Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Reconciliation of segment information to the totals reported in the accompanying consolidated financial statements

The tables below set forth information about the Company’s reportable operating segments for the three and six months ended June 30, 2023 and 2022, along with the items necessary to reconcile the segment information to the totals reported in the accompanying condensed consolidated financial statements.


	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except percentages)	2023			2022			2023			2022
Digital Agreements
Revenue	$	11,862		$	10,454		$	23,414		$	23,755
Gross profit	$	8,583		$	7,647		$	17,031		$	17,933
Gross margin	72		%	73		%	73		%	75		%
Operating income (loss) (1)	$	(7,121)		$	(462)		$	(13,154)		$	664

Security Solutions
Revenue	$	43,871		$	42,336		$	89,926		$	81,482
Gross profit	$	25,711		$	27,859		$	56,549		$	54,251
Gross margin	59		%	66		%	63		%	67		%
Operating income (2)	$	8,523		$	7,999		$	24,154		$	15,688

Total Company:
Revenue	$	55,733		$	52,790		$	113,340		$	105,237
Gross profit	$	34,294		$	35,506		$	73,580		$	72,184
Gross margin	62		%	67		%	65		%	69		%

Statements of Operations reconciliation:
Segment operating income	$	1,402		$	7,537		$	11,000		$	16,352
Corporate operating expenses not allocated at the segment level	(19,166)			(15,775)			(36,894)			(33,833)
Operating loss	$	(17,764)		$	(8,238)		$	(25,894)		$	(17,481)
Interest income, net	585			35			1,088			18
Other income (expense), net	29			(675)			(11)			14,972
Loss before income taxes	$	(17,150)		$	(8,878)		$	(24,817)		$	(2,491)

(1) Digital Agreements operating income includes $0.6 million of amortization of intangible assets expense for
the three months ended June 30, 2023 and 2022, respectively and $1.1 million of amortization of intangible assets
expense for the six months ended June 30, 2023 and 2022, respectively.

(2) Security Solutions operating income includes $0 million and $0.6 million of amortization of intangible assets expense for the three months ended June 30, 2023 and 2022, respectively, and $0 and $1.5 million of amortization of intangible assets expense for the six months ended June 30, 2023 and 2022, respectively.

Reconciliation of the disaggregated revenues to revenues from our two operating segments

The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company’s two reportable operating segments for the three and six months ended June 30, 2023 and 2022:


	Three Months Ended June 30,
	2023				2022
	Digital Agreements		Security Solutions		Digital Agreements		Security Solutions
(In thousands)
Subscription	$	10,486	$	12,499	$	8,736	$	11,093
Maintenance and support	1,130		10,473		1,408		10,770
Professional services and other (1)	246		1,253		310		1,690
Hardware products	—		19,646		—		18,783
Total Revenue	$	11,862	$	43,871	$	10,454	$	42,336


	Six Months Ended June 30,
	2023				2022
	Digital Agreements		Security Solutions		Digital Agreements		Security Solutions
(In thousands)
Subscription	$	20,834	$	32,107	$	20,407	$	22,691
Maintenance and support	2,126		20,638		2,760		21,364
Professional services and other (1)	454		2,669		588		3,293
Hardware products	—		34,512		—		34,134
Total Revenue	$	23,414	$	89,926	$	23,755	$	81,482

(1) Professional services and other includes perpetual software licenses revenue, which was less than 2% of total revenue for the three and six months ended June 30, 2023 and 2022, respectively.