Product and Geographic Sales Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Product and Geographic Sales Information

Segment Information

The Chief Executive Officer is the Company’s Chief Operating Decision Maker (“CODM”). Prior to the fourth quarter of 2020, the Company’s CODM previously assessed the Company-wide performance and allocated resources based on consolidated financial information. During the fourth quarter of 2020, in connection with the CPA Global combination, the company realigned its reporting structure and changed the manner in which the CODM allocates resources and assesses performance. The CODM organizes the Company within products lines and, as a result, two new operating segments were created including the Science Group and Intellectual Property Group. The CODM evaluates segment performance based primarily on revenue and segment Adjusted EBITDA, as described below. The CODM does not review assets by operating segment for the purposes of assessing performance or allocated resources.

Each of the Company’s reportable segments, Science Group and Intellectual Property Group, recognizes revenue in accordance with the revenue recognition policy within Note 3 - Summary of Significant Accounting Policies in the Company's Form 10-K/A. Below is the overview of the product lines within each reportable segment.

Science: The Science segment consists of our Academic, Life Sciences and Healthcare Product Lines. Both provide curated, high-value, structured information and consulting services that is delivered and embedded into the workflows of our customers, which include research-intensive corporations, life science organizations and universities world-wide.

Intellectual Property: The Intellectual Property segment consists of our Patent, Trademark, Domain, and IP Management Product Lines. These Product Lines help manage customer’s end-to-end portfolio of intellectual property from patents to trademarks to corporate website domains.

Each of the two operating segments represent the segments for which discrete financial information is available and upon which operating results are regularly evaluated by the CODM in order to assess performance and allocate resources. The CODM evaluates performance based primarily on revenue and segment Adjusted EBITDA. Adjusted EBITDA represents net (loss) income before provision for income taxes, depreciation and amortization, interest income and expense adjusted to exclude acquisition or disposal-related transaction costs (such costs include net income from continuing operations before provision for income taxes, depreciation and amortization and interest income and expense from divestitures), losses on extinguishment of debt, stock-based compensation, unrealized foreign currency gains/(losses), costs associated with the transition services agreement with Thomson Reuters, separation and integration costs, transformational and restructuring expenses, acquisition-related adjustments to deferred revenues, costs related to our merger with Churchill Capital Corp in 2019, non-cash income/(loss) on equity and cost method investments, non-operating income or expense, the impact of certain non-cash, legal settlements and other items that are included in net income for the period that the Company does not consider indicative of its ongoing operating performance and certain unusual items impacting results in a particular period.

The following table summarizes revenue by reportable segment for the periods indicated:

	Three Months Ended September 30,
	2021		2020
Science Segment	$	200,821	$	188,701
Intellectual Property Segment	241,296		95,659
Total Revenues	$	442,117	$	284,360
	Nine Months Ended September 30,
	2021		2020
Science Segment	$	594,380	$	514,774
Intellectual Property Segment	721,812		283,678
Total Revenues	$	1,316,192	$	798,452

Adjusted EBITDA by segment

The following table presents segment profitability and a reconciliation to net income for the periods indicated:

	Three Months Ended September 30,
	2021		2020 (As Restated)
Science Segment Adjusted EBITDA	$	113,771	$	83,310
Intellectual Property Segment Adjusted EBITDA	76,225		24,897
Total Adjusted EBITDA	$	189,996	$	108,207
(Provision) benefit for income taxes	(3,579)		(4,325)
Depreciation and amortization	(130,683)		(68,614)
Interest, net	(65,194)		(20,244)
Deferred revenues adjustment	(72)		(2,107)
Transaction related costs	(11,851)		(34,938)
Share-based compensation expense	(11,997)		(6,796)
Restructuring and impairment	(15,621)		(3,192)
Mark to market adjustment on financial instruments	83,013		(144,753)
Other	(10,700)		(5,224)
Net income (loss)	$	23,312	$	(181,986)
Dividends on preferred shares	(22,431)		—
Net income (loss) attributable to ordinary shares	$	881	$	(181,986)
	Nine Months Ended September 30,
	2021		2020 (As Restated)
Science Segment Adjusted EBITDA	$	305,119	$	226,551
Intellectual Property Segment Adjusted EBITDA	238,696		59,997
Total Adjusted EBITDA	$	543,815	$	286,548
Provision for income taxes	(18,016)		(13,693)
Depreciation and amortization	(392,513)		(176,200)
Interest, net	(141,156)		(72,306)
Deferred revenues adjustment	(4,465)		(7,421)
Transaction related costs	1,599		(70,154)
Share-based compensation expense	(38,518)		(31,121)
Restructuring and impairment	(121,988)		(26,792)
Mark to market adjustment on financial instruments	113,207		(224,175)
Other	(24,817)		(1,586)
Net loss	$	(82,852)	$	(336,900)
Dividends on preferred shares	(22,431)		—
Net loss attributable to ordinary shares	$	(105,283)	$	(336,900)