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. Both segments currently generate their revenue primarily in the United States. The chief operating decision maker, who is the chief executive officer, 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 condensed 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, restructuring costs and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no inter-segment sales.

Summarized financial information by segment for the three months ended March 31, 2018, 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	$	47,427	$	—	$	—		$	47,427
Hosted services – Consumer	—		4,680		—			4,680
Professional services	6,134		—		—			6,134
Total revenue	53,561		4,680		—			58,241
Cost of revenue	12,918		1,036		—			13,954
Sales and marketing	21,723		2,408		—			24,131
Amortization of purchased intangibles	424		—		—			424
Unallocated corporate expenses	—		—		23,553			23,553
Operating income (loss)	$	18,496	$	1,236	$	(23,553	)	$	(3,821	)

Summarized financial information by segment for the three months ended March 31, 2017, 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	$	41,493	$	—	$	—		$	41,493
Hosted services – Consumer	—		4,170		—			4,170
Professional services	5,256		—		—			5,256
Total revenue	46,749		4,170		—			50,919
Cost of revenue	12,906		875		—			13,781
Sales and marketing	19,543		2,157		—			21,700
Amortization of purchased intangibles	472		—		—			472
Unallocated corporate expenses	—		—		19,890			19,890
Operating income (loss)	$	13,828	$	1,138	$	(19,890	)	$	(4,924	)

Geographic Information

The Company is domiciled in the United States and has international operations in the Israel, United Kingdom, Asia-Pacific, Latin America and Western Europe, particularly France and Germany. The following table presents the Company’s long-lived assets by geographic region for the periods presented (amounts in thousands):



	March 31,		December 31,
	2018		2017
United States	$	98,279	$	95,716
Israel	13,263		13,079
Australia	9,276		9,504
Netherlands	8,252		8,363
Other ⁽¹⁾	3,203		3,293
Total long-lived assets	$	132,273	$	129,955

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

No individual customer accounted for 10% or more of consolidated revenue for any of the periods presented. No individual customer accounted for 10% or more of accounts receivable as of March 31, 2018 and December 31, 2017.