Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

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 (“CODM”), who is the Company’s Chief Executive Officer, evaluates performance, makes operating decisions, and allocates resources based on the operating income (loss) 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 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 June 30, 2022, based on the Company’s internal financial reporting system utilized by the Company’s CODM, follows:

	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	94,856	$	—	$	—	$	94,856
Hosted services – Consumer	—		9,129		—		9,129
Professional services – Business	28,580		—		—		28,580
Total revenue	123,436		9,129		—		132,565
Cost of revenue	43,616		1,433		—		45,049
Sales and marketing	53,260		6,723		—		59,983
Amortization of purchased intangibles	923		—		—		923
Unallocated corporate expenses	—		—		96,859		96,859
Operating income (loss)	$	26,579	$	973	$	(96,859)	$	(70,249)

Summarized financial information by segment for the three months ended June 30, 2021, based on the Company’s internal financial reporting system utilized by the Company’s CODM, follows:

	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	95,092	$	—	$	—	$	95,092
Hosted services – Consumer	—		9,810		—		9,810
Professional services – Business	14,703		—		—		14,703
Total revenue	109,795		9,810		—		119,605
Cost of revenue	38,265		1,798		—		40,063
Sales and marketing	31,915		6,707		—		38,622
Amortization of purchased intangibles	374		—		—		374
Unallocated corporate expenses	—		—		54,124		54,124
Operating income (loss)	$	39,241	$	1,305	$	(54,124)	$	(13,578)

Summarized financial information by segment for the six months ended June 30, 2022, based on the Company’s internal financial reporting system utilized by the Company’s CODM, follows:

	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	201,180	$	—	$	—	$	201,180
Hosted services – Consumer	—		18,251		—		18,251
Professional services – Business	43,331		—		—		43,331
Total revenue	244,511		18,251		—		262,762
Cost of revenue	91,837		2,779		—		94,616
Sales and marketing	105,543		12,572		—		118,115
Amortization of purchased intangibles	1,822		—		—		1,822
Unallocated corporate expenses	—		—		182,643		182,643
Operating income (loss)	$	45,309	$	2,900	$	(182,643)	$	(134,434)

Summarized financial information by segment for the six months ended June 30, 2021, based on the Company’s internal financial reporting system utilized by the Company’s CODM, follows:

	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	178,732	$	—	$	—	$	178,732
Hosted services – Consumer	—		18,821		—		18,821
Professional services – Business	29,943		—		—		29,943
Total revenue	208,675		18,821		—		227,496
Cost of revenue	69,875		3,707		—		73,582
Sales and marketing	62,118		13,457		—		75,575
Amortization of purchased intangibles	749		—		—		749
Unallocated corporate expenses	—		—		104,797		104,797
Operating income (loss)	$	75,933	$	1,657	$	(104,797)	$	(27,207)

Geographic Information

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

	June 30, 2022		December 31, 2021
	(In thousands)
United States	$	479,706	$	444,318
Germany	46,580		52,342
Israel	22,463		20,754
Australia	12,414		12,771
Netherlands	3,723		4,566
Other (1)	15,316		15,629
Total long-lived assets	$	580,202	$	550,380

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