Segment Information

9 Months Ended

Sep. 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 Company aggregates its operating segments into two reportable segments: 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, 2022. 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue by reportable segment:
Digital Media	$	263,896	$	262,429	$	757,423	$	743,280
Cybersecurity and Martech	78,192		93,071		237,596		265,580
Elimination of inter-segment revenues	(215)		(356)		(722)		(766)
Total segment revenues	341,873		355,144		994,297		1,008,094
Corporate(1)	—		—		—		—
Total revenues	$	341,873	$	355,144	$	994,297	$	1,008,094
Gross profit by reportable segment:
Digital Media	$	232,887	$	238,650	$	676,040	$	673,409
Cybersecurity and Martech	56,595		66,884		174,251		192,638
Elimination of inter-segment gross profit	(212)		(88)		(701)		(214)
Total segment gross profit	289,270		305,446		849,590		865,833
Corporate(1)	—		—		—		(74)
Total gross profit	289,270		305,446		849,590		865,759
Operating expenses by reportable segment(2):
Digital Media	205,570		188,950		571,980		548,960
Cybersecurity and Martech	42,765		56,208		135,516		191,282
Elimination of inter-segment operating expenses	(212)		(88)		(701)		(214)
Total segment operating expenses	248,123		245,070		706,795		740,028
Corporate(1)	12,113		15,366		37,312		43,785
Total operating expenses	260,236		260,436		744,107		783,813
Operating income by reportable segment:
Digital Media	27,317		49,700		104,060		124,449
Cybersecurity and Martech	13,830		10,676		38,735		1,356
Total segment operating income	41,147		60,376		142,795		125,805
Corporate(1)	(12,113)		(15,366)		(37,312)		(43,859)
Income from operations	$	29,034	$	45,010	$	105,483	$	81,946

(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)Operating expenses 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 nine months ended September 30, 2021, goodwill impairment related to our B2B Backup business is also included within operating expenses for Cybersecurity and Martech. For the three and nine months ended September 30, 2022, the Company had an impairment to goodwill within operating expenses for Digital Media.

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.

	September 30, 2022		December 31, 2021
Assets:
Digital Media	$	2,014,843	$	2,043,204
Cybersecurity and Martech	970,482		1,088,741
Total assets from reportable segments	2,985,325		3,131,945
Corporate	447,743		638,335
Total assets	$	3,433,068	$	3,770,280

	Nine Months Ended September 30,
	2022		2021
Capital expenditures
Digital Media	$	69,451	$	51,995
Cybersecurity and Martech	11,312		20,248
Total from reportable segments	80,763		72,243
Corporate	4		—
Capital expenditures of discontinued operations	—		15,252
Total capital expenditures	$	80,767	$	87,495

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Depreciation and amortization:
Digital Media	$	44,631	$	50,056	$	138,297	$	147,482
Cybersecurity and Martech	11,445		12,742		36,566		39,803
Total from reportable segments	56,076		62,798		174,863		187,285
Corporate	(139)		79		17		217
Depreciation and amortization of discontinued operations	—		3,340		—		8,941
Total depreciation and amortization	$	55,937	$	66,217	$	174,880	$	196,443

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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues:
United States	$	291,164	$	297,123	$	841,396	$	837,656
Canada	8,629		8,284		24,780		24,596
Ireland	8,075		8,603		24,619		27,657
All other countries	34,005		41,134		103,502		118,185
Total	$	341,873	$	355,144	$	994,297	$	1,008,094

	September 30, 2022		December 31, 2021
Long-lived assets:
United States	$	644,327	$	726,128
All other countries	69,563		63,423
Total	$	713,890	$	789,551