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Segment Information
 3 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information

The Company provides operating results in five reportable segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), Machinio, and Corporate & Other. The GovDeals, CAG, RSCG and Machinio segments constitute 99.2% of the Company's revenue as of December 31, 2018 and each offers separately branded marketplaces to enable sellers to achieve their respective channel marketing objectives to reach buyers. Across its segments, the Company offers its sellers two primary transaction models, as well as a suite of services, and its revenues vary depending upon the models employed and the level of service required. A description of the reportable segments is provided below:

•
The GovDeals reportable segment provides self-service solutions in which sellers list their own assets, and it consists of marketplaces that enable local and state government entities, including city, county and state agencies, as well as commercial businesses located in the United States and Canada, to sell surplus and salvage assets. GovDeals also offers a suite of services to sellers that includes asset sales and marketing. This segment includes the Company's GovDeals.com and AuctionDeals.com marketplaces.

•
The CAG reportable segment provides full-service solutions to sellers and consists of marketplaces that enable federal government agencies, as well as commercial businesses, to sell surplus, salvage, and scrap assets. This marketplace enables federal government agencies as well as commercial businesses to sell scrap assets of the U.S. Department of Defense. Sales of assets procured through our Surplus Contract, which wound down during 2018, and our Scrap Contract, are conducted through the Government Liquidation marketplace included in this segment. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. Commercial sellers are located in the United States, Europe, Australia and Asia. This segment includes the Company's Network International, GoIndustry DoveBid, and Government Liquidation marketplaces.

•
The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods and retail capital assets. RSCG also offers a suite of services that includes returns management, asset recovery, and ecommerce services. This segment includes the Company's Liquidation.com, Liquidation.com DIRECT, and Secondipity marketplaces.

•
The Machinio reportable segment operates a global online platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. Machinio was acquired by the Company in July 2018.

•
Corporate & Other primarily consists of the Company's IronDirect operating segment that is not individually significant as well as elimination adjustments. IronDirect offers buyers access to construction equipment, parts and services through a single ecommerce marketplace.

Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker ("CODM"), which is the Company's Chief Executive Officer, with oversight by the Board of Directors. The Company reports segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with that assessment, the CODM uses segment gross profit to evaluate the performance of each segment. Segment gross profit is calculated as total revenue less cost of goods sold (exclusive of depreciation and amortization) and seller distributions.

The amount of our revenue that came from sales outside of the United States for the three months ended December 31, 2018 and 2017 was 16.3% and 13.4%, respectively.

The following table sets forth certain financial information for the Company's reportable segments (in thousands):

 
 
 
Three Months Ended December 31,
 
 
 
2018
 
2017
GovDeals:
 
 
 
 
 
Revenue
 
$
—

 
$
—

 
Fee revenue
 
$
7,658

 
$
7,040

 
Total revenue
 
$
7,658

 
$
7,040

 
Gross profit
 
$
7,061

 
$
6,543

 
 
 
 
 
 
CAG:
 
 
 
 
 
Revenue
 
$
9,230

 
$
21,550

 
Fee revenue
 
$
6,252

 
$
10,513

 
Total revenue
 
$
15,482

 
$
32,063

 
Gross profit
 
$
8,883

 
$
17,603

 
 
 
 
 
 
RSCG:
 
 
 
 
 
Revenue
 
$
26,070

 
$
17,177

 
Fee revenue
 
$
3,408

 
$
3,308

 
Total revenue
 
$
29,478

 
$
20,485

 
Gross profit
 
$
9,549

 
$
6,728

 
 
 
 
 
 
Machinio
 
 
 
 
 
Revenue
 
$
—

 
$
—

 
Fee revenue
 
$
991

 
$
—

 
Total revenue
 
$
991

 
$
—

 
Gross Profit
 
$
878

 
$
—

 
 
 
 
 
 
Corporate & Other:
 
 
 
 
 
Revenue
 
$
435

 
$
1,553

 
Fee revenue
 
$
9

 
$
2

 
Total revenue
 
$
444

 
$
1,555

 
Gross profit
 
$
102

 
$
(675
)
 
 
 
 
 
 
Consolidated:
 
 
 
 
 
Revenue
 
$
35,735

 
$
40,280

 
Fee revenue
 
$
18,318

 
$
20,863

 
Total revenue
 
$
54,053

 
$
61,143

 
Gross profit
 
$
26,473

 
$
30,199



The following table presents a reconciliation between gross profit used in reportable segments and the Company's consolidated results (in thousands):
 
 
 
Three Months Ended December 31,
 
 
 
2018
 
2017
Reconciliation:
 
 
 
 
 
Gross profit
 
$
26,473

 
$
30,199

 
Operating Expenses
 
31,343

 
35,282

 
Other operating expenses
 
205

 
1,459

 
Interest and other income, net
 
(319
)
 
(515
)
 
Provision (benefit) for income taxes
 
266

 
(4,815
)
 
Net loss
 
$
(5,022
)
 
$
(1,212
)