Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment InformationThe 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 September 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	$	89,491	$	—	$	—	$	89,491
Hosted services – Consumer	—		9,460		—		9,460
Professional services – Business	30,610		—		—		30,610
Total revenue	120,101		9,460		—		129,561
Cost of revenue	42,392		1,289		—		43,681
Sales and marketing	42,826		6,622		—		49,448
Amortization of purchased intangibles	920		—		—		920
Unallocated corporate expenses	—		—		84,026		84,026
Operating income (loss)	$	33,963	$	1,549	$	(84,026)	$	(48,514)

Summarized financial information by segment for the three months ended September 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	$	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 nine months ended September 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	$	290,671	$	—	$	—	$	290,671
Hosted services – Consumer	—		27,711		—		27,711
Professional services – Business	73,941		—		—		73,941
Total revenue	364,612		27,711		—		392,323
Cost of revenue	134,229		4,068		—		138,297
Sales and marketing	148,370		19,193		—		167,563
Amortization of purchased intangibles	2,742		—		—		2,742
Unallocated corporate expenses	—		—		266,669		266,669
Operating income (loss)	$	79,271	$	4,450	$	(266,669)	$	(182,948)

Summarized financial information by segment for the nine months ended September 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	$	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)

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:

	September 30, 2022		December 31, 2021
	(In thousands)
United States	$	476,244	$	444,318
Germany	42,927		52,342
Israel	23,161		20,754
Australia	12,031		12,771
Netherlands	3,320		4,566
Other (1)	13,405		15,629
Total long-lived assets	$	571,088	$	550,380

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