material, it is subject to disclosures. The Company believes that liabilities associated with any claims, while possible, are not probable, and therefore has not recorded any accrual for any claims as of December 31, 2017. Further, while any possible range of loss cannot be reasonably estimated at this time, the Company does not believe that the outcome of any of these proceedings, individually or in the aggregate, would, if determined adversely to it, have a material adverse effect on its financial condition or business, although an adverse resolution of legal proceedings could have a material adverse effect on Envestnet’s results of operations or cash flow in a particular quarter or year. Contingencies Certain of the Company’s revenues are subject to sales and use taxes in certain jurisdictions where it conducts business in the United States. During 2017 and 2016, the Company estimated that a sales and use tax liability of $8,522 and $10,108, respectively, was probable related to multiple taxing jurisdictions with respect to revenues in the years ended December 31, 2017 and December 31, 2016, and prior years. This amount is included in accrued expenses and other liabilities on the consolidated balance sheets. For the years ended December 31, 2017 and 2016, the Company also estimated a sales and use tax receivable of $2,704 and $3,879, respectively, related to the estimated recoverability of a portion of the liability from customers. This amount is included in prepaid expenses and other current assets on the consolidated balance sheets. Additional future information obtained from the applicable jurisdictions may affect the Company’s estimate of its sales and use tax liability, but such change in the estimate cannot currently be made.

Benefit Plan

Benefit Plan	12 Months Ended
	Dec. 31, 2017
Benefit Plan
Benefit Plan	20. Benefit Plan The Company sponsors a profit sharing and savings plan under Section 401(k) of the Internal Revenue Code, covering substantially all domestic employees. The Company made voluntary employer matching contributions as follows: Year Ended December 31, 2017 2016 2015 Voluntary employer matching contributions $ 4,038 $ $

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2017
Segment Information
Segment Information	21. Segment Information Business segments are generally organized around our business services. Our business segments are: · Envestnet – provides leading 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 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, 2017. The accounting policies of the reportable business segments are the same as those described in “Note 2 – Summary of Significant Accounting Policies.” The following table presents revenue by segment: Year Ended December 31, 2017 2016 2015 Revenue: Envestnet Assets under management or administration $ 410,016 $ 352,498 $ 333,684 Subscription and licensing 106,048 84,340 63,719 Professional services and other 11,841 10,794 9,435 Total Envestnet segment revenues 527,905 447,632 406,838 Envestnet | Yodlee Subscription and licensing 139,819 113,785 11,561 Professional services and other 15,955 16,747 2,520 Total Envestnet | Yodlee segment revenues 155,774 130,532 14,081 Consolidated revenue $ 683,679 $ 578,164 $ 420,919 Fidelity revenue as a percentage of Envestnet segment revenue: No single customer revenue amounts for Envestnet | Yodlee exceeded 10% of the segment revenue total. The following table presents a reconciliation from income from operations by segment to consolidated net income (loss) attributable to Envestnet, Inc.: Year Ended December 31, 2017 2016 2015 Envestnet $ 75,449 $ 41,678 $ 43,278 Envestnet | Yodlee (19,456) (38,547) (2,984) Total segment income from operations 55,993 3,131 40,294 Nonsegment operating expenses (39,573) (26,575) (21,302) Interest expense, net (16,146) (16,563) (9,933) Other expense, net (1,963) (483) (71) Consolidated income (loss) before income tax provision (1,689) (40,490) 8,988 Income tax provision 1,591 15,077 4,552 Consolidated net income (loss) (3,280) (55,567) 4,436 Add: Net income (loss) attributable to non-controlling interest — — — Consolidated net income (loss) attributable to Envestnet, Inc. $ (3,280) $ (55,567) $ 4,436 Segment assets primarily consist of cash, accounts receivable, prepaid expenses and other current assets, property and equipment, net, internally developed software, goodwill, intangible assets, net, deferred tax assets and other non-current assets. A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures by segment follows: At December 31, 2017 2016 Segment assets: Envestnet $ 353,048 $ 341,602 Envestnet | Yodlee 509,004 530,799 Consolidated total assets $ 862,052 $ 872,401 Year Ended December 31, 2017 2016 2015 Segment depreciation and amortization: Envestnet $ 26,223 $ 24,784 $ 23,369 Envestnet | Yodlee 36,597 39,215 4,593 Consolidated depreciation and amortization $ 62,820 $ 63,999 $ 27,962 Year Ended December 31, 2017 2016 2015 Segment capital expenditures: Envestnet $ 22,434 $ 17,120 $ 13,682 Envestnet | Yodlee 5,135 5,456 1,034 Consolidated capital expenditures $ 27,569 $ 22,576 $ 14,716

Geographical Information

Geographical Information	12 Months Ended
	Dec. 31, 2017
Geographical Information
Geographical Information	22. Geographical Information Revenue by geography is based on the billing address of the customer. The following table sets forth revenue by geographic area: Year Ended December 31, 2017 2016 2015 United States $ 617,835 $ 519,998 $ 388,098 International (1) 65,844 58,166 32,821 Total $ 683,679 $ 578,164 $ 420,919 (1) No foreign country accounted for more than 10% of total revenue. The following table sets forth property, plant, and equipment, net by geographic area: At December 31, 2017 2016 United States $ 30,647 $ 28,713 India 4,907 3,596 Other 691 Total $ 35,909 $ 33,000

Net Capital Requirements

Net Capital Requirements	12 Months Ended
	Dec. 31, 2017
Net Capital Requirements
Net Capital Requirements	23. Net Capital Requirements Portfolio Brokerage Services, Inc. (“PBS”) is a broker-dealer subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital (“net capital ratio”), both as defined, shall not exceed 15 to 1. SEC Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2017, the Company had net capital of $1,238, which was $1,138 in excess of its required net capital of $100. At December 31, 2017, the Company’s net capital ratio was .05 to 1. Additionally, PBS is subject to net capital requirements of certain self-regulatory organizations and at December 31, 2017, PBS was in compliance with such requirements.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2017
Subsequent Event.
Subsequent Events	24. Subsequent Events FolioDynamix On January 2, 2018, pursuant to an agreement and plan of merger (the “Merger Agreement”), dated as of September 25, 2017, between the Company, Folio Dynamics Holdings, Inc., a Delaware corporation (“FolioDynamix”), FCD Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“Merger Sub”), and Actua USA Corporation, a Delaware corporation, solely in its capacity as the representative of the stockholders of FolioDynamix, the Company completed the merger of Merger Sub with and into FolioDynamix, with FolioDynamix continuing as the surviving corporation (the “Acquisition”) and a wholly owned subsidiary of the Company. The completion of the Acquisition on January 2, 2018 followed the receipt of all necessary regulatory approvals and third party consents. In connection with the Acquisition, the Company paid $195,000 in cash for all the outstanding shares of FolioDynamix, subject to certain closing and post-closing adjustments. The Company funded the Acquisition price with a combination of cash on the Company’s balance sheet and with borrowings under its revolving credit facility. FolioDynamix provides financial institutions, registered investment advisors, and other wealth management clients with an end-to-end technology solution paired with a suite of advisory tools including model portfolios, research, and overlay management services. The acquisition of FolioDynamix added complementary trading tools as well as commission and brokerage support to the Company’s existing suite of offerings. The acquisition also added one RIA. The Company expects to integrate the technology and operations of FolioDynamix into the Company’s wealth management business, enabling the Company to further leverage its operating scale and data analytics capabilities. Due to the lack of availability of sufficient information, the disclosures in relation to ASC 805 are currently not able to be included.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)	25. Quarterly Financial Data (Unaudited) Quarterly results for the years ended December 31, 2017 and 2016 were as follows: 2017 First Second Third Fourth Total revenues $ 157,786 $ 167,417 $ 175,614 $ 182,862 Income (loss) from operations (3,354) 2,743 4,348 12,683 Net income (loss) attributable to Envestnet, Inc. (13,135) (6,470) (1,320) 17,645 Net income (loss) per share Basic (1) (0.30) (0.15) (0.03) 0.40 Diluted (1) (2) (0.30) (0.15) (0.03) 0.38 2016 First Second Third Fourth Total revenues $ 131,821 $ 141,708 $ 149,155 $ 155,480 Loss from operations (12,760) (6,330) (1,291) (3,063) Net loss attributable to Envestnet, Inc. (10,993) (7,943) (4,057) (32,574) Net loss per share Basic (1) (0.26) (0.19) (0.09) (0.75) Diluted (1) (0.26) (0.19) (0.09) (0.75) (1) Quarterly values may not sum to annual values due to rounding. (2) Quarterly values may not sum to annual values due to differences in quarterly dilution compared to year to date dilution.

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation —The consolidated financial statements include the accounts of Envestnet and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
Management Estimates	Management Estimates —Management of the Company has made certain estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with GAAP. Areas requiring the use of management estimates relate to estimating uncollectible receivables, revenue recognition, valuations and assumptions used for impairment testing of goodwill, intangible and other long-lived assets, fair value of restricted stock and stock options issued, fair value of contingent consideration, realization of deferred tax assets, uncertain tax positions, sales tax liabilities, fair value of the liability portion of the convertible debt and assumptions used to allocate purchase prices in business combinations. Actual results could differ materially from these estimates under different assumptions or conditions.
Revenue Recognition	Revenue Recognition— The Company recognizes revenue from services related to asset management and administration, licensing and professional services fees. The Company recognizes revenue when all of the following conditions are satisfied: (i) there is persuasive evidence of an arrangement, (ii) the service or product has been provided to the customer and no uncertainties exist surrounding product acceptances (iii) the amount of fees to be paid by the customer is fixed or determinable; and (iv) the collection of fees is reasonably assured. · Asset management and administration fees — The Company derives revenues from fees charged as a percentage of the assets that are managed or administered on its technology platform by financial advisors, financial institutions, and their clients (collectively “customers”) and for services the Company provides to its customers. Such services include investment manager due diligence and research, portfolio diagnostics, proposal generation, investment model management, rebalancing and trading, portfolio performance reporting and monitoring solutions, billing, and back office and middle-office operations and administration. Investment decisions for assets under management or administration are made by our customers. The asset management and administration fees the Company earns are generally based upon a contractual percentage of assets managed or administered on our platform based on preceding quarter-end values. The contractual fee percentages vary based on the level and type of services the Company provides to its customers. Fees related to assets under management or administration increase or decrease based on values of existing customer accounts. The values are affected by inflows or outflows of customer funds and market fluctuations. · Subscription and licensing — Subscription— Subscription revenue is primarily derived from customers accessing the SaaS technology platform and includes subscription, support, and usage-based fees. Subscription revenue is recognized ratably over the contracted term of each respective subscription agreement, commencing on the date the service is provisioned to the customer, provided the four revenue recognition criteria have been satisfied. Usage-based revenue is recognized as earned, provided the four revenue recognition criteria have been satisfied. Licensing— The Company derives licensing fees from recurring contractual fixed fee contracts with larger financial institutions or enterprise clients. Licensing contracts allow the customer to provide a unique configuration of platform features and investment solutions for their advisors. The licensing fees vary based on the type of services provided and our revenues received under license agreements are recognized over the contractual term. The Company’s license agreements do not generally provide its customers the ability to take possession of the software or host the software on the customers’ own systems or through a hosting arrangement with an unrelated party. · Professional services and other — The Company derives professional services fees from providing contractual customized service platform software development as well as implementation fees, which are recognized under a proportional performance model utilizing an output-based approach or are deferred and amortized over the estimated life of the customer relationship. The Company’s contracts generally have fixed prices, and generally specify or quantify deliverables. Cash received by the Company in advance of the performance of services is deferred and recognized as revenue when earned. Certain portions of the Company’s revenues require management’s consideration of the nature of the client relationship in determining whether to recognize as revenue the gross amount billed or net amount retained after payments are made to providers for certain services related to the product or service offering. The Company uses the following factors to determine whether to record revenue on a gross or net basis: · the Company has a direct contract with the third party service provider; · the Company has discretion in establishing fees paid by the customer and fees due to the third party service provider; and · the Company has credit risk. When customer fees include charges for third party service providers where the Company has a direct contract with such third party service providers, gross revenue recognized by the Company equals the fee paid by the customer. The cost of revenues recognized by the Company is the amount due to the third party service provider. In instances where the Company does not have a direct contract with the third party service provider, the Company cannot exercise discretion in establishing fees paid by the customer and fees due to the third party service provider, and the Company does not have credit risk, the Company records the revenue on a net basis.
Multiple Element Arrangements	Multiple Element Arrangements —When the Company enters into arrangements with multiple deliverables, exclusive of arrangements with software deliverables, it applies the FASB’s guidance for revenue arrangements with multiple deliverables and evaluates each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (i) whether the delivered item has value to the customer on a stand-alone basis, and (ii) if the contract includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. Revenue is allocated to each unit of accounting or element based on relative selling prices. The Company determines relative selling prices by using either (a) vendor-specific objective evidence (“VSOE”) if it exists; or (b) third-party evidence (“TPE”) of selling price. When neither VSOE nor TPE of selling price exists for a deliverable, the Company uses its best estimate of the selling price for that deliverable. After determining which deliverables represent a separate unit of accounting, each unit is then accounted for under the applicable revenue recognition guidance. In cases where elements cannot be treated as separate units of accounting, the elements are combined into a single unit of accounting for revenue recognition purposes. If one of the elements that are combined into a single unit of accounting is fees from professional services, including implementation related services or customized service platform software development, the professional service fees are recognized over the course of the expected customer relationship. We have estimated the life of the customer relationship by considering both the historical retention rate of our customers while not exceeding the number of years over which we can accurately forecast future revenues. We currently estimate this term to be five years. For revenues that are subject to sales and use tax and that were billed to customers, the Company records the tax net within the corresponding revenue category in the consolidated statements of operations.
Deferred Revenue	Deferred Revenue— Deferred revenue primarily consists of implementation and set up fees, professional services, and license fee payments received in advance from customers. For subscription agreements, the Company typically invoices its customers in monthly or annual fixed installments. Accordingly, the deferred revenue balance does not represent the total contract value of these multi-year subscription agreements. Deferred revenue also includes certain deferred professional services fees, which are recognized in accordance with the Company’s revenue recognition policy.
Cost of Revenues	Cost of Revenues— Cost of revenues primarily includes expenses related to third party investment management and clearing, custody and brokerage services. Generally, these expenses are calculated based upon a contractual percentage of the market value of assets held in customer accounts measured as of the end of each quarter and are recognized ratably throughout the quarter based on the number of days in the quarter.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts— The Company evaluates the need for an allowance for doubtful accounts for potentially uncollectible fees receivable. In establishing the amount of the allowance, if any, customer-specific information is considered related to delinquent accounts, including historical loss experience and current economic conditions. As of December 31, 2017, 2016 and 2015, the Company’s allowance for doubtful accounts was $407, $242 and $221, respectively.
Cash and Cash Equivalents	Cash and Cash Equivalents— The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents.
Investments	Investments— The Company has an investment that is recorded at cost and reviewed for impairment. Investments are included in “Other non-current assets” on the consolidated balance sheets and consist of non-marketable investments in privately held companies. The Company reviews these investments on a regular basis to evaluate the carrying amount and economic viability of these investments. This policy includes, but is not limited to, reviewing each of the investee’s cash position, financing needs, earnings/revenue outlook, operational performance, management/ownership changes and competition. The evaluation process is based on information that the Company requests from these investees. This information is not subject to the same disclosure regulations as U.S. publicly traded companies, and as such, the basis for these evaluations is subject to the timing and accuracy of the data received from these investees. The Company has investments in which it uses the equity method of accounting to record its portion of investments in these privately held companies’ net income or loss on a one quarter lag from the actual results of operations. The Company uses the equity method of accounting because of its less than 50 percent ownership and lack of control. The Company’s interest in the earnings or losses of the privately held companies will be reflected in other expense, net on the consolidated statements of operations. The Company’s investments are assessed for impairment when a review of the investee’s operations indicates that there is a decline in value of the investment and the decline is other than temporary. Such indicators include, but are not limited to, limited capital resources, limited prospects of receiving additional financing, and prospects for liquidity of the related securities. Impaired investments are written down to estimated fair value. The Company estimates fair value using a variety of valuation methodologies, including comparing the investee with publicly traded companies in similar lines of business, applying valuation multiples to estimated future operating results and estimated discounted future cash flows. There were $0, $734 and $0 in impairments to investments during the years ended December 31, 2017, 2016 and 2015, respectively. See “Note 9 Other Non-Current Assets.”
Property and Equipment	Property and Equipment— Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of furniture and equipment is computed using the straight-line method based on estimated useful lives of the depreciable assets. Leasehold improvements are amortized on a straight-line basis over their estimated economic useful lives or the remaining lease term, whichever is shorter. Improvements are capitalized, while repairs and maintenance costs are charged to operations as incurred. Assets are reviewed for recoverability whenever events or circumstances indicate the carrying value may not be recoverable.
Internally Developed Software for Internal Use	Internally Developed Software for Internal Use— Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs are expensed as incurred. Internally developed software is amortized on a straight-line basis over its estimated useful life. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments of internally developed software for internal use during the years ended December 31, 2017, 2016 and 2015.
Goodwill and Intangible Assets	Goodwill and Intangible Assets— Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Goodwill is reviewed for impairment each year using a qualitative or quantitative process that is performed at least annually or whenever events or circumstances indicate that impairment may have occurred. The Company performs the annual impairment analysis on October 31 in order to provide management time to complete the analysis prior to year-end. The Company has concluded that it has two reporting units. Prior to performing the quantitative evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. If it is determined that it is unlikely that the carrying value exceeds the fair value, the Company is not required to complete the quantitative goodwill impairment evaluation. If it is determined that the carrying value may exceed fair value when considering qualitative factors, a quantitative goodwill impairment evaluation is performed. When performing the quantitative evaluation, if the carrying value of the reporting unit exceeds its fair value, an impairment loss equal to the difference will be recorded. No goodwill impairment charges have been recorded for the years ended December 31, 2017, 2016 and 2015. Intangible assets are recorded at cost less accumulated amortization. Intangible assets are reviewed for impairment whenever events or changes in circumstances may affect the recoverability of the net assets. Such reviews include an analysis of current results and take into consideration the undiscounted value of projected operating cash flows. No intangible asset impairment charges have been recorded for the years ended December 31, 2017, 2016 and 2015.
Operating Leases	Operating Leases— In certain circumstances, the Company enters into leases with free rent periods, rent escalations or lease incentives over the term of the lease. In such cases, the Company calculates the total payments over the term of the lease and records them ratably as rent expense over that term.
Income Taxes	Income Taxes— The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount that is more likely than not to be realized. The Company follows authoritative guidance related to how uncertain tax positions should be recognized, measured, disclosed and presented in the consolidated financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained “when challenged” or “when examined” by the applicable tax authority. The tax benefits recognized in the consolidated financial statements from tax positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Non-income tax liabilities	Non-income Tax Liabilities —Certain of the Company’s revenues are subject to sales and use taxes in certain jurisdictions where it conducts business in the United States. During 2017 and 2016, the Company estimated that a sales and use tax liability of $8,522 and $10,108, respectively, was probable related to multiple taxing jurisdictions with respect to revenues in the years ended December 31, 2017 and December 31, 2016, and prior years. This amount is included in accrued expenses and other liabilities on the consolidated balance sheets. For the same periods, the Company also estimated a sales and use tax receivable of $2,704 and $3,879, respectively, related to estimated recoverability of amounts due from customers. This amount is included in prepaid expenses and other current assets on the consolidated balance sheets. For the year ended December 31, 2017 and 2016, we recognized net sales and use tax expense of $345 and $6,229, including interest of approximately $244 and $914, respectively. The sales and use tax adjustment was recorded in general and administration on the consolidated statements of operations. Additional future information obtained from the applicable jurisdictions may affect the Company’s estimate of its sales and use tax liability.
Business Combinations	Business Combinations— The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. The Company determines the fair value of contingent acquisition consideration payable on the acquisition date using a discounted cash flow approach utilizing an appropriate discount rate. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to fair market value adjustment on contingent consideration in the Company’s consolidated statements of operations. Changes in the fair value of the contingent acquisition consideration payable can result from adjustments to the estimated revenue forecasts included in the contingent payment calculations.
Stock-Based Compensation	Stock-Based Compensation— Compensation cost relating to stock-based awards made to employees and directors is recognized in the consolidated financial statements using the Black-Scholes option-pricing model in the case of non-qualified stock option awards, and intrinsic value in the case of restricted stock awards. The Company measures the cost of such awards based on the estimated fair value of the award measured at the grant date and recognizes the expense on a straight-line basis over the requisite service period, which is the vesting period. Determining the fair value of stock options requires the Company to make several estimates, including the volatility of its stock price, the expected life of the option, forfeiture rate, dividend yield and interest rates. The Company estimates the expected life of its options using historical internal forfeiture data. The Company estimates stock-price volatility using historical third-party quotes of Envestnet’s common stock. The Company utilizes a risk-free interest rate, which is based on the yield of U.S. zero coupon securities with a maturity equal to the expected life of the options. The Company has not and does not expect to pay dividends on its common shares. The Company is required to estimate expected forfeitures of stock-based awards at the grant date and recognize compensation cost only for those awards expected to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Therefore, changes in the forfeiture assumptions may impact the total amount of expense ultimately recognized over the vesting period. Estimated forfeitures will be reassessed in subsequent periods and may change based on new facts and circumstances.
Convertible Notes	Convertible Notes —On December 15, 2014, the Company issued $172,500 of 1.75% convertible notes due December 2019 (the “Convertible Notes”). The Convertible Notes are accounted for in accordance with ASC 470-20. The Company has determined that the embedded conversion options in the Convertible Notes are not required to be separately accounted for as a derivative under GAAP. The Company separately accounts for the liability and equity components of Convertible Notes that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option, or equity component, in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes the accretion of the resulting discount using the effective interest method as part of interest expense in its consolidated statements of operations.
Non-controlling Interest	Non-controlling Interest —Effective February 1, 2014, the Company formed ERS with various third parties. ERS offers advisory and technology enabled services to financial advisors and retirement plans. In exchange for a 64.5% ownership interest in ERS, the Company contributed certain assets and has agreed to fund a certain amount of the operating expenses of ERS. As described in “Note 3 – Business Acquisitions,” primarily due to the issuance of units related to the contributions of FinaConnect, Inc. (“FinaConnect”) and Castle Rock Innovations, Inc. (“Castle Rock”) and the purchase of additional ERS units acquired from the former owners of Klein Decisions, Inc. (“Klein”), the Company’s ownership in ERS increased to 80.8% as of December 31, 2016. During the year ended December 31, 2017, the Company purchased an additional 15 units, which increased the Company’s ownership percentage to 81.5% as of December 31, 2017. The allocation of gains and losses to the members of ERS is based on a hypothetical liquidation book value method in accordance with the ERS operating agreement. There were no losses for the years ended December 31, 2017, 2016 and 2015, reflected as non-controlling interest in the consolidated statements of operations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements —In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers,” which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. In August 2015, the FASB issued ASU 2015-14 to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company will adopt the standard in its first quarter of 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial adoption. The standard also allows entities to apply certain practical expedients at their discretion. The Company will adopt the standard using the modified retrospective approach with a cumulative catch up adjustment and will provide additional disclosures comparing results to previous GAAP in our 2018 consolidated financial statements. We plan to apply the new revenue standard only to contracts not completed as of the date of initial application, referred to as open contracts. The Company has substantially completed the implementation of key systems changes and changes to internal controls over financial reporting to allow the Company to timely compile the information needed to account for transactions under this new guidance. In adopting ASU 2014-09, the Company expects the following significant changes: i) Timing of revenue recognition for initial implementation services. Under ASU 2014-09, the Company will recognize professional services revenue from the initial implementation services over the remaining contractual term of the arrangement. Previously, this revenue was recognized on a straight line basis over the estimated life of the customer relationship; and ii) Deferral of incremental direct costs to obtaining a contract with a customer. Under ASU 2014-09, the Company will capitalize certain variable compensation (i.e., short term incentive compensation) payable to its sales force and subsequently amortize the capitalized costs over a period of time that is consistent with the transfer of the related good or service to the customer, which the Company has determined to be five years. Capitalized costs, net of accumulated amortization, will be included in other non-current assets on the Company’s consolidated balance sheets. Previously, the Company elected to expense these incremental direct costs as incurred. The Company currently estimates the adoption of ASU 2014-09 will decrease its 2018 beginning accumulated deficit balance by approximately $9,000, offset by an approximate $4,000 decrease in deferred revenues and an approximate $5,000 increase in other non-current assets. Additionally, while we are still in the process of assessing the statement of operations classification impact, under ASU 2014-09, for a subset of third party manager agreements, the existing presentation of gross versus net revenue may change. In February 2016, the FASB issued ASU 2016-02, “Leases”. This update amends the requirements for assets and liabilities recognized for all leases longer than twelve months. Lessees will be required to recognize a lease liability measured on a discounted basis, which is the lessee’s obligation to make lease payments arising from the lease, and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This standard will be effective for financial statements issued by public companies for the annual and interim periods beginning after December 15, 2018. Early adoption of the standard is permitted. The Company is currently evaluating the potential impact of this guidance on our consolidated financial statements. In March 2016, The FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”. This update is intended to reduce the cost and complexity of accounting for share-based payments; however, some changes may also increase volatility in reported earnings. Under the new guidance, all excess tax benefits and deficiencies will be recorded as an income tax benefit or expense in the income statement and excess tax benefits will be recorded as an operating activity in the statements of cash flows. The new guidance also allows withholding up to the maximum individual statutory tax rate without classifying the awards as a liability. The cash paid to satisfy the statutory income tax withholding obligation will be classified as a financing activity in the statements of cash flows. Lastly, the update allows forfeitures to be estimated or recognized when they occur. The requirements for the excess tax effects related to share-based payments at settlement must be applied on a prospective basis, and the other requirements under this standard are to be applied on a retrospective basis. This standard will be effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2016. These changes became effective for the Company’s fiscal year beginning January 1, 2017 and have been reflected in these consolidated financial statements. As a result of the retrospective adoption of ASU 2016-09, for the year ended December 31, 2016 and 2015, net cash provided by operating activities increased by $4,455 and $17,607, respectively, with a corresponding offset to net cash used in financing activities. The Company did not elect an accounting policy change to record forfeitures as they occur and will continue to estimate forfeitures at each period. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments,” which clarifies eight specific cash flow issues in an effort to reduce diversity in practice in how certain transactions are classified within the statements of cash flows. This ASU is effective for the Company January 1, 2018 with early adoption permitted. Upon adoption, the ASU requires a retrospective application unless it is determined that it is impractical to do so for which it must be retrospectively applied at the earliest date practical. We will adopt the standard effective January 1, 2018. Upon adoption, the Company does not anticipate significant changes to the Company's existing accounting policies or presentation of the consolidated statements of cash flows. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350),” which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units’ fair value. This standard will be effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company has adopted this standard as of April 1, 2017, however it did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (Topic 805), which provides a new framework for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This standard will be effective for public companies for annual and interim periods beginning after December 15, 2017. Early adoption is permitted effective for transactions not yet reported in financial statements issued or made available for issuance. We will adopt the standard effective January 1, 2018. Upon adoption, the Company will assess all future purchases within the context of this updated guidance. We do not anticipate significant changes to the Company's existing accounting policies or presentation of the consolidated statements of cash flows. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. This update clarifies which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting. Specifically, an entity would not apply modification account if the fair value, vesting conditions, and classification as an equity or liability instrument are the same before and after the modification. The ASU is effective for financial statements issued by public companies for the annual and interim periods beginning after December 15, 2017. Early adoption of the standard is permitted. The standard will be applied prospectively to awards modified on or after the adoption date. We will adopt the standard effective January 1, 2018. Upon adoption, the Company will assess all future awards within the context of this updated guidance. We do not anticipate significant changes to the Company's existing accounting policies or presentation of the consolidated statements of cash flows.

Business Acquisitions (Tables)

Business Acquisitions (Tables)	12 Months Ended
	Dec. 31, 2017
Upside Holdings, Inc.
Business acquisitions
Summary of consideration transferred in the acquisition	Cash consideration $ 2,040 Purchase consideration liability 615 Cash acquired (14) Total $ 2,641
Summary of the estimated fair values of the assets acquired and liabilities assumed	Total tangible assets acquired $ 88 Total liabilities assumed (404) Identifiable intangible assets 1,450 Goodwill 1,507 Total net assets acquired $ 2,641
Summary of intangible assets acquired, estimated useful lives and amortization method	Estimated Amortization Amount Useful Life in Years Method Proprietary technology $ 1,450 4 Straight-line
Castle Rock Innovations, Inc.
Business acquisitions
Summary of consideration transferred in the acquisition	Cash consideration $ 6,190 Contingent consideration liability 1,500 Cash acquired (320) Total $ 7,370
Summary of the estimated fair values of the assets acquired and liabilities assumed	Total tangible assets acquired $ 255 Total liabilities assumed (1,366) Identifiable intangible assets 3,900 Goodwill 4,581 Total net assets acquired $ 7,370
Summary of intangible assets acquired, estimated useful lives and amortization method	Estimated Amortization Amount Useful Life in Years Method Customer list $ 3,000 Accelerated Proprietary technology 800 Straight-line Trade names and domains 100 Straight-line Total $ 3,900
Yodlee, Inc
Business acquisitions
Summary of consideration transferred in the acquisition	Cash consideration $ 375,658 Stock consideration 186,522 Attribution of the fair market value of replacement awards 4,318 Cash acquired (63,234) Total $ 503,264
Summary of the estimated fair values of the assets acquired and liabilities assumed	Accounts receivable $ 16,882 Prepaid expenses and other current assets 3,507 Property and equipment, net 13,800 Other non-current assets 1,959 Identifiable intangible assets 244,000 Goodwill 282,429 Total assets acquired 562,577 Accounts payable (2,424) Accrued expenses (28,173) Capital lease obligations (1,527) FIN 48 liability (5,450) Deferred tax liability (16,693) Deferred revenue (4,100) Other long term liabilities (946) Total liabilities assumed (59,313) Total net assets acquired $ 503,264
Summary of intangible assets acquired, estimated useful lives and amortization method	Estimated Amortization Amount Useful Life in Years Method Customer list $ 177,000 15 Accelerated Backlog 11,000 4 Accelerated Proprietary technology Straight-line Trade names Straight-line Total $
Finance Logix
Business acquisitions
Summary of consideration transferred in the acquisition	Cash consideration $ 20,595 Stock and stock option consideration 8,930 Purchase consideration liability 3,000 Cash acquired (909) Total $ 31,616
Summary of the estimated fair values of the assets acquired and liabilities assumed	Total tangible assets acquired $ 952 Total liabilities assumed (2,628) Identifiable intangible assets 9,800 Goodwill 23,492 Total net assets acquired $ 31,616
Summary of intangible assets acquired, estimated useful lives and amortization method	Estimated Amortization Amount Useful Life in Years Method Customer list $ 8,300 Accelerated Proprietary technology 1,000 Straight-line Trade names and domains 500 Straight-line Total $ 9,800
FinaConnect, Inc.
Business acquisitions
Summary of consideration transferred in the acquisition	Cash consideration $ 6,425 Contingent consideration liability 1,929 Working capital adjustment 269 Cash acquired (1) Total $ 8,622
Summary of the estimated fair values of the assets acquired and liabilities assumed	Total tangible assets acquired $ 430 Total liabilities assumed (400) Identifiable intangible assets 3,800 Goodwill 4,792 Total net assets acquired $ 8,622
Summary of intangible assets acquired, estimated useful lives and amortization method	Estimated Amortization Amount Useful Life in Years Method Customer list $ 2,800 12 Accelerated Proprietary technology 900 5 Straight-line Trade names and domains 100 2 Straight-line Total $ 3,800
Wheelhouse Analytics, LLC
Business acquisitions
Summary of consideration transferred in the acquisition	Cash consideration $ 13,299 Contingent consideration liability 2,364 Purchase consideration liability 887 Working capital adjustment 110 Cash acquired (80) Total $ 16,580
Summary of the estimated fair values of the assets acquired and liabilities assumed	Total tangible assets acquired $ 385 Total liabilities assumed (1,420) Identifiable intangible assets 6,600 Goodwill 11,015 Total net assets acquired $ 16,580
Summary of intangible assets acquired, estimated useful lives and amortization method	Estimated Amortization Amount Useful Life in Years Method Customer list $ 4,000 15 Accelerated Proprietary technology 2,500 6 Straight-line Trade names and domains 100 2 Straight-line Total $ 6,600

Cost of Revenues (Tables)

Cost of Revenues (Tables)	12 Months Ended
	Dec. 31, 2017
Cost of Revenues
Schedule of costs of revenues by revenue category	2017 2016 2015 Assets under management or administration $ 194,894 $ 160,842 $ 152,573 Subscription and licensing 19,818 16,113 7,785 Professional services and other 4,325 3,635 951 Total $ 219,037 $ 180,590 $ 161,309

Prepaid Expenses and Other Cu36

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Prepaid Expenses and Other Current Assets
Schedule of prepaid expenses and other current assets	At December 31, 2017 2016 Non-income tax receivable $ $ 3,879 FinaConnect escrow 429 Prepaid technology 1,318 Income tax receivable 1,864 Prepaid rent 882 Prepaid insurance 552 Other 7,300 $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property and Equipment
Schedule of components of property and equipment, net	At December 31, Estimated Useful Life 2017 2016 Cost: Computer equipment and software 3 years $ 56,192 $ 52,921 Leasehold improvements Shorter of the lease term or useful life of the asset 23,192 17,286 Office furniture and fixtures 3-7 years 8,110 6,911 Other office equipment 3-5 years 2,052 1,367 89,546 78,485 Less: accumulated depreciation and amortization (53,637) (45,485) Property and equipment, net $ 35,909 $ 33,000
Schedule of cost amount and related accumulated depreciation written off by category during the period	Year Ended December 31, 2017 Year Ended December 31, 2016 Accumulated Accumulated Cost Depreciation Cost Depreciation Computer equipment and software $ 7,528 $ (7,523) $ 6,593 $ (6,498) Office furniture and fixtures 184 (113) 225 (206) Other office equipment — — 1,175 (916) Leasehold improvements — — 130 (105) Total property and equipment retirements $ 7,712 $ (7,636) $ 8,123 $ (7,725)
Schedule of depreciation and amortization expense	Year Ended December 31, 2017 2016 2015 Depreciation and amortization expense $ 15,383 $ 14,838 $ 7,668

Internally Developed Software (

Internally Developed Software (Tables)	12 Months Ended
	Dec. 31, 2017
Internally Developed Software.
Schedule of components of internally developed software, net	At December 31, Estimated Useful Life 2017 2016 Internally developed software 5 years $ 46,342 $ 33,718 Less: accumulated amortization (24,168) (18,858) Internally developed software, net $ 22,174 $ 14,860
Schedule of amortization expense	Year Ended December 31, 2017 2016 2015 Amortization expense $ 5,310 $ 3,646 $ 2,658

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets
Schedule of changes in the carrying amount of goodwill by segment	Envestnet Envestnet | Yodlee Total Balance at December 31, 2015 $ 135,224 $ 286,049 $ 421,273 FinaConnect acquisition 4,792 — 4,792 Wheelhouse acquisition — 10,558 10,558 Purchase accounting adjustments - Yodlee 24,613 (28,233) (3,620) Purchase accounting adjustments - Castle Rock (388) — (388) Other (490) (189) (679) Balance at December 31, 2016 Purchase accounting adjustments - Wheelhouse — 457 457 Foreign currency translation — 562 Balance at December 31, 2017 $ $ $
Schedule of components of intangible assets, net	December 31, 2017 December 31, 2016 Gross Net Gross Net Estimated Carrying Accumulated Carrying Carrying Accumulated Carrying Useful Life Amount Amortization Amount Amount Amortization Amount Customer lists 7 - 15 years $ 259,350 $ (78,482) $ 180,868 $ 259,490 $ (54,861) $ 204,629 Proprietary technologies 4 - 8 years 57,377 (31,067) 26,310 57,770 (20,214) 37,556 Trade names 1 - 7 years 24,840 (9,701) 15,139 25,007 (6,178) 18,829 Backlog 4 years 11,000 (10,586) 414 11,000 (6,456) 4,544 Total intangible assets $ 352,567 $ (129,836) $ 222,731 $ 353,267 $ (87,709) $ 265,558
Schedule of amortization expense	Year Ended December 31, 2017 2016 2015 Amortization expense $ $ 45,515 $ 17,636
Schedule of future amortization expense of the intangible assets	Years ending December 31: 2018 $ 35,807 2019 31,288 2020 2021 2022 Thereafter 87,639 $ 222,731

Other Non-Current Assets (Table

Other Non-Current Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Other Non-Current Assets.
Schedule of components of other non-current assets	At December 31, 2017 2016 Assets to fund deferred compensation liability $ 5,185 $ 2,738 Deposits: Lease 4,291 4,262 Other 615 2,083 Unamortized issuance costs on revolving credit facility 3,106 — Investments in private companies 2,731 2,750 Other 1,248 2,130 $ 17,176 $ 13,963

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Measurements
Schedule of changes in fair value of the Company’s financial assets and liabilities measured at fair value	December 31, 2017 Fair Value Level I Level II Level III Assets Money market funds(1) $ $ $ — $ — Assets to fund deferred compensation liability(2) — — Total assets $ $ $ — $ Liabilities Contingent consideration $ $ — $ — $ Deferred compensation liability(3) — — Total liabilities $ $ $ — $ December 31, 2016 Fair Value Level I Level II Level III Assets Money market funds(1) $ $ $ — $ — Assets to fund deferred compensation liability(2) — — Total assets $ $ $ — $ Liabilities Contingent consideration $ $ — $ — $ Deferred compensation liability(3) — — Total liabilities $ $ $ — $ (1) The fair values of the Company’s investments in money-market funds are based on the daily quoted market prices for the net asset value of the various money market funds. (2) The deferred compensation asset fair value is based upon the cash surrender value of the life insurance premiums. The Company recognized immaterial gains related to this asset within the statements of operations for the year ended December 31, 2017. (3) The deferred compensation liability is included in other non-current liabilities in the consolidated balance sheets and its fair market value is based on the daily quoted market prices for the net asset value of the various funds in which the participants have selected.
Summary of changes in the fair value of the Company's Level 3 liability	Fair Value of Contingent Consideration Liabilities Balance at December 31, 2016 $ Settlement of contingent consideration liability Contingent consideration adjustment Accretion on contingent consideration 417 Balance at December 31, 2017 $ 2,781
Summary of changes in the fair value of the Company's Level 3 assets	Fair Value of Assets to Fund Deferred Compensation Liability Balance at December 31, 2016 $ Contributions and fair value adjustments Balance at December 31, 2017 $ 5,185

Accrued Expenses and Other Li42

Accrued Expenses and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Accrued Expenses and Other Liabilities
Schedule accrued expenses and other liabilities	At December 31, 2017 2016 Accrued compensation and related taxes $ 43,724 $ 35,287 Accrued investment manager fees 39,324 31,278 Sales and use tax payable 9,037 10,108 Accrued professional services 4,985 3,213 Definite consideration 1,250 445 Other accrued expenses 7,577 7,432 $ 105,897 $ 87,763

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2017
Debt
Schedule of convertible debt obligations	At December 31, 2017 2016 Convertible Notes $ 172,500 $ 172,500 Unaccreted discount on Convertible Notes (11,677) (17,149) Unamortized issuance costs on Convertible Notes (1,833) (2,776) Convertible Notes carrying value $ 158,990 $ 152,575 Term Notes $ — $ 142,000 Unamortized issuance costs on Term Notes — (3,665) Term Notes carrying value $ — $ 138,335 Revolving credit facility balance $ 81,168 $ —
Schedule of interest expense	Year Ended December 31, 2017 2016 2015 Coupon interest $ 3,019 $ 3,019 $ 3,019 Amortization of issuance costs 3,279 2,875 1,462 Accretion of debt discount 5,472 5,237 4,932 Interest on credit agreement 4,153 5,128 606 Undrawn and other fees 424 341 252 $ 16,347 $ 16,600 $ 10,271

Other Non-Current Liabilities (

Other Non-Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Other Non-Current Liabilities
Other Non-Current Liabilities	December 31, December 31, 2017 2016 Uncertain tax positions $ $ Accrued deferred compensation Other Accrued purchase liability — $ 15,102 $ 13,436

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes
Summary of loss before income tax provision (benefit)	Year Ended December 31, 2017 2016 2015 Domestic $ $ (47,059) $ 7,059 Foreign 6,569 1,929 Total $ $ (40,490) $ 8,988
Summary of components of the income tax provision charged to operations	Year Ended December 31, 2017 2016 2015 Current: Federal $ $ 3,812 $ 12,731 State 1,172 1,644 Foreign 4,509 685 9,493 15,060 Deferred: Federal (4,439) 5,992 (9,384) State 146 117 (1,288) Foreign (304) (525) 164 (4,597) 5,584 (10,508) Total $ $ 15,077 $ 4,552
Schedule of net deferred tax assets (liabilities)	At December 31, 2017 2016 Deferred revenue $ $ 6,309 Prepaid expenses and accruals 1,363 Deferred rent and lease incentives 3,940 Net operating loss and tax credit carryforwards 100,471 Property and equipment and intangible assets (90,222) Stock-based compensation expense 10,641 Convertible Notes (6,346) Other (2,101) Total deferred tax assets Less: valuation allowance (32,513) (29,610) Net deferred tax liabilities $ $ (5,555)
Summary of expected tax provision	Year Ended December 31, 2017 2016 2015 Tax provision (benefit), at U.S. federal statutory tax rate $ (573) $ (13,767) $ 3,056 State income tax provision (benefit), net of federal benefit (1,251) (2,053) 247 Effect of stock-based compensation excess tax benefit (11,522) — — Effect of permanent items 1,145 1,773 1,899 Change in valuation allowance 2,151 26,269 841 Effect of change in federal income tax rate 13,792 — — Effect of change in state income tax rate 537 279 283 Uncertain tax positions 3,668 2,024 (859) Research and development credits (2,815) (2,758) (1,914) Change in permanent reinvestment assertion (4,494) — — State net operating loss adjustment, net of valuation allowance impact 836 — — Other 117 3,310 999 Income tax provision $ 1,591 $ 15,077 $ 4,552
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefit	Year Ended December 31, 2017 2016 2015 Unrecognized tax benefits balance at beginning of year $ 16,476 $ 14,129 $ 2,092 Additions based on tax positions related to the current year 1,691 1,153 576 Additions based on tax positions related to prior years 145 1,257 — Additions based on tax positions related to acquired entities — — 12,780 Reductions for settlements with taxing authorities related to prior years — — Reductions for lapses of statute of limitations — (63) (199) Unrecognized tax benefits balance at end of year $ 18,312 $ 16,476 $ 14,129

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Stock-Based Compensation
Schedule of stock-based compensation expense	Year Ended December 31, 2017 2016 2015 Stock-based compensation expense $ 31,331 $ 33,276 $ 15,161 Tax effect on stock-based compensation expense (11,906) (13,001) (7,678) Net effect on income $ 19,425 $ 20,275 $ 7,483
Schedule of weighted average assumptions used to value options granted	At December 31, 2017 2016 2015 Grant date fair value of options $ 14.51 $ 9.56 $ 19.06 Volatility 43.8 % 42.2 % 37.8 % Risk-free interest rate 2.1 % % 1.8 % Dividend yield — % — % — % Expected term (in years) 6.3
Summary of option activity under the Company's plans	Weighted-Average Weighted- Remaining Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value Outstanding as of December 31, 2014 4,265,337 $ 10.73 4.7 $ 163,830 Granted 358,087 48.38 Exercised (1,047,911) 7.90 Forfeited (41,722) 41.10 Outstanding as of December 31, 2015 3,533,791 15.03 4.7 61,199 Granted 163,864 22.38 Exercised (598,382) 8.23 Forfeited (66,079) 35.08 Outstanding as of December 31, 2016 3,033,194 16.33 4.3 63,264 Granted 75,238 31.70 Exercised (837,857) 9.49 Forfeited (16,010) 37.42 Outstanding as of December 31, 2017 2,254,565 19.23 4.3 69,939 Options exercisable 2,041,660 17.74 3.8 66,291
Schedule of other information	Year Ended December 31, 2017 2016 2015 Total intrinsic value of options exercised $ $ $ 37,879 Cash received from exercises of stock options 8,279
Summary of the activity for unvested restricted stock units and awards granted under the Company's plans	Weighted- Average Grant Number of Date Fair Value Shares per Share Outstanding as of December 31, 2014 1,098,674 $ Granted 1,508,796 Vested (434,292) Forfeited (19,967) Outstanding as of December 31, 2015 2,153,211 Granted 1,009,661 Vested (1,082,206) Forfeited (185,907) Outstanding as of December 31, 2016 1,894,759 Granted 959,591 32.38 Vested (969,513) 31.51 Forfeited (118,198) 30.11 Outstanding as of December 31, 2017 1,766,639 32.48

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	12 Months Ended
	Dec. 31, 2017
Net Income (Loss) Per Share
Schedule of reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to common stockholders	Year Ended December 31, 2017 2016 2015 Basic income (loss) per share calculation: Net income (loss) attributable to Envestnet, Inc. $ $ (55,567) $ 4,436 Basic number of weighted-average shares outstanding 42,814,222 36,500,843 Basic $ $ $ Diluted income (loss) per share calculation: Net income (loss) attributable to Envestnet, Inc. $ $ $ Basic number of weighted-average shares outstanding 43,732,148 Effect of dilutive shares: Options to purchase common stock — — 1,700,248 Unvested restricted stock units — — 185,782 Diluted number of weighted-average shares outstanding 43,732,148 42,814,222 38,386,873 Diluted $ $ $
Schedule of anti-dilutive securities excluded from computation of diluted earings per share	At December 31, 2017 2016 2015 Options to purchase common stock 2,254,565 3,033,194 297,343 Unvested restricted stock awards and units 1,766,639 1,894,759 210,233 Ungranted unvested restricted stock units related to Upside — — 132,384 Convertible Notes 2,743,321 2,743,321 2,743,321 Total 6,764,525 7,671,274 3,383,281

Major Customers (Tables)

Major Customers (Tables)	12 Months Ended
	Dec. 31, 2017
Major Customers
Summary of revenues from major customers	Year Ended December 31, 2017 2016 2015 Fidelity 17 % 15 % 18 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies
Schedule of future minimum lease commitments under operating leases	Years ending December 31: 2018 $ 14,104 2019 2020 2021 2022 Thereafter 43,406 Total $ 111,138
Schedule of rent expense for all operating leases	Year Ended December 31, 2017 2016 2015 Rent expense $ 18,084 $ $

Benefit Plan (Tables)

Benefit Plan (Tables)	12 Months Ended
	Dec. 31, 2017
Benefit Plan
Schedule of voluntary employer matching contributions	Year Ended December 31, 2017 2016 2015 Voluntary employer matching contributions $ 4,038 $ $

Segment information (Tables)

Segment information (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Information
Schedule of revenue by segment	Year Ended December 31, 2017 2016 2015 Revenue: Envestnet Assets under management or administration $ 410,016 $ 352,498 $ 333,684 Subscription and licensing 106,048 84,340 63,719 Professional services and other 11,841 10,794 9,435 Total Envestnet segment revenues 527,905 447,632 406,838 Envestnet | Yodlee Subscription and licensing 139,819 113,785 11,561 Professional services and other 15,955 16,747 2,520 Total Envestnet | Yodlee segment revenues 155,774 130,532 14,081 Consolidated revenue $ 683,679 $ 578,164 $ 420,919 Fidelity revenue as a percentage of Envestnet segment revenue:
Schedule of income (loss) from operations by segment	Year Ended December 31, 2017 2016 2015 Envestnet $ 75,449 $ 41,678 $ 43,278 Envestnet | Yodlee (19,456) (38,547) (2,984) Total segment income from operations 55,993 3,131 40,294 Nonsegment operating expenses (39,573) (26,575) (21,302) Interest expense, net (16,146) (16,563) (9,933) Other expense, net (1,963) (483) (71) Consolidated income (loss) before income tax provision (1,689) (40,490) 8,988 Income tax provision 1,591 15,077 4,552 Consolidated net income (loss) (3,280) (55,567) 4,436 Add: Net income (loss) attributable to non-controlling interest — — — Consolidated net income (loss) attributable to Envestnet, Inc. $ (3,280) $ (55,567) $ 4,436
Summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures	At December 31, 2017 2016 Segment assets: Envestnet $ 353,048 $ 341,602 Envestnet | Yodlee 509,004 530,799 Consolidated total assets $ 862,052 $ 872,401 Year Ended December 31, 2017 2016 2015 Segment depreciation and amortization: Envestnet $ 26,223 $ 24,784 $ 23,369 Envestnet | Yodlee 36,597 39,215 4,593 Consolidated depreciation and amortization $ 62,820 $ 63,999 $ 27,962 Year Ended December 31, 2017 2016 2015 Segment capital expenditures: Envestnet $ 22,434 $ 17,120 $ 13,682 Envestnet | Yodlee 5,135 5,456 1,034 Consolidated capital expenditures $ 27,569 $ 22,576 $ 14,716

Geographical Information (Table

Geographical Information (Tables)	12 Months Ended
	Dec. 31, 2017
Geographical Information
Schedule of revenue by geography	Year Ended December 31, 2017 2016 2015 United States $ 617,835 $ 519,998 $ 388,098 International (1) 65,844 58,166 32,821 Total $ 683,679 $ 578,164 $ 420,919 (1) No foreign country accounted for more than 10% of total revenue.
Schedule of property, plant, and equipment, net by geographic area	At December 31, 2017 2016 United States $ 30,647 $ 28,713 India 4,907 3,596 Other 691 Total $ 35,909 $ 33,000

Quarterly Financial Data (Una53

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Data (Unaudited)
Schedule of quarterly results	2017 First Second Third Fourth Total revenues $ 157,786 $ 167,417 $ 175,614 $ 182,862 Income (loss) from operations (3,354) 2,743 4,348 12,683 Net income (loss) attributable to Envestnet, Inc. (13,135) (6,470) (1,320) 17,645 Net income (loss) per share Basic (1) (0.30) (0.15) (0.03) 0.40 Diluted (1) (2) (0.30) (0.15) (0.03) 0.38 2016 First Second Third Fourth Total revenues $ 131,821 $ 141,708 $ 149,155 $ 155,480 Loss from operations (12,760) (6,330) (1,291) (3,063) Net loss attributable to Envestnet, Inc. (10,993) (7,943) (4,057) (32,574) Net loss per share Basic (1) (0.26) (0.19) (0.09) (0.75) Diluted (1) (0.26) (0.19) (0.09) (0.75) (1) Quarterly values may not sum to annual values due to rounding. Quarterly values may not sum to annual values due to differences in quarterly dilution compared to year to date dilution.

Organization and Description 54

Organization and Description of Business (Details)	12 Months Ended
	Dec. 31, 2017stateitemproduct
Number of RIAs | item	3
Number of states with which the broker-dealer is registered | state	50
Envestnet Enterprise
Number of investment products	18,000
Envestnet Portfolio Management Consultants (“PMC”)
Number of investment products	4,000

Summary of Significant Accoun55

Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Significant accounting policies
Estimated period of customer relationship									5 years
Cost of revenues
Assets under management or administration									$ 194,894	$ 160,842	$ 152,573
Subscription and licensing									19,818	16,113	7,785
Professional services and other									4,325	3,635	951
Total									219,037	180,590	161,309
Changes in allowance for doubtful accounts
Allowance for doubtful accounts	$ 407				$ 242				407	242	221
Impairment to investments									0	734	0
Impairments of internally developed software									$ 0	0	0
Number of reporting units | item									2
Goodwill impairment charges									$ 0	0	0
Intangible asset impairment charges									0	0	0
Sales and use tax liability	8,522				10,108				8,522	10,108
Sales and use tax expense									345	6,229
Sales and use tax, interest									244	914
Sales and use tax receivable	2,704				3,879				2,704	3,879
Total revenues	$ 182,862	$ 175,614	$ 167,417	$ 157,786	$ 155,480	$ 149,155	$ 141,708	$ 131,821	$ 683,679	$ 578,164	$ 420,919

Summary of Significant Accoun56

Summary of Significant Accounting Policies (Notes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 15, 2014	Feb. 01, 2014
Convertible Notes
Ownership interest (as a percent)			50.00%
Convertible Notes
Convertible Notes
Face amount and over allotments				$ 172,500
Interest rate (as a percent)			1.75%	1.75%
Term Notes
Convertible Notes
Face amount and over allotments	$ 142,000		$ 0
ERS
Convertible Notes
Ownership interest (as a percent)					64.50%
Net loss attributable to noncontrolling interest	$ 0	$ 0
Klein | ERS
Convertible Notes
Ownership interest (as a percent)	80.80%		81.50%

Summary of Significant Accoun57

Summary of Significant Accounting Policies (Recent Accounting Pronouncement) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ (73,854)	$ (70,574)
Net cash provided by (used in) operating activities	$ 108,607	81,270	$ 42,035
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue recognition period	5 years
Accounting Standards Update 2014-09 | Difference between revenue guidance in effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings				$ 9,000
Deferred revenue				(4,000)
Noncurrent assets				$ 5,000
Accounting Standards Update 2016-09 | Adjustments for New Accounting Principle, Early Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash provided by (used in) operating activities		$ 4,455	$ 17,607

Business Acquisitions (Details)

Business Acquisitions (Details) $ / shares in Units, $ in Thousands

Oct. 03, 2016USD ($)

Feb. 01, 2016USD ($)

Nov. 19, 2015USD ($)shares

Nov. 17, 2015USD ($)$ / sharesshares

Sep. 01, 2015USD ($)$ / shares

Aug. 30, 2015USD ($)

May 06, 2015USD ($)$ / sharesshares

Feb. 24, 2015USD ($)

Dec. 31, 2017USD ($)

Dec. 31, 2016USD ($)

Dec. 31, 2015USD ($)

Jan. 31, 2018USD ($)

Jan. 31, 2017USD ($)

Oct. 31, 2016USD ($)

Feb. 01, 2014

Consideration transferred in acquisition

Cash consideration

$ 445

Acquisition of businesses, net of cash acquired

$ 31,613

$ 328,305

Payments of contingent consideration

$ 2,286

3,729

7,219

Attribution of the fair market value of replacement awards

4,318

Fair market value adjustment to contingent consideration

1,588

(4,153)

Issuance of redeemable units in ERS

900

Ownership interest (as a percent)

50.00%

Acquisitions

Share-based compensation

$ 31,331

33,276

15,161

Estimated fair values of the assets acquired and liabilities assumed

Total tangible assets acquired

$ 255

Identifiable intangible assets

3,900

Goodwill

4,581

432,955

431,936

421,273

Total liabilities assumed

(1,366)

Total net assets acquired

7,370

Intangible assets

Intangible assets acquired, Amount

$ 9,800

Contingent consideration issued in a business acquisitions

4,868

1,500

Pro forma financial information

Acquired intangible asset amortization

42,127

45,515

17,636

Accretion on contingent consideration and purchase liability

512

150

888

Customer lists

Intangible assets

Intangible assets acquired, Amount

$ 8,300

Intangible assets acquired, Useful Life In Years

12 years

Proprietary technologies

Intangible assets

Intangible assets acquired, Amount

$ 1,000

Intangible assets acquired, Useful Life In Years

4 years

Trade names

Intangible assets

Intangible assets acquired, Amount

$ 500

Intangible assets acquired, Useful Life In Years

5 years

FinaConnect, Inc.

Consideration transferred in acquisition

Cash consideration

$ 6,425

Cash acquired

(1)

Contingent consideration liability

1,929

2,286

Total

8,622

Working capital adjustment

269

Fair market value adjustment to contingent consideration

357

Contingent Consideration first year

2,286

Contingent Consideration second year

0

Acquisitions

Upfront cash consideration paid

$ 6,425

Multiplier for contingent consideration based on acquiree's incremental revenue

4

Estimated fair values of the assets acquired and liabilities assumed

Total tangible assets acquired

$ 430

Identifiable intangible assets

3,800

Goodwill

4,792

Total liabilities assumed

(400)

Total net assets acquired

8,622

Intangible assets

Intangible assets acquired, Amount

$ 3,800

Contingent consideration period

2 years

Contingent consideration, maximum

$ 3,500

Pro forma financial information

Business acquisition costs

135

116

FinaConnect, Inc. | Customer lists

Intangible assets

Intangible assets acquired, Amount

$ 2,800

Intangible assets acquired, Useful Life In Years

12 years

FinaConnect, Inc. | Proprietary technologies

Intangible assets

Intangible assets acquired, Amount

$ 900

Intangible assets acquired, Useful Life In Years

5 years

FinaConnect, Inc. | Trade names

Intangible assets

Intangible assets acquired, Amount

$ 100

Intangible assets acquired, Useful Life In Years

2 years

Castle Rock Innovations, Inc.

Consideration transferred in acquisition

Cash consideration

6,190

Cash acquired

(320)

Contingent consideration liability

1,500

Total

7,370

Intangible assets

Intangible assets acquired, Amount

3,900

Pro forma financial information

Revenue since acquisition

1,011

Net income (loss) since acquisition

109

Acquired intangible asset amortization

178

Castle Rock Innovations, Inc. | Customer lists

Intangible assets

Intangible assets acquired, Amount

$ 3,000

Intangible assets acquired, Useful Life In Years

12 years

Castle Rock Innovations, Inc. | Proprietary technologies

Intangible assets

Intangible assets acquired, Amount

$ 800

Intangible assets acquired, Useful Life In Years

5 years

Castle Rock Innovations, Inc. | Trade names

Intangible assets

Intangible assets acquired, Amount

$ 100

Intangible assets acquired, Useful Life In Years

4 years

Castle Rock Innovations, Inc. | ERS

Intangible assets

Annual contingent consideration payment amount

$ 1,250

$ 445

$ 805

Yodlee, Inc

Consideration transferred in acquisition

Cash consideration

$ 375,658

Acquisition of businesses, net of cash acquired

$ 375,658

Cash acquired

(63,234)

Contingent consideration liability

10,061

Total

503,264

Stock consideration

186,522

Attribution of the fair market value of replacement awards

$ 4,318

Equity value issued (in dollars per share) | $ / shares

$ 17.49

Cash value issued (in dollars per share) | $ / shares

$ 11.51

Exercised statutory appraisal rights (in shares) | shares

577,829

Acquisitions

Consideration issued (in shares) | shares

5,974,000

5,974,000

Envestnet common stock per acquiree share (in shares) | shares

0.1889

Number of full trading days prior to closing date of merger, on which weighted average of sales price per share is determined

10 days

Estimated fair values of the assets acquired and liabilities assumed

Accounts receivable

$ 16,882

Prepaid expenses and other current assets

3,507

Property and equipment, net

13,800

Other non-current assets

1,959

Identifiable intangible assets

244,000

Goodwill

282,429

Total net assets acquired

562,577

Accounts payable

(2,424)

Accrued Expenses

(28,173)

Capital lease obligations

(1,527)

FIN 48 liability

(5,450)

Deferred tax liability

(16,693)

Deferred revenue

(4,100)

Other long term liabilities

(946)

Total liabilities assumed

(59,313)

Total net assets acquired

503,264

Intangible assets

Intangible assets acquired, Amount

244,000

Pro forma financial information

Revenue since acquisition

14,081

Net income (loss) since acquisition

(5,963)

Acquired intangible asset amortization

3,953

Business acquisition costs

1,289

2,186

6,624

Yodlee, Inc | Customer lists

Intangible assets

Intangible assets acquired, Amount

$ 177

Intangible assets acquired, Useful Life In Years

15 years

Yodlee, Inc | Backlog

Intangible assets

Intangible assets acquired, Amount

$ 11

Intangible assets acquired, Useful Life In Years

4 years

Yodlee, Inc | Proprietary technologies

Intangible assets

Intangible assets acquired, Amount

$ 35

Intangible assets acquired, Useful Life In Years

5 years

Yodlee, Inc | Trade names

Intangible assets

Intangible assets acquired, Amount

$ 21

Intangible assets acquired, Useful Life In Years

7 years

Finance Logix

Consideration transferred in acquisition

Cash consideration

$ 20,595

Promissory note

3,000

Cash acquired

(909)

Purchase consideration liability

3,000

Total

31,616

Stock consideration

8,930

Estimated fair values of the assets acquired and liabilities assumed

Total tangible assets acquired

952

Identifiable intangible assets

9,800

Goodwill

23,492

Total liabilities assumed

(2,628)

Total net assets acquired

31,616

Pro forma financial information

Revenue since acquisition

1,892

Net income (loss) since acquisition

(999)

Acquired intangible asset amortization

974

Business acquisition costs

145

548

$ 465

Finance Logix | Stock Options

Consideration transferred in acquisition

Stock consideration

$ 2,542

Equity value issued (in dollars per share) | $ / shares

$ 52.67

Acquisitions

Consideration issued (in shares) | shares

123,410

Finance Logix | Common Stock

Consideration transferred in acquisition

Stock consideration

$ 6,388

Acquisitions

Consideration issued (in shares) | shares

123,410

Wheelhouse Analytics, LLC

Consideration transferred in acquisition

Cash consideration

$ 13,299

Promissory note

887

Cash acquired

(80)

Contingent consideration liability

2,364

Purchase consideration liability

887

Total

16,580

Working capital adjustment

110

Acquisitions

Acquisition related costs

874

$ 383

Estimated fair values of the assets acquired and liabilities assumed

Total tangible assets acquired

385

Identifiable intangible assets

6,600

Goodwill

11,015

Total net assets acquired

16,580

Total liabilities assumed

(1,420)

Intangible assets

Intangible assets acquired, Amount

6,600

Contingent consideration, maximum

$ 4,000

Wheelhouse Analytics, LLC | Customer lists

Intangible assets

Intangible assets acquired, Amount

$ 4,000

Intangible assets acquired, Useful Life In Years

15 years

Wheelhouse Analytics, LLC | Proprietary technologies

Intangible assets

Intangible assets acquired, Amount

$ 2,500

Intangible assets acquired, Useful Life In Years

6 years

Wheelhouse Analytics, LLC | Trade names

Intangible assets

Intangible assets acquired, Amount

$ 100

Intangible assets acquired, Useful Life In Years

2 years

Upside Holdings, Inc.

Consideration transferred in acquisition

Cash consideration

$ 2,040

Promissory note

615

Cash acquired

(14)

Purchase consideration liability

615

Total

2,641

Estimated fair values of the assets acquired and liabilities assumed

Total tangible assets acquired

88

Identifiable intangible assets

1,450

Goodwill

1,507

Total liabilities assumed

(404)

Total net assets acquired

2,641

Upside Holdings, Inc. | Proprietary technologies

Intangible assets

Intangible assets acquired, Amount

$ 1,450

Intangible assets acquired, Useful Life In Years

4 years

One | Castle Rock Innovations, Inc.

Consideration transferred in acquisition

Annual revenue target for contingent consideration (as a percent)

40.00%

Revenue target for contingent consideration adjustment

$ 100

Two | Castle Rock Innovations, Inc.

Consideration transferred in acquisition

Annual revenue target for contingent consideration (as a percent)

35.00%

Revenue target for contingent consideration adjustment

$ 100

Three | Castle Rock Innovations, Inc.

Consideration transferred in acquisition

Annual revenue target for contingent consideration (as a percent)

30.00%

Revenue target for contingent consideration adjustment

$ 100

ERS

Consideration transferred in acquisition

Ownership interest (as a percent)

64.50%

ERS | Castle Rock Innovations, Inc.

Consideration transferred in acquisition

Equity value issued (in dollars per share) | $ / shares

$ 6.5

Issuance of redeemable units in ERS

$ 900

Period to repurchase issued units in the subscription agreement

36 months

ERS | Klein

Consideration transferred in acquisition

Ownership interest (as a percent)

81.50%

80.80%

Cost of Revenues (Details)

Cost of Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cost of Revenues
Assets under management or administration	$ 194,894	$ 160,842	$ 152,573
Subscription and licensing	19,818	16,113	7,785
Professional services and other	4,325	3,635	951
Total	$ 219,037	$ 180,590	$ 161,309

Prepaid Expenses and Other Cu60

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Prepaid Expenses and Other Current Assets
Non-income tax receivable	$ 2,704	$ 3,879
FinaConnect escrow	2,000	429
Prepaid technology	1,843	1,318
Income tax receivable	1,684	1,864
Prepaid rent	959	882
Prepaid insurance	575	552
Other	9,705	7,300
Total prepaid expenses and other current assets	$ 19,470	$ 16,224

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property and equipment, cost:
Property and equipment, gross	$ 89,546	$ 78,485
Less accumulated depreciation and amortization	(53,637)	(45,485)
Property and equipment, net	35,909	33,000
Cost written off	7,712	8,123
Accumulated depreciation written off	(7,636)	(7,725)
Increase in cost of acquired property and equipment		3,922
Depreciation and amortization expense	$ 15,383	14,838	$ 7,668
Computer equipment and software
Property and equipment, cost:
Estimated Useful Life	3 years
Property and equipment, gross	$ 56,192	52,921
Cost written off	7,528	6,593
Accumulated depreciation written off	(7,523)	(6,498)
Office furniture and fixtures
Property and equipment, cost:
Property and equipment, gross	8,110	6,911
Cost written off	184	225
Accumulated depreciation written off	$ (113)	(206)
Office furniture and fixtures | Minimum
Property and equipment, cost:
Estimated Useful Life	3 years
Office furniture and fixtures | Maximum
Property and equipment, cost:
Estimated Useful Life	7 years
Leasehold improvements
Property and equipment, cost:
Property and equipment, gross	$ 23,192	17,286
Cost written off		130
Accumulated depreciation written off		(105)
Other office equipment
Property and equipment, cost:
Property and equipment, gross	$ 2,052	1,367
Cost written off		1,175
Accumulated depreciation written off		$ (916)
Other office equipment | Minimum
Property and equipment, cost:
Estimated Useful Life	3 years
Other office equipment | Maximum
Property and equipment, cost:
Estimated Useful Life	5 years

Internally Developed Software62

Internally Developed Software (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Internally developed software	$ 46,342	$ 33,718
Less accumulated amortization	(24,168)	(18,858)
Internally developed software, net	22,174	14,860
Amortization expense	$ 5,310	$ 3,646	$ 2,658
Internally developed software
Estimated Useful Life	5 years

Goodwill and Intangible Asset63

Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands	Nov. 19, 2015	Dec. 31, 2017	Dec. 31, 2016
Changes in the carrying amount of the Company's goodwill
Balance		$ 431,936	$ 421,273
Other			(679)
Balance		432,955	431,936
Castle Rock Innovations, Inc.
Changes in the carrying amount of the Company's goodwill
Purchase accounting adjustment			(388)
Yodlee, Inc
Changes in the carrying amount of the Company's goodwill
Purchase accounting adjustment			(3,620)
Balance	$ 282,429
FinaConnect, Inc.
Changes in the carrying amount of the Company's goodwill
Acquisition			4,792
Wheelhouse Analytics, LLC
Changes in the carrying amount of the Company's goodwill
Acquisition			10,558
Purchase accounting adjustment		457
Envestnet
Changes in the carrying amount of the Company's goodwill
Balance		163,751	135,224
Other			(490)
Balance		163,751	163,751
Envestnet | Castle Rock Innovations, Inc.
Changes in the carrying amount of the Company's goodwill
Purchase accounting adjustment			(388)
Envestnet | Yodlee, Inc
Changes in the carrying amount of the Company's goodwill
Purchase accounting adjustment	$ 24,613		24,613
Envestnet | FinaConnect, Inc.
Changes in the carrying amount of the Company's goodwill
Acquisition			4,792
Envestnet | Yodlee
Changes in the carrying amount of the Company's goodwill
Balance		268,185	286,049
Other			(189)
Balance		269,204	268,185
Envestnet | Yodlee | Yodlee, Inc
Changes in the carrying amount of the Company's goodwill
Purchase accounting adjustment			(28,233)
Envestnet | Yodlee | Wheelhouse Analytics, LLC
Changes in the carrying amount of the Company's goodwill
Acquisition			$ 10,558
Purchase accounting adjustment		$ 457

Goodwill & Intangible Assets (A

Goodwill & Intangible Assets (Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the carrying amount of the Company's goodwill
Balance	$ 431,936	$ 421,273
Foreign currency translation	562
Other		(679)
Balance	432,955	431,936	$ 421,273
Gross Carrying Amount	352,567	353,267
Accumulated Amortization	(129,836)	(87,709)
Net Carrying Amount	222,731	265,558
Write-off of fully amortized intangible assets	0	4,159
Amortization expense	42,127	45,515	17,636
Customer lists
Changes in the carrying amount of the Company's goodwill
Gross Carrying Amount	259,350	259,490
Accumulated Amortization	(78,482)	(54,861)
Net Carrying Amount	$ 180,868	204,629
Customer lists | Minimum
Changes in the carrying amount of the Company's goodwill
Estimated Useful Life	7 years
Customer lists | Maximum
Changes in the carrying amount of the Company's goodwill
Estimated Useful Life	15 years
Proprietary technologies
Changes in the carrying amount of the Company's goodwill
Gross Carrying Amount	$ 57,377	57,770
Accumulated Amortization	(31,067)	(20,214)
Net Carrying Amount	$ 26,310	37,556
Proprietary technologies | Minimum
Changes in the carrying amount of the Company's goodwill
Estimated Useful Life	4 years
Proprietary technologies | Maximum
Changes in the carrying amount of the Company's goodwill
Estimated Useful Life	8 years
Trade names
Changes in the carrying amount of the Company's goodwill
Gross Carrying Amount	$ 24,840	25,007
Accumulated Amortization	(9,701)	(6,178)
Net Carrying Amount	$ 15,139	18,829
Trade names | Minimum
Changes in the carrying amount of the Company's goodwill
Estimated Useful Life	1 year
Trade names | Maximum
Changes in the carrying amount of the Company's goodwill
Estimated Useful Life	7 years
Backlog
Changes in the carrying amount of the Company's goodwill
Estimated Useful Life	4 years
Gross Carrying Amount	$ 11,000	11,000
Accumulated Amortization	(10,586)	(6,456)
Net Carrying Amount	414	4,544
Envestnet
Changes in the carrying amount of the Company's goodwill
Balance	163,751	135,224
Other		(490)
Balance	163,751	163,751	135,224
Envestnet | Yodlee
Changes in the carrying amount of the Company's goodwill
Balance	268,185	286,049
Foreign currency translation	562
Other		(189)
Balance	$ 269,204	$ 268,185	$ 286,049

Goodwill and Intangible Asset65

Goodwill and Intangible Assets (FutExp) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Future amortization expense of the intangible assets
2,018	$ 35,807
2,019	31,288
2,020	28,344
2,021	20,638
2,022	19,015
Thereafter	87,639
Net Carrying Amount	$ 222,731	$ 265,558

Other Non-Current Assets (Detai

Other Non-Current Assets (Details) - USD ($) $ in Thousands	Nov. 01, 2016	Sep. 30, 2017	Jul. 31, 2017	Apr. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets to fund deferred compensation liability					$ 5,185	$ 2,738
Deposits:
Lease					4,291	4,262
Other					615	2,083
Unamortized issuance costs on revolving credit facility					3,106
Investments in private companies					2,731	2,750
Other					1,248	2,130
Total other non-current assets					17,176	13,963
Upfront consideration					$ 445
Carrying value of investment						0
Ownership interest (as a percent)					50.00%
Other Income
Deposits:
Impairment loss						734
Class B units
Deposits:
Units owned					756,347
Historical purchase price					$ 1,250
Number of shares purchased			738,463	150,000
Upfront consideration			$ 738	$ 1,500
Company's share of loss						$ 1,420	$ 84
Ownership interest (as a percent)			16.20%	10.30%
Class A units
Deposits:
Number of shares purchased	1,500,000	1,450,000
Upfront consideration	$ 1,500	$ 1,450
Company's share of loss					$ 1,469
Ownership interest (as a percent)	21.40%	34.50%
Class A units | Maximum
Deposits:
Ownership interest (as a percent)					50.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 15, 2014
Fair Value Measurements
Convertible Debt, Noncurrent	$ 158,990	$ 152,575
Term Notes		100,409
Other non-current assets
Assets
Total Assets	5,185
Level 1 | Recurring Basis
Assets
Total Assets	39,400	31,644
Liabilities
Total liabilities	4,364	2,885
Level 1 | Recurring Basis | Deferred compensation liability
Liabilities
Total liabilities	4,364	2,885
Level 1 | Recurring Basis | Money market funds
Assets
Total Assets	39,400	31,644
Level 3 | Recurring Basis
Assets
Total Assets	5,185	2,738
Liabilities
Total liabilities	2,781	4,868
Level 3 | Recurring Basis | Contingent consideration
Liabilities
Total liabilities	2,781	4,868
Level 3 | Recurring Basis | Asset to fund deferred compensation liability
Assets
Total Assets	5,185	2,738
Fair Value | Recurring Basis
Assets
Total Assets	44,585	34,382
Liabilities
Total liabilities	7,145	7,753
Fair Value | Recurring Basis | Contingent consideration
Liabilities
Total liabilities	2,781	4,868
Fair Value | Recurring Basis | Deferred compensation liability
Liabilities
Total liabilities	4,364	2,885
Fair Value | Recurring Basis | Money market funds
Assets
Total Assets	39,400	31,644
Fair Value | Recurring Basis | Asset to fund deferred compensation liability
Assets
Total Assets	5,185	2,738
Convertible Notes
Fair Value Measurements
Face amount	172,500	172,500	$ 172,500
Convertible Debt, Noncurrent	158,990	152,575
Liabilities
Total liabilities	180,180	164,824
Convertible Notes | Carrying Value
Fair Value Measurements
Convertible Debt, Noncurrent	158,990	152,575
Term Notes
Fair Value Measurements
Face amount		142,000
Term Notes		138,335
Revolving credit facility
Liabilities
Total liabilities	$ 81,168	$ 0

Fair Value Measurements (Lev3 r

Fair Value Measurements (Lev3 rec) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Changes in the fair value of Contingent Consideration Liabilities
Fair value asset transfers between Levels 1, 2 and 3	$ 0
Recurring Basis
Changes in the fair value of Contingent Consideration Liabilities
Balance	4,868
Settlement of contingent consideration liability	(2,286)
Contingent consideration adjustment	(218)
Accretion on contingent consideration	417
Balance	2,781
Reconciliation of assets to fund deferred compensation liability
Balance	2,738
Contributions and fair value adjustments	2,447
Balance	$ 5,185

Accrued Expenses and Other Li69

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Components of accrued expenses
Accrued compensation and related taxes	$ 43,724	$ 35,287
Accrued investment manager fees	39,324	31,278
Sales and use tax payable	9,037	10,108
Accrued professional services	4,985	3,213
Definite consideration	1,250	445
Other accrued expenses	7,577	7,432
Total accrued expenses	$ 105,897	$ 87,763

Debt (Summary) (Details)

Debt (Summary) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 15, 2014
Outstanding debt obligations
Unamortized issuance costs	$ (3,106)
Convertible Notes carrying value	158,990	$ 152,575
Term notes		100,409
Revolving credit facility balance	81,168
Other non-current assets	17,176	13,963
Prepaid expenses and other current assets	19,470	16,224
Convertible Notes
Outstanding debt obligations
Face amount and over allotments			$ 172,500
Face amount	172,500	172,500	172,500
Unaccredited discount on Convertible Notes	(11,677)	(17,149)	$ (27,500)
Unamortized issuance costs	(1,833)	(2,776)
Convertible Notes carrying value	158,990	152,575
Term Notes
Outstanding debt obligations
Face amount and over allotments	0	142,000
Face amount		142,000
Unamortized issuance costs		(3,665)
Term notes		$ 138,335
Credit Agreement
Outstanding debt obligations
Revolving credit facility balance	$ 81,168

Debt (Int) (Details)

Debt (Int) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest expense on convertible debt
Total interest expense	$ 8,994	$ 8,244	$ 10,271
Convertible Notes, Credit and Amended and Restated Credit Agreements
Interest expense on convertible debt
Coupon interest	3,019	3,019	3,019
Amortization of issuance costs	3,279	2,875	1,462
Accretion of debt discount	5,472	5,237	4,932
Interest on credit agreement	4,153	5,128	606
Undrawn and other fees	424	341	252
Total interest expense	16,347	16,600	10,271
Convertible Notes
Interest expense on convertible debt
Accretion of debt discount	$ 5,472	$ 5,237	$ 4,932

Debt (CredAg) (Details)

Debt (CredAg) (Details) - USD ($) $ in Thousands	Nov. 19, 2015	Dec. 31, 2017	Jul. 18, 2017	Dec. 31, 2016	Jun. 19, 2014
Debt
Amount outstanding		$ 81,168
Credit Agreement
Debt
Credit facility amount					$ 70,000
Voting equity of foreign subsidiary pledged (as a percent)	66.00%
Non-voting equity of foreign subsidiary pledged (as a percent)	100.00%
Commitment fee		0.25%
Amount outstanding		$ 81,168
Credit Agreement | Other non-current assets
Debt
Debt issuance cost, outstanding		3,106
Term Notes
Debt
Face amount				$ 142,000
Second Amended and Restated Credit Agreement
Debt
Credit facility amount			$ 350,000
Right to increase credit facility, amount			50,000
Second Amended and Restated Credit Agreement | Prepaid expense and other current assets
Debt
Debt issuance cost, outstanding		$ 855
Letters of credit
Debt
Credit facility amount			$ 5,000		$ 5,000
Minimum | Credit Agreement | LIBOR
Debt
Spread on variable rate basis (as a percent)	1.50%
Maximum | Credit Agreement | LIBOR
Debt
Spread on variable rate basis (as a percent)	3.25%

Debt (Conv) (Details)

Debt (Conv) (Details) - Convertible Notes $ / shares in Units, $ in Thousands	Dec. 15, 2014USD ($)item$ / shares	Dec. 31, 2017USD ($)$ / shares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Debt
Face amount	$ 172,500	$ 172,500	$ 172,500
Net proceeds from offering	$ 166,967
Interest rate (as a percent)	1.75%	1.75%
Repurchase percentage of principal (as a percent)	100.00%
Conversion rate	0.0159022
Principal amount | $ / shares	$ 1,000
Conversion price (in dollars per share) | $ / shares	$ 62.88	$ 62.88
Threshold trading days (in days) | item	20
Consecutive trading days | item	30
Threshold percentage of stock price trigger (as a percent)	130.00%
Threshold business days	5 days
Threshold consecutive trading-day period	5 days
Threshold percentage of trading price trigger (as a percent)	98.00%
Allocated to equity components	$ 26,618
Offering costs	882
Discount	$ 27,500	$ 11,677	17,149
Accretion of debt discount		$ 5,472	$ 5,237	$ 4,932
Effective interest rate (as a percent)		6.00%	6.00%	6.00%
Other non-current assets
Debt
Issuance costs					$ 4,651

Other Non-Current Liabilities74

Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Other Non-Current Liabilities
Uncertain tax positions	$ 10,640	$ 7,762
Accrued deferred compensation	4,364	2,885
Other	98	1,539
Accrued purchase liability		1,250
Other non-current liabilities	$ 15,102	$ 13,436

Income Taxes (Inc) (Details)

Income Taxes (Inc) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of Income before income tax provision
Domestic	$ (9,387)	$ (47,059)	$ 7,059
Foreign	7,698	6,569	1,929
Income (loss) before income tax provision	$ (1,689)	$ (40,490)	$ 8,988

Income Taxes (Exp) (Details)

Income Taxes (Exp) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ (1,201)	$ 3,812	$ 12,731
State	951	1,172	1,644
Foreign	6,438	4,509	685
Current income tax provision	6,188	9,493	15,060
Deferred:
Federal	(4,439)	5,992	(9,384)
State	146	117	(1,288)
Foreign	(304)	(525)	164
Deferred Total	(4,597)	5,584	(10,508)
Income tax provision	$ 1,591	$ 15,077	$ 4,552

Income Taxes (Deferred) (Detail

Income Taxes (Deferred) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets
Deferred revenue	$ 5,723		$ 5,723	$ 6,309
Prepaid expenses and accruals	1,459		1,459	1,363
Deferred rent and lease incentives	3,419		3,419	3,940
Net operating loss and tax credit carryforwards	66,896		66,896	100,471
Property and equipment and intangible assets	(51,182)		(51,182)	(90,222)
Stock-based compensation expense	6,894		6,894	10,641
Convertible notes	(2,886)		(2,886)	(6,346)
Other	1,221		1,221	(2,101)
Total deferred tax assets	31,544		31,544	24,055
Less valuation allowance	(32,513)		(32,513)	(29,610)
Net deferred tax (liabilities)	(969)		(969)	(5,555)
Valuation allowance related to capital losses	32,513		32,513
Foreign earnings, tax liability				4,500
Foreign earnings	$ 20,600		$ 20,600
U.S. federal corporate income tax rate (as a percent)	35.00%
Refund period			5 years
AMT credits			$ 1,330
Income Tax Expense (Benefit)			1,591	$ 15,077	$ 4,552
Benefit			810
Deferred tax asset			$ 2,459
Minimum
Deferred Tax Assets
Percentage of sequestration charge			6.00%
Maximum
Deferred Tax Assets
Percentage of sequestration charge			7.00%
Forecast
Deferred Tax Assets
U.S. federal corporate income tax rate (as a percent)		21.00%

Income Taxes (RateRec) (Details

Income Taxes (RateRec) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of expected tax provision
Tax provision (benefit), at U.S. federal statutory tax rate	$ (573)	$ (13,767)	$ 3,056
State income tax, net of federal tax provision	(1,251)	(2,053)	247
Effect of stock-based compensation excess tax benefit	(11,522)
Effects of permanent items	1,145	1,773	1,899
Change in valuation allowance	2,151	26,269	841
Effect of change in federal income tax rate	13,792
Effect of change in state income tax rate	537	279	283
Uncertain tax positions	3,668	2,024	(859)
Research and development credits	(2,815)	(2,758)	(1,914)
Change in permanent reinvestment assertion	(4,494)
State net operating loss adjustment, net of valuation allowance impact	836
Other	117	3,310	999
Income tax provision	$ 1,591	$ 15,077	$ 4,552

Income Taxes (NOL) (Details)

Income Taxes (NOL) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Federal
Operating Loss Carryforwards
NOL carryforwards	$ 249,653
Federal | Research and development
Operating Loss Carryforwards
Tax credit carryforward	10,430
State
Operating Loss Carryforwards
NOL carryforwards	143,775
State | Alternative minimum
Operating Loss Carryforwards
Tax credit carryforward	21
State | Research and development
Operating Loss Carryforwards
Tax credit carryforward	8,103
Foreign
Operating Loss Carryforwards
Tax credit carryforward	$ 2,459
Minimum
Operating Loss Carryforwards
AMT credits refundable , Percent	50.00%
Maximum
Operating Loss Carryforwards
AMT credits refundable , Percent	100.00%

Income Taxes (Unrec) (Details)

Income Taxes (Unrec) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of unrecognized tax benefit
Unrecognized tax benefits balance at beginning of year	$ 16,476	$ 14,129	$ 2,092
Additions based on tax positions related to the current year	1,691	1,153	576
Additions based on tax positions related to prior years	145	1,257
Additions based on tax positions for acquired entities			12,780
Reductions for settlements with taxing authorities			(1,120)
Reductions for lapses of statute of limitations		(63)	(199)
Unrecognized tax benefits balance at end of year	18,312	16,476	$ 14,129
Unrecognized tax benefits that would impact effective tax rate, if recognized	18,312
Potential interest and penalties related to unrecognized tax benefits included in income tax expense	1,690	880
Accrued interest and penalties on unrecognized tax benefits	$ 6,018	$ 4,328

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 19, 2015	Nov. 17, 2015	May 06, 2015	Dec. 31, 2017	Dec. 31, 2016	Feb. 25, 2016
Stockholders' equity
Shares authorized for repurchase						2,000,000
Common stock repurchased				0	43,610
Remaining shares authorized for repurchase				1,956,390	1,956,390
Finance Logix
Stockholders' equity
Stock consideration			$ 8,930
Yodlee, Inc
Stockholders' equity
Consideration issued (in shares)	5,974,000	5,974,000
Stock consideration	$ 186,522
Equity value issued (in dollars per share)		$ 17.49
Common Stock | Finance Logix
Stockholders' equity
Consideration issued (in shares)			123,410
Stock consideration			$ 6,388
Stock Options | Finance Logix
Stockholders' equity
Consideration issued (in shares)			123,410
Stock consideration			$ 2,542
Equity value issued (in dollars per share)			$ 52.67

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	Jun. 22, 2010	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jul. 13, 2017
Stock-Based compensation
Maximum number of shares available for future issuance		3,960,729
Unvested restricted stock units and awards
Stock-Based compensation
Unrecognized compensation expense related to shares		$ 42,250
Awards		959,591	1,009,661	1,508,796
2004 Plan
Stock-Based compensation
Share-based awards, contractual term		10 years
2010 Plan
Stock-Based compensation
Maximum number of shares available for future issuance					3,525,000
Share-based awards, contractual term	10 years
Shares reserved for delivery	2,700,000
2012 Plan
Stock-Based compensation
Shares authorized for issuance		1,023,851
2012 Plan | Target Incentive Awards
Stock-Based compensation
Shares authorized for issuance		559,551
Unvested restricted stock, service condition period		2 years
2012 Plan | Target Incentive Awards | Minimum
Stock-Based compensation
Vesting rights		P3Y
2012 Plan | Target Incentive Awards | Maximum
Stock-Based compensation
Vesting rights		P5Y
2015 Plan
Stock-Based compensation
Shares authorized for issuance		1,058,807
Awards		0

Stock-Based Compensation (Exp)

Stock-Based Compensation (Exp) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of employee stock-based compensation expense
Stock-based compensation expense		$ 31,331	$ 33,276	$ 15,161
Tax effect on stock-based compensation expense		(11,906)	(13,001)	(7,678)
Net effect on income		$ 19,425	$ 20,275	$ 7,483
Statutory rate (as a percent)	35.00%

Stock-Based Compensation (Assum

Stock-Based Compensation (Assump) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of weighted average assumptions used to value options granted
Grant date fair value of options (in dollars per share)	$ 14.51	$ 9.56	$ 19.06
Volatility (as a percent)	43.80%	42.20%	37.80%
Risk-free interest rate (as a percent)	2.10%	1.40%	1.80%
Expected term (in years)	6 years 3 months 18 days	6 years 3 months 18 days	6 years

Stock-Based Compensation (Optio

Stock-Based Compensation (Options) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised	$ 29,562	$ 14,165	$ 37,879
Cash received from exercises of stock options	7,951	4,924	8,279
Cash received from issuance of restricted stock	$ 5	$ 6	$ 2
Weighted-Average Remaining Contractual Life
Outstanding	4 years 3 months 18 days	4 years 3 months 18 days	4 years 8 months 12 days	4 years 8 months 12 days
Options exercisable	3 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding (in dollars)	$ 69,939	$ 63,264	$ 61,199	$ 163,830
Options exercisable (in dollars)	$ 66,291
Stock options
Options
Outstanding at the beginning of the period (in shares)	3,033,194	3,533,791	4,265,337
Granted (in shares)	75,238	163,864	358,087
Exercised (in shares)	(837,857)	(598,382)	(1,047,911)
Forfeited (in shares)	(16,010)	(66,079)	(41,722)
Outstanding at the end of the period (in shares)	2,254,565	3,033,194	3,533,791	4,265,337
Options exercisable (in shares)	2,041,660
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 16.33	$ 15.03	$ 10.73
Granted (in dollars per share)	31.70	22.38	48.38
Exercised (in dollars per share)	9.49	8.23	7.90
Forfeited (in dollars per share)	37.42	35.08	41.10
Outstanding at the end of the period (in dollars per share)	19.23	16.33	15.03	$ 10.73
Options exercisable (in dollars per share)	17.74
Aggregate Intrinsic Value
Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding Intrinsic Value Per Share	$ 49.85	$ 35.25	$ 29.85
Additional disclosures
Unrecognized stock-based compensation expense related to unvested stock options	$ 1,891
Unrecognized compensation expense weighted-average recognition period	1 year 8 months 12 days
Stock options | Minimum
Additional disclosures
Exercise prices of stock options outstanding (in dollars per share)	$ 7.15
Stock options | Maximum
Additional disclosures
Exercise prices of stock options outstanding (in dollars per share)	$ 55.29

Stock-Based Compensation (ResSt

Stock-Based Compensation (ResSt) (Details) $ / shares in Units, $ in Thousands	Nov. 19, 2015USD ($)shares	Aug. 31, 2016itemshares	May 31, 2016itemshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares
Additional disclosures
Attribution of the fair market value of replacement awards | $						$ 4,318
Yodlee, Inc
Additional disclosures
Stock consideration | $	$ 186,522
Attribution of the fair market value of replacement awards | $	$ 4,318
Restricted Stock Units | Yodlee, Inc
Number of Shares
Granted (in shares)	1,052,000
Additional disclosures
Unrecognized compensation expense related to shares | $	$ 28,518			$ 4,719
Unrecognized compensation expense weighted-average recognition period	43 months
Stock consideration | $	$ 32,836
Attribution of the fair market value of replacement awards | $	$ 4,318
Unvested restricted stock units and awards
Number of Shares
Balance at the beginning of the period (in shares)				1,894,759	2,153,211	1,098,674
Granted (in shares)				959,591	1,009,661	1,508,796
Vested (in shares)				(969,513)	(1,082,206)	(434,292)
Forfeited (in shares)				(118,198)	(185,907)	(19,967)
Balance at the end of the period (in shares)				1,766,639	1,894,759	2,153,211
Weighted-Average Grant Date Fair Value per Share
Balance at the beginning of the period (in dollars per share) | $ / shares				$ 30.40	$ 35.63	$ 33.72
Granted (in dollars per share) | $ / shares				32.38	28.82	34.55
Vested (in dollars per share) | $ / shares				31.51	29.12	29.26
Forfeited (in dollars per share) | $ / shares				30.11	30.96	38.58
Balance at the end of the period (in dollars per share) | $ / shares				$ 32.48	$ 30.40	$ 35.63
Additional disclosures
Unrecognized compensation expense related to shares | $				$ 42,250
Unrecognized compensation expense weighted-average recognition period				1 year 9 months 18 days
Stock options
Additional disclosures
Unrecognized compensation expense weighted-average recognition period				1 year 8 months 12 days
Restricted stock with performance and subsequent service conditions
Stock-Based compensation
Number of executive officers who received performance based awards | item		4	3
Number of Shares
Granted (in shares)		125,000	205,000
Replacement Awards | Yodlee, Inc
Number of Shares
Granted (in shares)	1,052,000

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 15, 2014
Basic income (loss) per share calculation:
Net income (loss) attributable to Envestnet, Inc.	$ 17,645	$ (1,320)	$ (6,470)	$ (13,135)	$ (32,574)	$ (4,057)	$ (7,943)	$ (10,993)	$ (3,280)	$ (55,567)	$ 4,436
Basic number of weighted-average shares outstanding									43,732,148	42,814,222	36,500,843
Diluted income (loss) per share calculation:
Net income (loss) attributable to Envestnet, Inc.									$ (3,280)	$ (55,567)	$ 4,436
Effect of dilutive shares:
Options to purchase common stock (in shares)											1,700,248
Restricted stock (in shares)											185,782
Diluted number of weighted-average shares outstanding									43,732,148	42,814,222	38,386,873
Net loss per share attributable to Envestnet, Inc.
Basic (in dollars per share)	$ 0.40	$ (0.03)	$ (0.15)	$ (0.30)	$ (0.75)	$ (0.09)	$ (0.19)	$ (0.26)	$ (0.08)	$ (1.30)	$ 0.12
Diluted (in dollars per share)	0.38	$ (0.03)	$ (0.15)	$ (0.30)	$ (0.75)	$ (0.09)	$ (0.19)	$ (0.26)	(0.08)	$ (1.30)	$ 0.12
Convertible Notes
Conversion price (in dollars per share)	$ 62.88								$ 62.88			$ 62.88

Net Income (Loss) Per Share (88

Net Income (Loss) Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares)	6,764,525	7,671,274	3,383,281
Stock options
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares)	2,254,565	3,033,194	297,343
Unvested restricted stock units and awards
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares)	1,766,639	1,894,759	210,233
Convertible Notes | Convertible Notes
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares)	2,743,321	2,743,321	2,743,321
Upside Holdings, Inc. | Unvested restricted stock units and awards
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares)			132,384

Major Customers (Details)

Major Customers (Details) - customer	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Major Customers
Revenue as a percentage of the company's total	22.00%	19.00%	18.00%
Revenues | Customer concentration risk | Fidelity
Major Customers
Number of customers accounted for as major customer	1	1	1
Revenue as a percentage of the company's total	17.00%	15.00%	18.00%

Commitments and Contingencies90

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Commitments and Contingencies
Number of previous claims experienced | item	0
Rent expense	$ 18,084	$ 14,984	$ 8,893
Future minimum unconditional purchase obligations
Estimated future minimum unconditional purchase obligations	27,425
Sales and use tax liability	8,522	10,108
Sales and use tax receivable	$ 2,704	$ 3,879

Commitments and Contingencies91

Commitments and Contingencies (Leases) (Details) $ in Thousands	Dec. 31, 2017USD ($)
Future annual minimum lease commitments under operating leases
2,018	$ 14,104
2,019	14,721
2,020	14,572
2,021	13,986
2,022	10,349
Thereafter	43,406
Total	$ 111,138

Benefit Plan (Details)

Benefit Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Benefit Plan
Voluntary employer matching contributions	$ 4,038	$ 2,270	$ 1,521

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)customer	Dec. 31, 2016USD ($)customer	Dec. 31, 2015USD ($)customer
Segment Information
Assets under management or administration									$ 410,016	$ 352,498	$ 333,684
Subscription and licensing									245,867	198,125	75,280
Professional services and other									27,796	27,541	11,955
Revenues	$ 182,862	$ 175,614	$ 167,417	$ 157,786	$ 155,480	$ 149,155	$ 141,708	$ 131,821	$ 683,679	$ 578,164	$ 420,919
Fidelity revenue as a percentage of Envestnet segment revenue									22.00%	19.00%	18.00%
Income (loss) from operations	12,683	4,348	2,743	(3,354)	(3,063)	(1,291)	(6,330)	(12,760)	$ 16,420	$ (23,444)	$ 18,992
Operating expenses									(667,259)	(601,608)	(401,927)
Interest expense, net									(16,146)	(16,563)	(9,933)
Other expense, net									(1,963)	(483)	(71)
Income (loss) before income tax provision									(1,689)	(40,490)	8,988
Income tax provision									1,591	15,077	4,552
Net income (loss)									(3,280)	(55,567)	4,436
Net income (loss) attributable to Envestnet, Inc	17,645	$ (1,320)	$ (6,470)	$ (13,135)	(32,574)	$ (4,057)	$ (7,943)	$ (10,993)	(3,280)	(55,567)	4,436
Assets	862,052				872,401				862,052	872,401
Depreciation and amortization									62,820	63,999	27,962
Capital expenditures									27,569	22,576	14,716
Operating Segments
Segment Information
Income (loss) from operations									55,993	3,131	40,294
Segment Reconciling
Segment Information
Operating expenses									(39,573)	(26,575)	(21,302)
Intersegment Eliminations
Segment Information
Revenues									0
Envestnet
Segment Information
Assets under management or administration									410,016	352,498	333,684
Subscription and licensing									106,048	84,340	63,719
Professional services and other									11,841	10,794	9,435
Revenues									527,905	447,632	406,838
Assets	353,048				341,602				353,048	341,602
Depreciation and amortization									26,223	24,784	23,369
Capital expenditures									22,434	17,120	13,682
Envestnet | Operating Segments
Segment Information
Income (loss) from operations									75,449	41,678	43,278
Envestnet | Yodlee
Segment Information
Subscription and licensing									139,819	113,785	11,561
Professional services and other									15,955	16,747	2,520
Revenues									155,774	130,532	14,081
Assets	$ 509,004				$ 530,799				509,004	530,799
Depreciation and amortization									36,597	39,215	4,593
Capital expenditures									5,135	5,456	1,034
Envestnet | Yodlee | Operating Segments
Segment Information
Income (loss) from operations									$ 19,456	$ 38,547	$ 2,984
Revenues | Customer concentration risk | Fidelity
Segment Information
Number of customers accounted for as major customer | customer									1	1	1
Fidelity revenue as a percentage of Envestnet segment revenue									17.00%	15.00%	18.00%

Geographical Information (Detai

Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 182,862	$ 175,614	$ 167,417	$ 157,786	$ 155,480	$ 149,155	$ 141,708	$ 131,821	$ 683,679	$ 578,164	$ 420,919
Property, Plant and Equipment, Net	35,909				33,000				35,909	33,000
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									617,835	519,998	388,098
Property, Plant and Equipment, Net	30,647				28,713				30,647	28,713
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									65,844	58,166	$ 32,821
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, Plant and Equipment, Net	4,907				3,596				4,907	3,596
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, Plant and Equipment, Net	$ 355				$ 691				$ 355	$ 691

Net Capital Requirements (Detai

Net Capital Requirements (Details) $ in Thousands	Dec. 31, 2017USD ($)
Net Capital Requirements
SEC rule, maximum net capital ratio	15
SEC rule, restrictions on equity and dividends, maximum net capital ratio	10
Net capital of the company (in dollars)	$ 1,238
Excess of net capital (in dollars)	1,138
Required net capital (in dollars)	$ 100
Company's net capital ratio	0.05

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	Jan. 02, 2018	Dec. 31, 2017
Subsequent Events
Cash consideration		$ 445
Subsequent Event | FolioDynamix
Subsequent Events
Cash consideration	$ 195,000,000

Quarterly Financial Data (Una97

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Data (Unaudited)
Total revenues	$ 182,862	$ 175,614	$ 167,417	$ 157,786	$ 155,480	$ 149,155	$ 141,708	$ 131,821	$ 683,679	$ 578,164	$ 420,919
Income (loss) from operations	12,683	4,348	2,743	(3,354)	(3,063)	(1,291)	(6,330)	(12,760)	16,420	(23,444)	18,992
Net income (loss) attributable to Envestnet, Inc.	$ 17,645	$ (1,320)	$ (6,470)	$ (13,135)	$ (32,574)	$ (4,057)	$ (7,943)	$ (10,993)	$ (3,280)	$ (55,567)	$ 4,436
Net income (loss) per share:
Basic (in dollars per share)	$ 0.40	$ (0.03)	$ (0.15)	$ (0.30)	$ (0.75)	$ (0.09)	$ (0.19)	$ (0.26)	$ (0.08)	$ (1.30)	$ 0.12
Diluted (in dollars per share)	$ 0.38	$ (0.03)	$ (0.15)	$ (0.30)	$ (0.75)	$ (0.09)	$ (0.19)	$ (0.26)	$ (0.08)	$ (1.30)	$ 0.12