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 enables brands to leverage LiveEngage’s sophisticated intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The Consumer segment facilitates online transactions between independent service providers (“Experts”) and individual consumers (“Users”) seeking information and knowledge for a fee via mobile and online messaging. 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 June 30, 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	$	48,331	$	—	$	—		$	48,331
Hosted services – Consumer	—		4,952		—			4,952
Professional services	8,377		—		—			8,377
Total revenue	56,708		4,952		—			61,660
Cost of revenue	15,086		950		—			16,036
Sales and marketing	23,339		2,053		—			25,392
Amortization of purchased intangibles	424		—		—			424
Unallocated corporate expenses	—		—		27,624			27,624
Operating income (loss)	$	17,859	$	1,949	$	(27,624	)	$	(7,816	)

Summarized financial information by segment for the three months ended June 30, 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	$	43,927	$	—	$	—		$	43,927
Hosted services – Consumer	—		4,460		—			4,460
Professional services	5,687		—		—			5,687
Total revenue	49,614		4,460		—			54,074
Cost of revenue	14,206		928		—			15,134
Sales and marketing	21,242		2,150		—			23,392
Amortization of purchased intangibles	470		—		—			470
Unallocated corporate expenses	—		—		21,839			21,839
Operating income (loss)	$	13,696	$	1,382	$	(21,839	)	$	(6,761	)

Summarized financial information by segment for the six months ended June 30, 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	$	95,759	$	—	$	—		$	95,759
Hosted services – Consumer	—		9,632		—			9,632
Professional services	14,510		—		—			14,510
Total revenue	110,269		9,632		—			119,901
Cost of revenue	28,004		1,986		—			29,990
Sales and marketing	45,062		4,461		—			49,523
Amortization of purchased intangibles	848		—		—			848
Unallocated corporate expenses	—		—		51,177			51,177
Operating income (loss)	$	36,355	$	3,185	$	(51,177	)	$	(11,637	)

Summarized financial information by segment for the six months ended June 30, 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	$	85,420	$	—	$	—		$	85,420
Hosted services – Consumer	—		8,630		—			8,630
Professional services	10,943		—		—			10,943
Total revenue	96,363		8,630		—			104,993
Cost of revenue	27,112		1,803		—			28,915
Sales and marketing	40,785		4,307		—			45,092
Amortization of purchased intangibles	942		—		—			942
Unallocated corporate expenses	—		—		41,730			41,730
Operating income (loss)	$	27,524	$	2,520	$	(41,730	)	$	(11,686	)

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 as of the dates presented (amounts in thousands):



	June 30,		December 31,
	2018		2017
United States	$	99,307	$	95,716
Israel	13,597		13,079
Australia	9,134		9,504
Netherlands	7,992		8,363
Other ⁽¹⁾	3,434		3,293
Total long-lived assets	$	133,464	$	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 June 30, 2018 and December 31, 2017.