Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

14.Segment information

The Company defines its operating segments as components of its business where separate financial information is available and used by the chief operating decision maker (“CODM”) in deciding how to allocate resources to its segments and in assessing performance. The Company’s CODM is its Chief Executive Officer.

The Company has identified two reportable segments for financial reporting purposes: Software and Client Engineering Services. The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income (loss) adjusted for income tax expense (benefit), interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as determined by management. Adjusted EBITDA includes an allocation of corporate headquarters costs.

The following tables are in thousands:

Three months ended June 30, 2022	Software		CES		All other			Total
Revenue	$	124,269	$	7,047	$	1,340		$	132,656
Adjusted EBITDA	$	16,531	$	406	$	(497	)	$	16,440
Three months ended June 30, 2021	Software		CES		All other			Total
Revenue	$	107,039	$	10,268	$	2,605		$	119,912
Adjusted EBITDA	$	8,616	$	1,212	$	(332	)	$	9,496

Six months ended June 30, 2022	Software		CES		All other			Total
Revenue	$	274,227	$	15,059	$	3,151		$	292,437
Adjusted EBITDA	$	62,715	$	1,204	$	(889	)	$	63,030
Six months ended June 30, 2021	Software		CES		All other			Total
Revenue	$	244,678	$	20,945	$	4,452		$	270,075
Adjusted EBITDA	$	44,854	$	2,222	$	(620	)	$	46,456

	Three Months Ended  June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Reconciliation of Adjusted EBITDA to U.S. GAAP    (loss) income before income taxes:
Adjusted EBITDA	$	16,440		$	9,496		$	63,030		$	46,456
Stock-based compensation expense		(21,200	)		(10,648	)		(39,814	)		(20,296	)
Interest expense		(700	)		(2,988	)		(1,285	)		(5,961	)
Depreciation and amortization		(8,133	)		(6,494	)		(15,819	)		(13,180	)
Restructuring expense		—			(1,732	)		—			(5,078	)
Special adjustments, interest income and other (1)		(16,282	)		79			(17,929	)		173
(Loss) income before income taxes	$	(29,875	)	$	(12,287	)	$	(11,817	)	$	2,114

(1)The three months ended June 30, 2022, includes $16.6 million expense on repurchase of convertible senior notes, $5.4 million currency losses on acquisition-related intercompany loans, and a $5.3 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The six months ended June 30, 2022, includes $16.6 million expense on repurchase of convertible senior notes, $6.9 million currency losses on acquisition-related intercompany loans and a $5.3 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition.