Segment Data

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Data

19. SEGMENT DATA

The Company’s management has determined that the Company operates in three reportable segments as of December 31, 2022, based upon the type of advertising medium, which segments are digital, television and audio (formerly radio). The Company’s segments results reflect information presented on the same basis that is used for internal management reporting and it is also how the chief operating decision maker evaluates the business.

Digital

The Company's digital segment, whose operations are located in Latin America, Europe, the United States, Asia and Africa, reaches a global market, with a focus on advertisers in emerging economies that wish to advertise on digital platforms owned and operated primarily by global media companies.

The Company provides digital end-to-end advertising solutions that allow advertisers to reach online users worldwide. These solutions are comprised of four business units:
 

•the Company's digital commercial partnerships business;

•Smadex, the Company's programmatic ad purchasing platform;

•the Company's mobile growth solutions business; and

•the Company's digital audio business.
 

Through the Company's digital commercial partnerships business – the largest of its digital business units – the Company acts as an intermediary between primarily global media companies and advertising customers or their ad agencies. The global media companies represented by the Company include Meta (formerly known as Facebook Inc.), Spotify, ByteDance and Twitter, as well as other media companies, in more than 30 countries throughout the world. The Company's dedicated local sales teams sell advertising space on these and other media companies' digital platforms to its advertising customers or their ad agencies for the placement of ads directed to online users of a wide range of Internet-connected devices. The Company also provides some of its advertising customers billing, technological and other support, including strategic marketing and training, which it refers to as managed services.

Smadex is the Company's programmatic ad purchasing platform, on which advertisers can purchase ad inventory. This practice – the purchase and sale of advertising inventory electronically – is referred to in the Company's industry as programmatic advertising. Smadex is also a “demand-side" platform, which allows advertisers to purchase space from online marketplaces on which media companies list their advertising inventory. Most advertisements acquired through Smadex are placed on mobile devices, but they may also be placed on computers and other Internet-connected devices. The Company also provides managed services to some of its advertising customers in connection with their use of its Smadex platform.

The Company also offers a mobile growth solutions business, which provides managed services to advertisers looking to connect with consumers, primarily on mobile devices. This business allows the Company to manage programmatic media buys for its advertising customers or their ad agencies through multiple ad purchasing platforms in real time across multiple channels.

The Company's digital audio business provides digital audio advertising solutions for advertisers in the Americas. The Company's advertising customers and their ad agencies use these solutions to promote their brands on online audio streams, and provides them with tools to target specific users by demographic and geographic categories.

Television

The Company's television operations reach and engage U.S. Hispanics in the United States. The Company owns and/or operates 49 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company generates revenue from advertising, retransmission consent agreements and the monetization of spectrum usage rights in these markets.

Audio

The Company's audio operations reach and engage U.S. Hispanics in the United States. The Company owns and operates 45 radio stations (37 FM and 8 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value of contingent consideration, impairment charge, other operating (gain) loss, and foreign currency (gain) loss. The Company generated 74%, 69% and 36% and of its revenue outside the United States during the years ended December 31, 2022, 2021 and 2020, respectively (see Note 5).

The accounting policies applied to determine the segment information are generally the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates the performance of its operating segments based on separate financial data for each operating segment as provided below (in thousands):

	Years Ended December 31,								% Change			% Change
		2022		2021			2020		2022 to 2021			2021 to 2020
Net Revenue
Digital	$	747,103	$	555,338		$	143,309			35	%		288	%
Television		144,730		146,839			154,456			(1	)%		(5	)%
Audio		64,376		58,015			46,261			11	%		25	%
Consolidated		956,209		760,192			344,026			26	%		121	%
Cost of revenue - digital		623,916		466,517			106,928			34	%		336	%
Direct operating expenses
Digital		32,518		25,481			15,227			28	%		67	%
Television		61,301		63,016			61,145			(3	)%		3	%
Audio		28,792		27,952			28,537			3	%		(2	)%
Consolidated		122,611		116,449			104,909			5	%		11	%
Selling, general and administrative expenses
Digital		41,612		26,123			15,404			59	%		70	%
Television		20,657		18,381			19,748			12	%		(7	)%
Audio		12,896		12,081			13,252			7	%		(9	)%
Consolidated		75,165		56,585			48,404			33	%		17	%
Depreciation and amortization
Digital		12,148		8,377			2,561			45	%		227	%
Television		11,126		12,477			12,918			(11	)%		(3	)%
Audio		2,423		1,566			1,803			55	%		(13	)%
Consolidated		25,697		22,420			17,282			15	%		30	%
Segment operating profit (loss)
Digital		36,909		28,840			3,189			28	%		804	%
Television		51,646		52,965			60,645			(2	)%		(13	)%
Audio		20,265		16,416			2,669			23	%		515	%
Consolidated		108,820		98,221			66,503			11	%		48	%
Corporate expenses		49,404		32,993			27,807			50	%		19	%
Change in fair value of contingent consideration		14,210		8,224			—			73	%	*
Impairment charge		1,600		3,023			40,035			(47	)%		(92	)%
Foreign currency (gain) loss		2,972		508			(1,052	)		485	%	*
Other operating (gain) loss		382		(6,998	)		(6,895	)	*				1	%
Operating income (loss)	$	40,252	$	60,471		$	6,608			(33	)%		815	%
Capital expenditures
Digital	$	6,186	$	2,073		$	1,659
Television		5,887		2,833			7,184
Audio		561		705			641
Consolidated	$	12,634	$	5,611		$	9,484
Total assets
Digital	$	408,027	$	309,347		$	196,020
Television		363,904		433,303			425,899
Audio		108,910		108,692			125,426
Consolidated	$	880,841	$	851,342		$	747,345