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Operations by Segments and Geographic Areas
 6 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Operations by Segments and Geographic Areas Operations by Segments and Geographic Areas
Segment Information
    Operating segments are the components of our business for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our operating segments are generally organized by the type of product or service offered and by geography.
During the quarter ended September 30, 2021 we realigned our internal financial reporting to provide for more specific visibility into key product lines, which resulted in a change to our externally reportable segments. Specifically, our prior Cloud Solutions segment was renamed Payment Platforms and includes the revenue and operating results of our Paymode-X and PTX payment platforms. Our Legal Spend Management Solutions have been presented as a stand-alone operating segment, having previously been a component of our Cloud Solutions segment. Finally, our Financial Messaging solutions, previously a component of our Cloud Solutions segment, has been included as a component of our Banking Solutions segment. Our prior Payments and Documents segment has been renamed to Traditional Solutions, with no change to the composition of the revenue and operating activity included in this segment. These changes are reflected for all financial periods presented.
    Similar operating segments have been aggregated into the following five reportable segments:
Payment Platforms. Our Payment Platforms segment includes our Paymode-X and PTX solutions, our largest and fastest growing payment platforms. These solutions are SaaS technology offerings through which businesses can streamline the invoice-to-pay process, automate workflows, accelerate approvals and enhance efficiency and security. Each solution supports a variety of payment options including virtual card, ACH, check, wire and others. These solutions are highly scalable, easy to implement, secure and cost effective. Revenue within this segment is generally recognized on a subscription or transaction basis.
Banking Solutions. Our Banking Solutions segment provides solutions that are specifically designed for banking and financial institution customers. Our Banking Solutions products are sold predominantly on a hosted basis, with revenue recognized on a subscription or transaction basis.
Legal Spend Management. Our legal spend management solutions enable customers to create more efficient processes for managing invoices generated by outside law firms while offering insight into important legal spend factors such as expense monitoring and outside counsel performance. Revenue within this segment is generally recognized on a subscription or transaction basis.
Traditional Solutions. Our Traditional Solutions segment supplies financial business process management software solutions, including making and collecting payments, sending and receiving invoices, and generating and storing business documents. When licensed for on-premise deployment, software license revenue is typically recorded upon delivery of the software and commencement of the license term. If the solution is hosted by us, we typically record revenue over time. Professional services revenue is normally recorded as we perform the work and software support and maintenance revenue is recorded ratably over the support period.
Other. Our Other segment consists of our fraud and financial crime solutions and our healthcare solutions. The Other segment loss reported below is attributable to the operating results of our fraud and financial crime solutions, which reflects the revenue contribution from a legacy sales channel we acquired and the burden of certain other centralized costs; however, our fraud solutions are sold by several of our operating segments. Our healthcare solutions focus on eliminating paper intensive processes and providing electronic signature and mobile document capabilities to allow healthcare organizations to improve efficiency and reduce costs. Software revenue for perpetual licenses of our fraud and financial crime and healthcare products is typically recorded upon delivery of the software and commencement of the license term. Professional services revenue is recorded as we perform the work and software support and maintenance revenue is recorded ratably over the support period which is normally twelve months.
    Our chief operating decision maker assesses segment performance based on a variety of factors that normally include segment revenue and a segment measure of profit or loss. Each segment’s measure of profit or loss is on a pre-tax basis and excludes certain items as presented in our reconciliation of the measure of total segment profit to GAAP income (loss) before income taxes that follows. There are no inter-segment sales; accordingly, the measure of segment revenue and profit or loss reflects only revenues from external customers. The costs of certain corporate level expenses, primarily general and administrative expenses, are allocated to our operating segments based on a percentage of the segment’s revenues.
    We do not track or assign our assets by operating segment.
    Segment information for the three and six months ended December 31, 2021 and 2020 according to the segment descriptions above, is as follows:
Three Months Ended December 31,Six Months Ended December 31,
2021202020212020
(in thousands)
Segment revenue:
Payment Platforms$35,972 $27,542 $69,779 $52,909 
Banking Solutions49,959 44,249 97,640 89,478 
Legal Spend Management22,456 21,849 44,519 42,399 
Traditional Solutions15,684 17,178 31,876 34,574 
Other4,716 5,206 8,578 9,029 
Total segment revenue$128,787 $116,024 $252,392 $228,389 
Segment measure of profit (loss):
Payment Platforms$5,822 $6,015 $11,646 $11,770 
Banking Solutions3,697 3,891 7,450 11,103 
Legal Spend Management4,468 5,656 9,676 10,242 
Traditional Solutions3,571 4,087 6,685 8,187 
Other(3,548)(1,945)(7,524)(5,052)
Total measure of segment profit$14,010 $17,704 $27,933 $36,250 
    A reconciliation of the total measure of segment profit to our GAAP loss before income taxes is as follows:
Three Months Ended December 31,Six Months Ended December 31,
2021202020212020
(in thousands)
Total measure of segment profit$14,010 $17,704 $27,933 $36,250 
Less:
Amortization of acquisition-related intangible assets(5,180)(5,142)(10,251)(10,171)
Stock-based compensation plan expense(13,657)(12,173)(27,569)(22,146)
Acquisition and integration-related expenses(142)(1,095)(343)(1,340)
Restructuring expense28 (921)(358)(991)
Excess depreciation, including associated with restructuring events(357)(528)(357)(528)
Other non-core expense (281)(48)(391)(96)
Shareholder engagement fees(832)— (1,779)— 
Asset write-off(71)— (71)— 
Costs associated with pending Merger(3,507)— (3,507)— 
Other expense, net of pension adjustments(930)(1,139)(1,938)(2,165)
Loss before income taxes$(10,919)$(3,342)$(18,631)$(1,187)
    The following depreciation and other amortization expense amounts are included in the measure of segment profit:
Three Months Ended December 31,Six Months Ended December 31,
2021202020212020
(in thousands)
Depreciation and other amortization expense:
Payment Platforms$2,727 $2,456 $5,558 $4,843 
Banking Solutions4,040 3,294 7,975 6,458 
Legal Spend Management1,709 1,497 3,390 3,099 
Traditional Solutions692 270 1,054 540 
Other355 288 741 564 
Total depreciation and other amortization expense$9,523 $7,805 $18,718 $15,504 

Disaggregation of Revenue
    The tables below present our subscriptions revenue and total revenue disaggregated by major product classification for the three and six months ended December 31, 2021 and 2020.
Three Months Ended December 31, 2021Six Months Ended December 31, 2021
Subscription SoftwareProfessional Services, Maintenance and OtherTotalSubscriptionSoftwareProfessional Services, Maintenance and OtherTotal
(in thousands)
Payment Platforms
$35,721 $— $251 $35,972 $69,225 $— $554 $69,779 
Banking Solutions43,094 28 6,837 49,959 84,029 105 13,506 97,640 
Legal Spend Management22,449 — 7 22,456 44,509 — 10 44,519 
Traditional Solutions6,076 437 9,171 15,684 12,102 876 18,898 31,876 
Other1,142 688 2,886 4,716 2,113 1,099 5,366 8,578 
Total revenues$108,482 $1,153 $19,152 $128,787 $211,978 $2,080 $38,334 $252,392 
Three Months Ended December 31, 2020Six Months Ended December 31, 2020
SubscriptionSoftwareProfessional Services, Maintenance and OtherTotalSubscriptionSoftwareProfessional Services, Maintenance and OtherTotal
(in thousands)
Payment Platforms
$27,432 $— $110 $27,542 $52,712 $— $197 $52,909 
Banking Solutions37,298 11 6,940 44,249 75,251 115 14,112 89,478 
Legal Spend Management21,846 — 3 21,849 42,396 — 3 42,399 
Traditional Solutions5,615 638 10,925 17,178 11,296 1,386 21,892 34,574 
Other1,207 1,153 2,846 5,206 2,127 1,278 5,624 9,029 
Total revenues$93,398 $1,802 $20,824 $116,024 $183,782 $2,779 $41,828 $228,389 
For the three and six months ended December 31, 2021, we derived 84% of our revenue from subscription-based arrangements. The majority of our non-subscription revenue is derived from software support and maintenance fees and from professional services, with the largest concentration of this revenue being derived from our legacy business payments and documents products in our Traditional Solutions segment.
    Geographic Information
    We have presented geographic information about our revenues below. This presentation allocates revenue based on the point of sale, not the location of the customer. Accordingly, we derive revenues from geographic locations based on the location of the customer that would vary from the geographic areas listed here.
Three Months Ended December 31,Six Months Ended December 31,
2021202020212020
(in thousands)
Revenues from unaffiliated customers:
United States$79,045 $70,244 $154,039 $139,225 
United Kingdom30,370 28,335 61,000 56,029 
Switzerland12,967 12,009 25,362 22,876 
Other6,405 5,436 11,991 10,259 
Total revenues from unaffiliated customers$128,787 $116,024 $252,392 $228,389 
    Long-lived assets based on geographical location, excluding deferred tax assets and intangible assets, were as follows:
At December 31,At June 30,
20212021
(in thousands)
Long-lived assets:
United States$78,762 $82,816 
United Kingdom42,893 44,455 
Other 21,513 17,453 
Total long-lived assets$143,168 $144,724