Segment Information

12 Months Ended

Dec. 31, 2020

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 enables brands to leverage the Conversational Cloud 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, 2020, 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	$	286,588	$	—	$	—	$	286,588
Hosted services – Consumer	—		29,764		—		29,764
Professional services – Business	50,268		—		—		50,268
Total revenue	336,856		29,764		—		366,620
Cost of revenue	99,394		6,874		—		106,268
Sales and marketing	128,752		21,021		—		149,773
Amortization of purchased intangibles	1,639		—		—		1,639
Unallocated corporate expenses	—		—		198,391		198,391
Operating income (loss)	$	107,071	$	1,869	$	(198,391)	$	(89,451)

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)

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,
	2020		2019
United States	$	202,275	$	177,776
Israel	16,657		16,680
Australia	13,792		13,765
Netherlands	8,301		7,705
Other (1)	16,596		18,677
Total long-lived assets	$	257,621	$	234,603

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