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, 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 16,364 573 — 16,937 Sales and marketing 21,333 1,953 — 23,286 Amortization of purchased intangibles 1,193 — — 1,193 Unallocated corporate expenses — — 17,442 17,442 Operating income (loss) $ 18,206 $ 1,135 $ (17,442 ) $ 1,899 Summarized financial information by segment for the three months ended September 30, 2014 , 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 $ 43,702 $ — $ — $ 43,702 Hosted services – Consumer — 3,992 — 3,992 Professional services 5,093 — — 5,093 Total revenue 48,795 3,992 — 52,787 Cost of revenue 12,679 625 — 13,304 Sales and marketing 19,488 1,490 — 20,978 Amortization of purchased intangibles 407 — — 407 Unallocated corporate expenses — — 18,499 18,499 Operating income (loss) $ 16,221 $ 1,877 $ (18,499 ) $ (401 ) 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 49,299 1,779 — 51,078 Sales and marketing 66,865 5,097 — 71,962 Amortization of purchased intangibles 3,683 — — 3,683 Unallocated corporate expenses — — 60,975 60,975 Operating income (loss) $ 48,795 $ 4,343 $ (60,975 ) $ (7,837 ) Summarized financial information by segment for the nine months ended September 30, 2014 , 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 $ 125,378 $ — $ — $ 125,378 Hosted services – Consumer — 12,441 — 12,441 Professional services 13,883 — — 13,883 Total revenue 139,261 12,441 — 151,702 Cost of revenue 36,306 1,894 — 38,200 Sales and marketing 55,203 4,246 — 59,449 Amortization of purchased intangibles 803 — — 803 Unallocated corporate expenses — — 56,073 56,073 Operating income (loss) $ 46,949 $ 6,301 $ (56,073 ) $ (2,823 ) 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, 2015 2014 2015 2014 United States $ 39,972 $ 34,409 $ 120,409 $ 99,273 Other Americas (1) 3,589 2,936 9,437 7,259 Total Americas 43,561 37,345 129,846 106,532 EMEA (2) 13,237 11,049 38,443 32,618 APAC (3) 3,959 4,393 11,572 12,552 Total revenue $ 60,757 $ 52,787 $ 179,861 $ 151,702 (1) Canada, Latin America and South America (2) Europe, the Middle East and Africa (“EMEA”) (3) Asia-Pacific (“APAC”) The following table presents the Company’s long-lived assets by geographic region for the periods presented (amounts in thousands): September 30, December 31, 2015 2014 United States $ 107,982 $ 109,006 Israel 17,122 18,982 Australia 7,539 8,500 Netherlands 9,159 7,686 Other (1) 2,739 1,940 Total long-lived assets $ 144,541 $ 146,114 (1) United Kingdom, Germany, Japan 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, 2015 . One customer accounted for approximately 22% of accounts receivable as of December 31, 2014 . |