Segments

6 Months Ended

Mar. 31, 2021

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 seamlessly 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 proprietary 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. Processing margin is equal to revenue less other cost of services plus residuals expense, which are a component of other cost of

services. The following is a summary of reportable segment operating performance for the three and six months ended March 31, 2021 and 2020.

	As of and for the Three Months Ended March 31, 2021
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	25,992	$	22,549	$	(678)	$	47,863
Other costs of services	(11,782)		(210)		678		(11,314)
Residuals	6,901		287		(667)		6,521
Processing margin	$	21,111	$	22,626	$	(667)	$	43,070
Residuals							(6,521)
Selling general and administrative							(30,511)
Depreciation and amortization							(5,851)
Change in fair value of contingent consideration							(322)
Loss from operations							$	(135)
Total assets	$	210,720	$	327,446	$	64,653	$	602,819
Goodwill	$	118,874	$	144,491	$	—	$	263,365

	As of and for the Six Months Ended March 31, 2021
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	50,962	$	41,325	$	(1,111)	$	91,176
Other costs of services	(22,623)		(3,467)		1,110		(24,980)
Residuals	12,845		544		(1,093)		12,296
Processing margin	$	41,184	$	38,402	$	(1,094)	$	78,492
Residuals							(12,296)
Selling general and administrative							(55,473)
Depreciation and amortization							(10,943)
Change in fair value of contingent consideration							(2,226)
Loss from operations							$	(2,446)
Total assets	$	210,720	$	327,446	$	64,653	$	602,819
Goodwill	$	118,874	$	144,491	$	—	$	263,365

	As of and for the Three Months Ended March 31, 2020
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	25,729	$	13,980	$	(531)	$	39,178
Other costs of services	(11,356)		(1,129)		530		(11,955)
Residuals	5,540		156		(526)		5,170
Processing margin	$	19,913	$	13,007	$	(527)	$	32,393
Residuals							(5,170)
Selling general and administrative							(20,786)
Depreciation and amortization							(4,538)
Change in fair value of contingent consideration							142
Income from operations							$	2,041
Total assets	$	212,899	$	96,949	$	41,334	$	351,182
Goodwill	$	116,401	$	50,653	$	—	$	167,054

	As of and for the Six Months Ended March 31, 2020
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	53,968	$	27,262	$	(941)	$	80,289
Other costs of services	(23,530)		(2,283)		940		(24,873)
Residuals	11,098		310		(934)		10,474
Processing margin	$	41,536	$	25,289	$	(935)	$	65,890
Residuals							(10,474)
Selling general and administrative							(40,073)
Depreciation and amortization							(9,193)
Change in fair value of contingent consideration							(12)
Income from operations							$	6,138
Total assets	$	212,899	$	96,949	$	41,334	$	351,182
Goodwill	$	116,401	$	50,653	$	—	$	167,054

The Company has not disclosed expenditures on long-lived assets as such expenditures are not reviewed by or provided to the chief operating decision maker.