Segments

12 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segments

SEGMENTS

The Company determines its operating segments based on ASC 280, Segment Reporting, how the chief operating decision making group monitors and manages the performance of the business and the level at which financial information is reviewed. The Company’s operating segments are strategic business units that offer different products and services.

The Company's core business is delivering seamless integrated payment and software solutions to SMBs and organizations in strategic vertical markets. This is accomplished through the Merchant Services and Proprietary Software and Payments segments.

The Merchant Services segment provides comprehensive payment solutions to businesses and organizations. The Merchant Services segment includes third-party integrated payment solutions as well as merchant of record payment services across the Company's strategic vertical markets.

The Proprietary Software and Payments segment delivers solutions, including embedded payments, to the Company's clients through company-owned software. Payments are delivered through both the payment facilitator model and the traditional merchant processing model.

The Other category includes corporate overhead expenses, when presenting reportable segment information.

Effective July 1, 2020, the Company reassigned a component from the Proprietary Software and Payments segment to the Merchant Services segment to better align the Company's segments with its business operations.

The prior period comparatives reflected in the tables below have been retroactively adjusted to reflect the Company's current segment presentation.

The Company primarily uses processing margin to measure operating performance. The following is a summary of reportable segment operating performance for the years ended September 30, 2020, 2019 and 2018.

	As of and for the Year ended September 30, 2020
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	100,949	$	50,953	$	(1,768)	$	150,134
Operating expenses
Other costs of services	43,940		5,057		(1,767)		47,230
Selling general and administrative	26,376		28,187		23,760		78,323
Depreciation and amortization	11,796		5,723		698		18,217
Change in fair value of contingent consideration	(4,691)		3,282		—		(1,409)
Income (loss) from operations	$	23,528	$	8,704	$	(24,459)	$	7,773
Processing margin(1)	$	78,627	$	46,483	$	(1,758)	$	123,352
Total assets	$	206,769	$	139,107	$	57,650	$	403,526
Goodwill	$	115,982	$	71,023	$	—	$	187,005

__________________________

1.Processing margin is equal to revenue less other costs of services. $21,618, $587 and $(1,757) of residual expense, a component of other costs of services, are added back to the Merchant Services segment, Proprietary Software and Payments segment, and Other category, respectively.

	As of and for the Year ended September 30, 2019
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	338,968	$	37,339	$	—	$	376,307
Operating expenses
Interchange and network fees	236,170		6,697		—		242,867
Other costs of services	41,487		2,750		—		44,237
Selling general and administrative	27,275		17,059		18,526		62,860
Depreciation and amortization	12,221		3,790		553		16,564
Change in fair value of contingent consideration	(477)		3,866		—		3,389
Income (loss) from operations	$	22,292	$	3,177	$	(19,079)	$	6,390
Processing margin(1)	$	78,369	$	28,497	$	—	$	106,866
Total assets	$	216,420	$	99,420	$	33,462	$	349,302
Goodwill	$	117,334	$	50,950	$	—	$	168,284

__________________________

1.Processing margin is equal to revenue less interchange and network fees, less other costs of services. $17,058, $605 and $0 of residual expense, a component of other costs of services, are added back to the Merchant Services segment, Proprietary Software and Payments segment, and Other category, respectively.

	As of and for the Year ended September 30, 2018
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	303,692	$	19,819	$	(3)	$	323,508
Operating expenses
Interchange and network fees	209,705		4,838		—		214,543
Other costs of services	38,563		1,752		(1)		40,314
Selling general and administrative	23,716		7,177		9,692		40,585
Depreciation and amortization	9,736		1,896		207		11,839
Change in fair value of contingent consideration	2,103		1,763		—		3,866
Income (loss) from operations	$	19,869	$	2,393	$	(9,901)	$	12,361
Processing margin(1)	$	69,449	$	13,733	$	(2)	$	83,180
Total assets	$	143,792	$	26,524	$	4,826	$	175,142
Goodwill	$	70,936	$	13,018	$	—	$	83,954

__________________________

1.Processing margin is equal to revenue less interchange and network fees, less other costs of services. $14,025, $504 and $0 of residual expense, a component of other costs of services, are added back to the Merchant Services segment, Proprietary Software and Payments segment, and Other category, respectively.