Segment Information (Tables)

9 Months Ended

Sep. 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 nine months ended September 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 September 30,						Nine Months Ended September 30,
(In thousands, except percentages)	2023			2022			2023			2022
Digital Agreements
Revenue	$	13,012		$	12,200		$	36,426		$	35,955
Gross profit	$	9,808		$	9,736		$	26,839		$	27,669
Gross margin	75		%	80		%	74		%	77		%
Operating income (loss) (1)	$	(4,666)		$	2,160		$	(17,820)		$	2,823

Security Solutions
Revenue	$	45,826		$	44,947		$	135,752		$	126,429
Gross profit	$	30,861		$	28,695		$	87,410		$	82,946
Gross margin	67		%	64		%	64		%	66		%
Operating income (2)	$	15,673		$	5,711		$	39,827		$	21,399

Total Company:
Revenue	$	58,838		$	57,147		$	172,178		$	162,384
Gross profit	$	40,669		$	38,431		$	114,249		$	110,615
Gross margin	69		%	67		%	66		%	68		%

Statements of Operations reconciliation:
Segment operating income	$	11,007		$	7,871		$	22,007		$	24,222
Corporate operating expenses not allocated at the segment level	15,801			13,496			52,695			47,328
Operating loss	$	(4,794)		$	(5,625)		$	(30,688)		$	(23,106)
Interest income, net	587			179			1,675			197
Other income (expense), net	353			(1,155)			342			13,817
Loss before income taxes	$	(3,854)		$	(6,601)		$	(28,671)		$	(9,092)

(1) Digital Agreements operating income includes $0.6 million of amortization of intangible assets expense for the three months ended both September 30, 2023 and 2022 and $1.7 million of amortization of intangible assets expense for the nine months ended both September 30, 2023 and 2022.

(2) Security Solutions operating income includes $0 and $0.4 million of amortization of intangible assets expense for the three months ended September 30, 2023 and 2022, respectively, and $0 and $1.8 million of amortization of intangible assets expense for the nine months ended September 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 nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,
	2023				2022
	Digital Agreements		Security Solutions		Digital Agreements		Security Solutions
(In thousands)
Subscription	$	11,807	$	14,378	$	10,321	$	11,941
Maintenance and support	995		11,276		1,693		11,158
Professional services and other (1)	210		1,333		186		2,034
Hardware products	—		18,839		—		19,814
Total Revenue	$	13,012	$	45,826	$	12,200	$	44,947


	Nine Months Ended September 30,
	2023				2022
	Digital Agreements		Security Solutions		Digital Agreements		Security Solutions
(In thousands)
Subscription	$	32,641	$	46,485	$	30,728	$	34,632
Maintenance and support	3,121		31,914		4,453		32,522
Professional services and other (1)	664		4,002		774		5,327
Hardware products	—		53,351		—		53,948
Total Revenue	$	36,426	$	135,752	$	35,955	$	126,429

(1) Professional services and other includes perpetual software licenses revenue, which was less than 2% of total revenue for the three and nine months ended September 30, 2023, respectively, and less than 3% of total revenue for the three and nine months ended September 30, 2022, respectively.