Note 12 - Segment Reporting

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

The Company provides business process outsourcing services (“BPO”) to clients in various industries and geographical locations. Our approach is focused on providing our clients with the best possible combination of services and delivery locations to meet our clients' needs in the best and most efficient manner. Our Global Chief Executive Officer (CEO) and President, who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a geographical basis.

Our operating business model is focused on the geographies in which we operate. Our CODM reviews the performance and makes resource allocation geography-wise, hence the geographical level represents the operating segments of Startek Inc.

We report our results of operations in six reportable segments, as follows:

a) Americas
b) India and Sri Lanka
c) Malaysia 
d) Middle East 
e) Argentina & Peru
f) Rest of World

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Revenue:
Americas		54,743		64,597		203,348		191,244
India & Sri Lanka		29,471		19,821		75,032		60,771
Malaysia		12,721		13,933		41,502		37,835
Middle East		54,829		43,665		143,783		114,425
Argentina & Peru		9,758		9,312		27,060		28,517
Rest of World		11,265		11,359		34,163		32,961
Total	$	172,787	$	162,687	$	524,888	$	465,753

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Operating income (loss):
Americas		(5,070	)		4,052			2,194			4,723
India & Sri Lanka		3,621			(1,633	)		4,987			(2,538	)
Malaysia		3,873			3,580			11,701			8,520
Middle East		7,086			3,156			15,836			5,371
Argentina & Peru		557			854			121			494
Rest of World		874			609			2,138			1,335
Segment operating income		10,941			10,618			36,977			17,905
Startek consolidation adjustments
Goodwill impairment		-			-			-			(22,708	)
Intangible amortization		(2,602	)		(2,603	)		(7,745	)		(7,766	)
Total operating income	$	8,339		$	8,015		$	29,232		$	(12,569	)

A single client accounted for 19% and 21% of the consolidated total net revenue during the three months ended September 30, 2021 and 2020, respectively, and 18% and 19% during the nine months ended September 30, 2021 and 2020, respectively.
 

Property, plant and equipment, net by geography based on the location of the assets are presented below:

	As on		As on
	September 30, 2021		December 31, 2020
Property, plant and equipment, net:
Americas		11,999		14,455
India & Sri Lanka		9,101		8,069
Malaysia		3,106		3,749
Middle East		7,025		4,736
Argentina & Peru		1,604		1,257
Rest of World		2,393		1,959
Total	$	35,228	$	34,225