Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s businesses are based on the organizational structure used by the chief operating decision maker (“CODM”). The Company aggregates its operating segments into two reportable segments: Digital Media and Cybersecurity and Martech.

The accounting policies of the businesses are the same as those described in Note 2 — Basis of Presentation and Summary of Significant Accounting Policies. The Company evaluates performance based on revenue and profit or loss from operations.

Information on reportable segments and reconciliation to income from operations is as follows (in thousands):

	Years Ended December 31,
	2023		2022		2021
Revenue by reportable segment:
Digital Media	$	1,072,971	$	1,079,172	$	1,069,300
Cybersecurity and Martech	291,209		312,626		348,611
Elimination of inter-segment revenues (1)	(152)		(801)		(1,189)
Total segment revenues	1,364,028		1,390,997		1,416,722
Corporate	—		—		—
Total revenues	$	1,364,028	$	1,390,997	$	1,416,722
Operating costs and expenses by reportable segment (3):
Digital Media	931,980		880,240		851,807
Cybersecurity and Martech (4)	248,151		262,426		338,464
Elimination of inter-segment operating expenses	(152)		(801)		(1,189)
Total segment operating expenses	1,179,979		1,141,865		1,189,082
Corporate (2)(4)	51,438		50,191		60,300
Total operating costs and expenses	1,231,417		1,192,056		1,249,382
Operating income by reportable segment:
Digital Media operating income	140,991		198,932		217,493
Cybersecurity and Martech operating income (4)	43,058		50,200		10,147
Total segment operating income	184,049		249,132		227,640
Corporate (2)(4)	(51,438)		(50,191)		(60,300)
Income from operations	$	132,611	$	198,941	$	167,340

(1)Inter-segment revenues in the Digital Media reportable segment were $0.2 million, $0.8 million, and $0.8 million, for the years ended December 31, 2023, 2022, and 2021, respectively. Inter-segment revenues in the Cybersecurity and Martech reportable segment were $0.0 million, $0.0 million, and $0.4 million, for the years ended December 31, 2023, 2022, and 2021, respectively.

(2)Corporate includes costs associated with general and administrative and other expenses that are managed on a global basis and that are not directly attributable to any particular segment.

(3)Operating expenses for each segment include cost of sales and other operating expenses that are directly attributable to the segment, such as employee compensation expense, local sales and marketing expenses, engineering and network operations expense, depreciation and amortization and other administrative expenses. For the twelve months ended December 31, 2023 and 2022, the Company had an impairment to goodwill within operating costs and expenses for Digital Media. For the twelve months ended December 31, 2021, the Company had an impairment to goodwill within operating costs and expenses for Cybersecurity and Martech.

(4)For the year ended December 31, 2021, approximately $19.2 million of general and administrative costs were reflected as Corporate operating costs and expenses in the Company’s December 31, 2021 Form 10-K, however, should have been reflected as an operating cost for the Cybersecurity and Martech reportable segment. The Company reclassified these costs in the table above as an operating cost for the Cybersecurity and Martech reportable segment and as a reduction of operating costs for Corporate, as well as the resulting impact in operating income (loss) for Cybersecurity and Martech and Corporate. The reclassification has no impact on consolidated operating income (loss) from continuing operations for the year ended December 31, 2021.

The CODM does not use Balance Sheet information in connection with operating and investment decisions and as such that information is not presented. The CODM does use capital expenditures by reportable segment in connection with operating and investment decisions. Accordingly, the following segment information is presented for Digital Media and Cybersecurity and Martech.

	Year ended December 31,
	2023		2022		2021
Capital expenditures:
Digital Media	$	83,921	$	85,049	$	80,877
Cybersecurity and Martech	24,712		21,094		17,611
Total from reportable segments	108,633		106,143		98,488
Corporate	96		11		—
Capital expenditures of discontinued operations	—		—		15,252
Total capital expenditures	$	108,729	$	106,154	$	113,740
Depreciation and amortization:
Digital Media	$	184,321	$	184,658	$	193,661
Cybersecurity and Martech	52,618		48,714		55,344
Total from reportable segments	236,939		233,372		249,005
Corporate	27		28		288
Depreciation and amortization of discontinued operations	—		—		9,010
Total depreciation and amortization	$	236,966	$	233,400	$	258,303

The Company maintains operations in the U.S., Canada, Ireland, the United Kingdom, India, and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands).

	Year ended December 31,
	2023		2022		2021
Revenues:
United States	$	1,137,857	$	1,181,936	$	1,187,207
All other countries	226,171		209,061		229,515
Total	$	1,364,028	$	1,390,997	$	1,416,722

Long-lived assets, excluding goodwill and other intangible assets are as follows (in thousands):

	December 31,
	2023		2022
Long-lived assets:
United States	$	161,913	$	171,957
All other countries	50,820		46,867
Total	$	212,733	$	218,824