Segment Information

6 Months Ended

Jun. 30, 2014

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 United States. 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 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 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 June 30, 2014, 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	$	41,996	$	—	$	—		$	41,996
Hosted services – Consumer	—		4,539		—			4,539
Professional services	4,552		—		—			4,552
Total revenue	46,548		4,539		—			51,087
Cost of revenue	12,483		678		—			13,161
Sales and marketing	18,799		1,278		—			20,077
Amortization of purchased intangibles	206		—		—			206
Unallocated corporate expenses	—		—		19,124			19,124
Operating income (loss)	$	15,060	$	2,583	$	(19,124	)	$	(1,481	)

Summarized financial information by segment for the three months ended June 30, 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	$	36,634	$	—	$	—		$	36,634
Hosted services – Consumer	—		3,776		—			3,776
Professional services	2,819		—		—			2,819
Total revenue	39,453		3,776		—			43,229
Cost of revenue	9,974		638		—			10,612
Sales and marketing	14,243		1,256		—			15,499
Amortization of purchased intangibles	224		—		—			224
Unallocated corporate expenses	—		—		18,882			18,882
Operating income (loss)	$	15,012	$	1,882	$	(18,882	)	$	(1,988	)

Summarized financial information by segment for the six months ended June 30, 2014, 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	$	81,677	$	—	$	—		$	81,677
Hosted services – Consumer	—		8,448		—			8,448
Professional services	8,790		—		—			8,790
Total revenue	90,467		8,448		—			98,915
Cost of revenue	23,627		1,269		—			24,896
Sales and marketing	35,717		2,755		—			38,472
Amortization of purchased intangibles	396		—		—			396
Unallocated corporate expenses	—		—		37,573			37,573
Operating income (loss)	$	30,727	$	4,424	$	(37,573	)	$	(2,422	)

Summarized financial information by segment for the six months ended June 30, 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	$	72,778	$	—	$	—		$	72,778
Hosted services – Consumer	—		7,395		—			7,395
Professional services	5,552		—		—			5,552
Total revenue	78,330		7,395		—			85,725
Cost of revenue	19,510		1,236		—			20,746
Sales and marketing	27,449		2,528		—			29,977
Amortization of purchased intangibles	448		—		—			448
Unallocated corporate expenses	—		—		37,140			37,140
Operating income (loss)	$	30,923	$	3,631	$	(37,140	)	$	(2,586	)

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				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
United States	$	33,765	$	28,966	$	64,865	$	57,606
Other Americas (1)	2,172		1,825		4,321		3,792
Total Americas	35,937		30,791		69,186		61,398
EMEA (2)	11,055		8,051		21,569		15,972
APAC (3)	4,095		4,387		8,160		8,355
Total revenue	$	51,087	$	43,229	$	98,915	$	85,725

⁽¹⁾ Canada, Latin America and South America

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

⁽³⁾ Asia-Pacific (“APAC”)

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

	June 30,		December 31,
	2014		2013
United States	$	39,347	$	34,422
Israel	20,551		22,580
Australia	9,058		9,827
Netherlands	7,696		3,540
United Kingdom	1,423		1,539
Total long-lived assets	$	78,075	$	71,908

No individual customer accounted for 10% or more of consolidated revenue for any of the periods presented. One customer accounted for approximately 20% and 12% of accounts receivable as of June 30, 2014 and December 31, 2013, respectively.