Operating Segments

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Operating Segments

Note 13 — Operating Segments

The Company's chief executive officer and the chief financial officer are the chief operating decision-maker (used in determining the Company's segments). The Company operates in three segments: Research, Consulting, and Events. These segments, which are also the Company's reportable segments, are based on the management structure of the Company and how the chief operating decision maker uses financial information to evaluate performance and determine how to allocate resources. The Company’s products and services are delivered through each segment as described below.

The Research segment includes the revenues from all of the Company’s research products as well as consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company’s research organization. Research segment costs include the cost of the organizations responsible for developing and delivering these products in addition to the costs of the product management organization responsible for product pricing and packaging, and the launch of new products.

The Consulting segment includes the revenues and the related costs of the Company’s project consulting organization. The project consulting organization delivers a majority of the Company’s project consulting revenue and certain advisory services.

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events. As of January 1, 2022, the Company realigned its events sales costs from selling and marketing expense to the Events segment as they now fall under the Events management structure. The 2021 amounts have been revised to conform to the current presentation.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, interest and other income (expense), and gains on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

The Company provides information by reportable segment in the tables below (in thousands):

	Research Segment			Consulting Segment			Events Segment			Consolidated
Three Months Ended September 30, 2022
Research revenues	$	87,038		$	—		$	—		$	87,038
Consulting revenues		9,015			28,367			—			37,382
Events revenues		—			—			3,259			3,259
Total segment revenues		96,053			28,367			3,259			127,679
Segment expenses		(33,058	)		(14,747	)		(3,377	)		(51,182	)
Selling, marketing, administrative and other expenses											(64,588	)
Amortization of intangible assets											(3,352	)
Interest expense, other income, and gains on investments											(238	)
Income before income taxes										$	8,319

	Research Segment			Consulting Segment			Events Segment			Consolidated
Three Months Ended September 30, 2021
Research revenues	$	79,876		$	—		$	—		$	79,876
Consulting revenues		10,587			26,806			—			37,393
Events revenues		—			—			867			867
Total segment revenues		90,463			26,806			867			118,136
Segment expenses		(28,657	)		(13,061	)		(2,888	)		(44,606	)
Selling, marketing, administrative and other expenses											(63,295	)
Amortization of intangible assets											(3,696	)
Interest expense, other expense, and gains on investments											(1,251	)
Income before income taxes										$	5,288

	Research Segment			Consulting Segment			Events Segment			Consolidated
Nine Months Ended September 30, 2022
Research revenues	$	262,265		$	—		$	—		$	262,265
Consulting revenues		31,126			83,949			—			115,075
Events revenues		—			—			23,556			23,556
Total segment revenues		293,391			83,949			23,556			400,896
Segment expenses		(100,135	)		(43,123	)		(16,179	)		(159,437	)
Selling, marketing, administrative and other expenses											(195,660	)
Amortization of intangible assets											(10,068	)
Interest expense, other income, and gains on investments											(1,114	)
Income before income taxes										$	34,617

	Research Segment			Consulting Segment			Events Segment			Consolidated
Nine Months Ended September 30, 2021
Research revenues	$	235,846		$	—		$	—		$	235,846
Consulting revenues		36,160			80,743			—			116,903
Events revenues		—			—			7,838			7,838
Total segment revenues		272,006			80,743			7,838			360,587
Segment expenses		(88,791	)		(38,237	)		(8,383	)		(135,411	)
Selling, marketing, administrative and other expenses											(186,117	)
Amortization of intangible assets											(11,567	)
Integration costs											(334	)
Interest expense, other expense, and gains on investments											(4,117	)
Income before income taxes										$	23,041