Segment Information

12 Months Ended

Dec. 31, 2019

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 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 year ended December 31, 2019, 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	$	225,705	$	—	$	—		$	225,705
Hosted services – Consumer	—		24,480		—			24,480
Professional services – Business	41,424		—		—			41,424
Total revenue	267,129		24,480		—			291,609
Cost of revenue	74,460		4,418		—			78,878
Sales and marketing	140,880		15,934		—			156,814
Amortization of purchased intangibles	1,794		—		—			1,794
Unallocated corporate expenses	—		—		141,155			141,155
Operating income (loss)	$	49,995	$	4,128	$	(141,155	)	$	(87,032	)

Summarized financial information by segment for the year ended December 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	$	197,474	$	—	$	—		$	197,474
Hosted services – Consumer	—		19,553		—			19,553
Professional services – Business	32,811		—		—			32,811
Total revenue	230,285		19,553		—			249,838
Cost of revenue	58,420		4,059		—			62,479
Sales and marketing	94,339		9,005		—			103,344
Amortization of purchased intangibles	1,670		—		—			1,670
Unallocated corporate expenses	—		—		106,048			106,048
Operating income (loss)	$	75,856	$	6,489	$	(106,048	)	$	(23,703	)

Summarized financial information by segment for the year ended December 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	$	178,686	$	—	$	—		$	178,686
Hosted services – Consumer	—		17,450		—			17,450
Professional services – Business	22,740		—		—			22,740
Total revenue	201,426		17,450		—			218,876
Cost of revenue	54,600		3,605		—			58,205
Sales and marketing	82,420		8,485		—			90,905
Amortization of purchased intangibles	1,840		—		—			1,840
Unallocated corporate expenses	—		—		85,752			85,752
Operating income (loss)	$	62,566	$	5,360	$	(85,752	)	$	(17,826	)

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 long-lived assets by geographic region for the periods presented (amounts in thousands):



	December 31,
	2019		2018
United States	$	177,776	$	128,647
Israel	16,680		14,140
Australia	13,765		9,529
Netherlands	7,705		7,452
Other ⁽¹⁾	18,677		8,611
Total long-lived assets	$	234,603	$	168,379

⁽¹⁾ United Kingdom, Germany, Japan, France, Italy, Singapore, Canada, and Spain