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, 2017, 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	$	46,378	$	—	$	—		$	46,378
Hosted services – Consumer	—		4,355		—			4,355
Professional services	5,760		—		—			5,760
Total revenue	52,138		4,355		—			56,493
Cost of revenue	13,681		860		—			14,541
Sales and marketing	19,554		2,049		—			21,603
Amortization of purchased intangibles	470		—		—			470
Unallocated corporate expenses	—		—		20,124			20,124
Operating income (loss)	$	18,433	$	1,446	$	(20,124	)	$	(245	)

Summarized financial information by segment for the three months ended September 30, 2016, 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	$	44,553	$	—	$	—		$	44,553
Hosted services – Consumer	—		4,044		—			4,044
Professional services	5,921		—		—			5,921
Total revenue	50,474		4,044		—			54,518
Cost of revenue	14,215		622		—			14,837
Sales and marketing	20,278		1,789		—			22,067
Amortization of purchased intangibles	1,013		—		—			1,013
Unallocated corporate expenses	—		—		19,180			19,180
Operating income (loss)	$	14,968	$	1,633	$	(19,180	)	$	(2,579	)

Summarized financial information by segment for the nine months ended September 30, 2017, 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	$	131,798	$	—	$	—		$	131,798
Hosted services – Consumer	—		12,985		—			12,985
Professional services	16,703		—		—			16,703
Total revenue	148,501		12,985		—			161,486
Cost of revenue	40,794		2,662		—			43,456
Sales and marketing	60,338		6,357		—			66,695
Amortization of purchased intangibles	1,412		—		—			1,412
Unallocated corporate expenses	—		—		61,854			61,854
Operating income (loss)	$	45,957	$	3,966	$	(61,854	)	$	(11,931	)

Summarized financial information by segment for the nine months ended September 30, 2016, 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	$	137,240	$	—	$	—		$	137,240
Hosted services – Consumer	—		12,048		—			12,048
Professional services	17,374		—		—			17,374
Total revenue	154,614		12,048		—			166,662
Cost of revenue	46,145		2,065		—			48,210
Sales and marketing	62,606		5,225		—			67,831
Amortization of purchased intangibles	2,954		—		—			2,954
Unallocated corporate expenses	—		—		58,802			58,802
Operating income (loss)	$	42,909	$	4,758	$	(58,802	)	$	(11,135	)

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,
	2017		2016		2017		2016
United States	$	35,519	$	35,114	$	101,282	$	111,177
Other Americas ⁽¹⁾	1,744		2,073		5,684		5,165
Total Americas	37,263		37,187		106,966		116,342
EMEA ^{(2) (4)}	14,175		12,588		41,640		36,468
APAC ⁽³⁾	5,055		4,743		12,880		13,852
Total revenue	$	56,493	$	54,518	$	161,486	$	166,662

⁽¹⁾ Canada, Latin America and South America

⁽²⁾ Europe, the Middle East and Africa (“EMEA”)

⁽³⁾ Asia-Pacific (“APAC”)

⁽⁴⁾ Includes revenues from the United Kingdom of $10.2 million and $8.7 million for three months ended and $28.4 million and $25.0 million for the nine months ended September 30, 2017 and 2016, respectively.

The following table presents the Company’s long-lived assets by geographic region for the periods presented (amounts in thousands):



	September 30,		December 31,
	2017		2016
United States	$	94,476	$	93,845
Israel	12,728		13,940
Australia	9,184		9,496
Netherlands	8,051		7,495
Other ⁽¹⁾	3,403		2,711
Total long-lived assets	$	127,842	$	127,487

⁽¹⁾ United Kingdom, Germany, Japan, France and Italy

No individual customer accounted for 10% or more of consolidated revenue for any of the periods presented. One customer accounted for approximately 10% of accounts receivable as of September 30, 2017. No individual customer accounted for 10% or more of accounts receivable as of December 31, 2016.