Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

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 U.S. The chief operating decision-makers evaluate performance, make operating decisions, and allocate 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 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 and income tax expense because management does not use this information to measure performance of the operating segments. There are currently no intersegment sales.

Summarized financial information by segment for the year ended December 31, 2013, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):

	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	150,004	$	—	$	—		$	150,004
Hosted services – Consumer	—		15,091		—			15,091
Professional services	12,710		—		—			12,710
Total revenue	162,714		15,091		—			177,805
Cost of revenue	40,132		2,423		—			42,555
Sales and marketing	57,011		5,477		—			62,488
Amortization of purchased intangibles	871		—					871
Unallocated corporate expenses	—		—		76,365			76,365
Operating income (loss)	$	64,700	$	7,191	$	(76,365	)	$	(4,474	)

Summarized financial information by segment for the year ended December 31, 2012, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):

	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	132,310	$	—	$	—		$	132,310
Hosted services – Consumer	—		15,111		—			15,111
Professional services	9,988		—		—			9,988
Total revenue	142,298		15,111		—			157,409
Cost of revenue	33,450		2,129		—			35,579
Sales and marketing	44,087		5,527		—			49,614
Amortization of purchased intangibles	218		—		—			218
Unallocated corporate expenses	—		—		61,657			61,657
Operating income (loss)	$	64,543	$	7,455	$	(61,657	)	$	10,341

Summarized financial information by segment for the year ended December 31, 2011, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows (amounts in thousands):

	Business		Consumer		Corporate			Consolidated
Revenue:
Hosted services – Business	$	111,934	$	—	$	—		$	111,934
Hosted services – Consumer	—		14,522		—			14,522
Professional services	6,633		—		—			6,633
Total revenue	118,567		14,522		—			133,089
Cost of revenue	29,793		3,402		—			33,195
Sales and marketing	32,690		6,194		—			38,884
Amortization of purchased intangibles	109		—		—			109
Unallocated corporate expenses	—		—		41,266			41,266
Operating income (loss)	$	55,975	$	4,926	$	(41,266	)	$	19,635

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 years ended (amounts in thousands):

	December 31,
	2013		2012		2011
United States	$	123,590	$	118,208	$	101,519
United Kingdom	31,655		22,125		18,250
Other Countries	22,560		17,076		13,320
Total revenue	$	177,805	$	157,409	$	133,089

The following table presents the Company's long-lived assets by geographic region for the years ended (amounts in thousands):

	December 31,
	2013		2012
United States	$	34,422	$	35,711
Israel	22,580		23,750
Australia	9,827		10,361
Netherlands	3,540		—
United Kingdom	1,539		2,600
Total long-lived assets	$	71,908	$	72,422