Segment Information | Segment Information The Company accounts for its segment information in accordance with the provisions of ASC 280-10, “Segment Reporting.” ASC 280-10 establishes annual and interim reporting standards for operating segments of a company. ASC 280-10 requires disclosures of selected segment-related financial information about products, major customers, and geographic areas based on the Company’s internal accounting methods. The Company is organized into two operating segments for purposes of making operating decisions and assessing performance. The Business segment facilitates real-time online interactions – chat, voice and content delivery across multiple channels and screens for global corporations of all sizes. The Consumer segment facilitates online transactions between Experts and Users and sells its services to consumers. Both segments currently generate their revenue primarily in the United States. The chief operating decision maker, who is the chief executive officer, evaluates performance, makes operating decisions, and allocates resources based on the operating income of each segment. The reporting segments follow the same accounting polices used in the preparation of the Company’s condensed consolidated financial statements which are described in the summary of significant accounting policies. The Company allocates cost of revenue, sales and marketing and amortization of purchased intangibles to the segments, but it does not allocate product development expenses, general and administrative expenses, restructuring costs and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no inter-segment sales. Summarized financial information by segment for the three months ended September 30, 2016 , based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands): Business Consumer Corporate Consolidated Revenue: Hosted services – Business $ 44,553 $ — $ — $ 44,553 Hosted services – Consumer — 4,044 — 4,044 Professional services 5,921 — — 5,921 Total revenue 50,474 4,044 — 54,518 Cost of revenue 14,215 622 — 14,837 Sales and marketing 20,278 1,789 — 22,067 Amortization of purchased intangibles 1,013 — — 1,013 Unallocated corporate expenses — — 19,180 19,180 Operating income (loss) $ 14,968 $ 1,633 $ (19,180 ) $ (2,579 ) Summarized financial information by segment for the three months ended September 30, 2015 , based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands): Business Consumer Corporate Consolidated Revenue: Hosted services – Business $ 50,957 $ — $ — $ 50,957 Hosted services – Consumer — 3,661 — 3,661 Professional services 6,139 — — 6,139 Total revenue 57,096 3,661 — 60,757 Cost of revenue 17,652 573 — 18,225 Sales and marketing 21,333 1,953 — 23,286 Amortization of purchased intangibles 1,193 — — 1,193 Unallocated corporate expenses — — 16,154 16,154 Operating income (loss) $ 16,918 $ 1,135 $ (16,154 ) $ 1,899 Summarized financial information by segment for the nine months ended September 30, 2016 , based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands): Business Consumer Corporate Consolidated Revenue: Hosted services – Business $ 137,240 $ — $ — $ 137,240 Hosted services – Consumer — 12,048 — 12,048 Professional services 17,374 — — 17,374 Total revenue 154,614 12,048 — 166,662 Cost of revenue 46,145 2,065 — 48,210 Sales and marketing 62,606 5,225 — 67,831 Amortization of purchased intangibles 2,954 — — 2,954 Unallocated corporate expenses — — 58,802 58,802 Operating income (loss) $ 42,909 $ 4,758 $ (58,802 ) $ (11,135 ) Summarized financial information by segment for the nine months ended September 30, 2015 , based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision maker, follows (amounts in thousands): Business Consumer Corporate Consolidated Revenue: Hosted services – Business $ 151,767 $ — $ — $ 151,767 Hosted services – Consumer — 11,219 — 11,219 Professional services 16,875 — — 16,875 Total revenue 168,642 11,219 — 179,861 Cost of revenue 50,752 1,779 — 52,531 Sales and marketing 66,865 5,097 — 71,962 Amortization of purchased intangibles 3,683 — — 3,683 Unallocated corporate expenses — — 59,522 59,522 Operating income (loss) $ 47,342 $ 4,343 $ (59,522 ) $ (7,837 ) Geographic Information The Company is domiciled in the United States and has international operations in the United Kingdom, Asia-Pacific, Latin America and Western Europe, particularly France and Germany. The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 United States $ 35,114 $ 39,972 $ 111,177 $ 120,409 Other Americas (1) 2,073 3,589 5,165 9,437 Total Americas 37,187 43,561 116,342 129,846 EMEA (2) (4) 12,588 13,237 36,468 38,443 APAC (3) 4,743 3,959 13,852 11,572 Total revenue $ 54,518 $ 60,757 $ 166,662 $ 179,861 (1) Canada, Latin America and South America (2) Europe, the Middle East and Africa (“EMEA”) (3) Asia-Pacific (“APAC”) (4) Includes revenues from the United Kingdom of $8.9 million and $25.7 million for the three and nine months ended September 30, 2016, respectively. For the three and nine months ended September 30, 2015, revenues from the United Kingdom were $9.8 million and $28.1 million , respectively. The following table presents the Company’s long-lived assets by geographic region for the periods presented (amounts in thousands): September 30, December 31, 2016 2015 United States $ 94,716 $ 96,362 Israel 14,589 16,393 Australia 9,161 8,290 Netherlands 7,358 8,285 Other (1) 2,181 2,482 Total long-lived assets $ 128,005 $ 131,812 (1) United Kingdom, Germany, Japan, France and Italy No individual customer accounted for 10% or more of consolidated revenue for any of the periods presented. No individual customer accounted for 10% or more of accounts receivable as of September 30, 2016 and December 31, 2015 |