Note 12 - Segment Reporting

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

The Company provides business process outsourcing services (“BPO”) to clients in various industries and geographical locations. Our approach is focused on providing our clients with the best possible combination of services and delivery locations to meet our clients' needs in the best and most efficient manner. Our Global Chief Executive Officer (CEO) who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a geographical basis.

Our operating business model is focused on the geographies in which we operate. Our CODM reviews the performance and makes resource allocation geography-wise, hence the geographical level represents the operating segments of Startek Inc.

We report our results of operations in six reportable segments, as follows:

a) Americas
b) India and Sri Lanka
c) Malaysia 
d) Middle East 
e) Argentina & Peru
f) Rest of World

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Revenue
Americas		41,952		84,680		87,367		148,605
India & Sri Lanka		26,264		24,079		54,224		45,561
Malaysia		11,431		13,816		22,711		28,781
Middle East		63,054		45,714		121,741		88,954
Argentina & Peru		9,321		9,143		17,626		17,302
Rest of World		15,619		11,599		31,289		22,898
Total	$	167,641	$	189,031	$	334,958	$	352,101

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Operating income (loss)
Americas		(316	)		5,369			(2,635	)		7,264
India & Sri Lanka		1,178			2,594			4,644			1,366
Malaysia		2,579			3,414			4,605			7,828
Middle East		2,103			3,009			6,404			8,750
Argentina & Peru		(949	)		(393	)		(3,269	)		(436	)
Rest of World		917			865			2,593			1,264
Segment operating income		5,512			14,858			12,342			26,036
Startek consolidation adjustments
Private offer transaction cost		(692	)		-			(1,192	)		-
Intangible amortization		(2,581	)		(2,583	)		(5,142	)		(5,143	)
Total operating income	$	2,239		$	12,275		$	6,008		$	20,893

A single client accounted for 19% and 16% of the consolidated total net revenue during the three months ended June 30, 2022 and 2021, respectively, and 18% and 17% during the six months ended June 30, 2022 and 2021, respectively.

Property, plant and equipment, net by geography based on the location of the assets are presented below:

	As on		As on
	June 30, 2022		December 31, 2021
Property, plant and equipment, net
Americas		10,838		11,335
India & Sri Lanka		9,908		8,712
Malaysia		2,558		2,818
Middle East		5,201		7,461
Argentina & Peru		1,219		1,453
Rest of World		2,770		2,389
Total	$	32,494	$	34,168

Investment in Equity Accounted Investees

On February 25, 2021, the Company made a $25 million strategic investment in CSS Corp LP (“an Investment Limited Liability Partnership”), and the Company accounted this investment under the equity accounted investee method of accounting in accordance with ASC 323-30-S99-1. The CODM receives a partnership statement of CSS Corp LP on quarterly basis and evaluates the carrying value of the investment in equity accounted investees. The carrying value of investment as on June 30, 2022 is $35,513, Refer Note 14 for more details.