Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s businesses are based on the organizational structure used by the chief operating decision maker (“CODM”). The CODM views the Company as two businesses: Digital Media and Cybersecurity and Martech.

The accounting policies of the businesses are the same as those described in the Company’s Annual Report on Form 10-K filed with the SEC on March 15, 2021. The Company evaluates performance based on revenue, gross margin and profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses.

Information on reportable segments and reconciliation to income from operations is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenue by reportable segment:
Digital Media	$	258,700	$	253,977	$	493,527	$	480,850
Cybersecurity and Martech	78,910		87,608		159,404		172,510
Elimination of inter-segment revenues	(254)		(292)		(507)		(410)
Total segment revenues	337,356		341,293		652,424		652,950
Corporate(1)	—		—		—		—
Total revenues	337,356		341,293		652,424		652,950
Gross profit by reportable segment:
Digital Media	$	233,447	$	228,698	$	443,153	$	434,759
Cybersecurity and Martech	58,263		63,895		117,656		125,754
Elimination of inter-segment gross profit	(358)		(76)		(489)		(126)
Total segment gross profit	291,352		292,517		560,320		560,387
Corporate(1)	—		(9)		—		(74)
Total gross profit	291,352		292,508		560,320		560,313
Direct costs by reportable segment(2):
Digital Media	$	188,824	$	184,592	$	366,410	$	360,010
Cybersecurity and Martech	45,686		85,090		92,751		135,074
Elimination of inter-segment direct costs	(358)		(76)		(489)		(126)
Total segment direct costs	234,152		269,606		458,672		494,958
Corporate(1)	11,304		12,847		25,199		28,419
Total direct costs	245,456		282,453		483,871		523,377
Operating income by reportable segment:
Digital Media	$	44,623	$	44,106	$	76,743	$	74,749
Cybersecurity and Martech	12,577		(21,195)		24,905		(9,320)
Total segment operating income	57,200		22,911		101,648		65,429
Corporate(1)	(11,313)		(12,856)		(25,199)		(28,493)
Income from operations	$	45,887	$	10,055	$	76,449	$	36,936

(1)Corporate includes costs associated with general and administrative and other expenses that are managed on a global basis and that are not directly attributable to any particular segment.

(2)Direct costs for each segment include other operating expenses that are directly attributable to the segment, such as employee compensation expense, local sales and marketing expenses, engineering and network operations expense, depreciation and amortization and other administrative expenses. For the three and six months ended June 30, 2021, goodwill impairment related to our B2B Backup business is also included within direct costs for Cybersecurity and Martech.

The CODM does not use Balance Sheet and Cash Flow information in connection with operating and investment decisions other than as presented for Digital Media and Cybersecurity and Martech. Accordingly, the following segment information is presented for Digital Media and Cybersecurity and Martech.

	June 30, 2022		December 31, 2021
Assets:
Digital Media	$	2,062,499	$	2,043,204
Cybersecurity and Martech	1,090,546		1,088,741
Total assets from reportable segments	3,153,045		3,131,945
Corporate	390,050		638,335
Total assets	$	3,543,095	$	3,770,280

	Six Months Ended June 30,
	2022		2021
Capital expenditures
Digital Media	$	46,777	$	38,047
Cybersecurity and Martech	7,098		11,709
Total from reportable segments	53,875		49,756
Corporate	1		—
Capital expenditures of discontinued operations	—		8,010
Total capital expenditures	$	53,876	$	57,766

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Depreciation and amortization:
Digital Media	$	47,543	$	49,076	$	93,664	$	97,426
Cybersecurity and Martech	12,264		12,836		25,121		27,061
Total from reportable segments	59,807		61,912		118,785		124,487
Corporate	65		45		158		138
Depreciation and amortization of discontinued operations	—		2,779		—		5,601
Total depreciation and amortization	$	59,872	$	64,736	$	118,943	$	130,226

The Company maintains operations in the U.S., Canada, Ireland, the United Kingdom, India and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues:
United States	$	286,757	$	284,398	$	550,232	$	540,533
Canada	8,086		8,159		16,151		16,311
Ireland	7,732		9,342		16,544		19,055
All other countries	34,781		39,394		69,497		77,051
Total	$	337,356	$	341,293	$	652,424	$	652,950

	June 30, 2022		December 31, 2021
Long-lived assets:
United States	$	677,416	$	726,128
All other countries	74,041		63,423
Total	$	751,457	$	789,551