Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

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’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 Experts and 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 our condensed consolidated financial statements which are described in Note 1 –Description of Business and Basis of Presentation. 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, or 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 September 30, 2021, based on the Company's internal financial reporting system utilized by its chief operating decision maker, follows:

	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	93,234	$	—	$	—	$	93,234
Hosted services – Consumer	—		9,123		—		9,123
Professional services – Business	15,970		—		—		15,970
Total revenue	109,204		9,123		—		118,327
Cost of revenue	37,057		1,738		—		38,795
Sales and marketing	34,640		6,212		—		40,852
Amortization of purchased intangibles	488		—		—		488
Unallocated corporate expenses	—		—		58,971		58,971
Operating income (loss)	$	37,019	$	1,173	$	(58,971)	$	(20,779)

Summarized financial information by segment for the three months ended September 30, 2020, based on the Company's internal financial reporting system utilized by its chief operating decision maker, follows:

	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	74,396	$	—	$	—	$	74,396
Hosted services – Consumer	—		7,881		—		7,881
Professional services – Business	12,527		—		—		12,527
Total revenue	86,923		7,881		—		94,804
Cost of revenue	25,862		1,830		—		27,692
Sales and marketing	27,525		5,250		—		32,775
Amortization of purchased intangibles	411		—		—		411
Unallocated corporate expenses	—		—		69,069		69,069
Operating income (loss)	$	33,125	$	801	$	(69,069)	$	(35,143)

Summarized financial information by segment for the nine months ended September 30, 2021, based on the Company's internal financial reporting system utilized by its chief operating decision maker, follows:

	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	271,966	$	—	$	—	$	271,966
Hosted services – Consumer	—		27,944		—		27,944
Professional services – Business	45,913		—		—		45,913
Total revenue	317,879		27,944		—		345,823
Cost of revenue	106,932		5,445		—		112,377
Sales and marketing	96,758		19,669		—		116,427
Amortization of purchased intangibles	1,237		—		—		1,237
Unallocated corporate expenses	—		—		163,768		163,768
Operating income (loss)	$	112,952	$	2,830	$	(163,768)	$	(47,986)

Summarized financial information by segment for the nine months ended September 30, 2020, based on the Company's internal financial reporting system utilized by its chief operating decision maker, follows:

	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	207,832	$	—	$	—	$	207,832
Hosted services – Consumer	—		21,707		—		21,707
Professional services – Business	34,956		—		—		34,956
Total revenue	242,788		21,707		—		264,495
Cost of revenue	73,291		4,927		—		78,218
Sales and marketing	93,920		16,153		—		110,073
Amortization of purchased intangibles	1,219		—		—		1,219
Unallocated corporate expenses	—		—		157,765		157,765
Operating income (loss)	$	74,358	$	627	$	(157,765)	$	(82,780)

Geographic Information

The Company is domiciled in the United States and has international operations around the globe. The following table presents its long-lived assets by geographic region as of the dates presented:

	September 30, 2021		December 31, 2020
	(In thousands)
United States	$	220,181	$	202,275
Germany	52,846		1,597
Israel	19,361		16,657
Australia	12,599		13,792
Netherlands	4,703		8,301
Other (1)	16,528		14,999
Total long-lived assets	$	326,218	$	257,621

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