Segment Information

3 Months Ended

Mar. 31, 2022

Segment Information

Segment Information

13. Segment Information

Beginning in 2021, the Company has two reportable segments that are also our operating segments: Vertical Software and Insurance. Our reportable segments have been identified based on how our CODM manages our business, makes operating decisions and evaluates operating and financial performance. The chief executive officer acts as the CODM and reviews financial and operational information for our two reportable segments. Operating segments are components of an enterprise for which separate discrete financial information is available and operational results are regularly evaluated by the CODM for the purposes of making decisions regarding resource allocation and assessing performance.

Our Vertical Software segment primarily consists of a vertical software platform for the home, providing software and services to home services companies, such as home inspectors, moving companies, utility companies, title companies and others, and includes software fee revenues from companies, and non-insurance revenue. The Vertical Software segment also includes per-lead and per-quote-based revenue from insurance companies.

Our Insurance segment offers various forms of homeowner insurance policies through its own insurance carrier and certain homeowner and auto insurance policies through its licensed insurance agency. The Insurance segment also includes home warranty service revenue.

The following table provides the Company’s revenue by segment:

	Three Months Ended March 31,
	2022		2021
Segment revenues:
Vertical Software	$	34,688	$	24,937
Insurance		27,873		1,805
Total segment revenue	$	62,561	$	26,742

Our segment operating and financial performance measure is segment Adjusted EBITDA (loss). Segment Adjusted EBITDA (loss) is defined as revenue less the following expenses associated with our segments: cost of revenue, sales and marketing, product and technology, and general and administrative expenses. Segment Adjusted EBITDA (loss) also excludes non-cash items or items that management does not consider are reflective our ongoing core operations.

Currently, we do not allocate any shared expenses to the reportable segments. These expenses are included in Corporate and Other. Corporate and Other includes shared expenses such as sales and marketing, certain product and technology, accounting, human resources, legal and general and administrative, and other income, expenses, gains and losses that are not allocated in assessing segment performance due to their function. Such transactions are excluded from the reportable segments results but included in reported consolidated results.

The reconciliation of segment Adjusted EBITDA (loss) to consolidated loss from operations below includes the effects of corporate and other items that the CODM does not consider in assessing segment performance.

The following tables provide financial information for the two reportable segments and reconciliations to consolidated financial information for the periods presented:

	Three Months Ended March 31,
	2022		2021
Segment adjusted EBITDA (loss):
Vertical Software	$	2,984	$	3,151
Insurance		3,286		508
Corporate and Other		(13,342)		(13,261)
Total segment adjusted EBITDA (loss)		(7,072)		(9,602)
Reconciling items:
Depreciation and amortization		(6,483)		(2,463)
Non-cash stock-based compensation expense		(5,854)		(16,835)
Acquisition and related expense		(895)		(728)
Non-cash long-lived asset impairment charge		(69)		(68)
Revaluation of contingent consideration		(3,205)		355
Investment income and realized gains		(197)		—
Non-cash bonus expense		(1,526)		(290)
Operating loss	$	(25,301)	$	(29,631)

The CODM does not review assets on a segment basis.

All of the Company’s revenue is generated in the United States. As of March 31, 2022 and December 31, 2021, the Company did not have assets located outside of the United States.