Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information    

The Company accounts for its segment information in accordance with the provisions of ASC 280-10, “Segment Reporting.” ASC 280-10 establishes annual and interim reporting standards for operating segments of a company. ASC 280-10 requires disclosures of selected segment-related financial information about products, major customers, and geographic areas based on the Company’s internal accounting methods. The Company is organized into two operating segments for purposes of making operating decisions and assessing performance. The Business segment facilitates real-time online interactions — chat, voice and content delivery across multiple channels and screens for global corporations of all sizes. The Consumer segment facilitates online transactions between Experts and Users and sells its services to consumers. The chief operating decision-maker evaluates performance, makes operating decisions, and allocates resources based on the operating income of each segment. The reporting segments follow the same accounting polices used in the preparation of the Company’s consolidated financial statements which are described in the summary of significant accounting policies. The Company allocates cost of revenue, sales and marketing and amortization of purchased intangibles to the segments, but it does not allocate product development expenses, general and administrative expenses and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no intersegment sales. Additionally, assets are not available for review by segment and therefore no segment asset disclosure is presented.

Summarized financial information by segment for the year ended December 31, 2016, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands):

	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	183,551	$	—	$	—		$	183,551
Hosted services – Consumer	—		16,258		—			16,258
Professional services	22,970		—		—			22,970
Total revenue	206,521		16,258		—			222,779
Cost of revenue	60,352		2,809		—			63,161
Sales and marketing	82,063		7,466		—			89,529
Amortization of purchased intangibles	3,885		—		—			3,885
Unallocated corporate expenses	—		—		85,613			85,613
Operating income (loss)	$	60,221	$	5,983	$	(85,613	)	$	(19,409	)

Summarized financial information by segment for the year ended December 31, 2015, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands):

	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	200,576	$	—	$	—		$	200,576
Hosted services – Consumer	—		15,209		—			15,209
Professional services	23,227		—		—			23,227
Total revenue	223,803		15,209		—			239,012
Cost of revenue	67,901		2,409		—			70,310
Sales and marketing	87,975		6,753		—			94,728
Amortization of purchased intangibles	4,873		—		—			4,873
Unallocated corporate expenses	—		—		79,529			79,529
Operating income (loss)	$	63,054	$	6,047	$	(79,529	)	$	(10,428	)

Summarized financial information by segment for the year ended December 31, 2014, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands):

	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	172,783	$	—	$	—		$	172,783
Hosted services – Consumer	—		16,629		—			16,629
Professional services	20,519		—		—			20,519
Total revenue	193,302		16,629		—			209,931
Cost of revenue	50,192		2,511		—			52,703
Sales and marketing	77,118		6,135		—			83,253
Amortization of purchased intangibles	1,621		—					1,621
Unallocated corporate expenses	—		—		77,521			77,521
Operating income (loss)	$	64,371	$	7,983	$	(77,521	)	$	(5,167	)

Geographic Information    

The Company is domiciled in the United States and has international operations in the United Kingdom, Asia-Pacific, Latin America and Western Europe, particularly France and Germany. The following table presents the Company's revenues attributable to domestic and foreign operations for the years ended (amounts in thousands):

	December 31,
	2016		2015		2014
United States	$	146,733	$	159,539	$	138,533
Other Americas (1)	6,818		12,296		10,508
Total Americas	153,551		171,835		149,041
EMEA (2) (4)	50,511		51,548		44,506
APAC (3)	18,717		15,629		16,384
Total revenue	$	222,779	$	239,012	$	209,931

⁽¹⁾ Canada, Latin America and South America

⁽²⁾ Europe, the Middle East and Africa (“EMEA”)

⁽³⁾ Asia-Pacific (“APAC”)

⁽⁴⁾ Includes revenues from the United Kingdom of $35.3 million and $38.2 million for the twelve months ended December 31, 2016 and 2015, respectively.

The following table presents the Company's long-lived assets by geographic region for the years ended (amounts in thousands):

	December 31,
	2016		2015
United States	$	93,845	$	96,362
Israel	13,940		16,393
Australia	9,496		8,290
Netherlands	7,495		8,285
Other (1)	2,711		2,482
Total long-lived assets	$	127,487	$	131,812

⁽¹⁾ United Kingdom, Germany, Japan, France, and Italy