Segment Information

12 Months Ended

Dec. 31, 2022

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’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 of each segment. The reporting segments follow the same accounting policies 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 periods presented, based on the Company’s internal financial reporting system utilized by the Company’s CODM, follows:

	Year Ended December 31, 2022
	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	375,325	$	—	$	—	$	375,325
Hosted services – Consumer	—		37,142		—		37,142
Professional services – Business	102,333		—		—		102,333
Total revenue	477,658		37,142		—		514,800
Cost of revenue	179,295		5,404		—		184,699
Sales and marketing	187,932		26,095		—		214,027
Amortization of purchased intangibles	3,678		—		—		3,678
Unallocated corporate expenses	—		—		334,280		334,280
Operating income (loss)	$	106,753	$	5,643	$	(334,280)	$	(221,884)

	Year Ended December 31, 2021
	Business		Consumer		Corporate		Consolidated
	(In thousands)
Revenue:
Hosted services – Business	$	364,231	$	—	$	—	$	364,231
Hosted services – Consumer	—		37,695		—		37,695
Professional services – Business	67,698		—		—		67,698
Total revenue	431,929		37,695		—		469,624
Cost of revenue	149,983		6,897		—		156,880
Sales and marketing	139,866		25,555		—		165,421
Amortization of purchased intangibles	2,045		—		—		2,045
Unallocated corporate expenses	—		—		238,544		238,544
Operating income (loss)	$	140,035	$	5,243	$	(238,544)	$	(93,266)

	Year Ended December 31, 2020
	Business		Consumer		Corporate		Consolidated
	(In thousands)
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)

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:

	December 31,
	2022		2021
	(In thousands)
United States	$	476,040	$	444,318
Germany	46,323		52,342
Israel	4,064		20,754
Australia	12,057		12,771
Netherlands	3,470		4,566
Other (1)	13,520		15,629
Total long-lived assets	$	555,474	$	550,380

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