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Segment Information
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has two reportable segments: web presence and digital marketing. The products and services included in each of the two reportable segments are as follows:
Web Presence. The web presence segment consists of the Company's web hosting brands, including Bluehost and HostGator, as well as its domain-focused brands such as Domain.com, ResellerClub and LogicBoxes. This segment includes web hosting, website security, website design tools and services, e-commerce products, domain names and domain privacy. It also includes the sale of domain management services to resellers and end users, as well as premium domain names, and generates advertising revenue from domain name parking. The results presented below for the web presence segment include the former domain segment.
Digital Marketing. The digital marketing segment consists of Constant Contact email marketing tools and related products. This segment also generates revenue from sales of the Company's Constant Contact-branded website builder tool and Ecomdash inventory management and marketplace listing solution which was acquired in the third quarter of 2019. For most of 2019, the digital marketing segment also included the SinglePlatform digital storefront business, which was sold on December 5, 2019.
The Company measures profitability of these segments based on revenue, gross profit, and adjusted EBITDA. The Company's segments share certain resources, primarily related to sales and marketing, engineering and development, and general and administrative functions. Management allocates these costs to each respective segment based on a consistently applied methodology.
The CODM does not use asset information to allocate resources or make operating decisions.
The accounting policies of each segment are the same as those described in the summary of significant accounting policies; please refer to Note 2, Summary of Significant Accounting Policies, for further details. The Company recast the comparative information for the three months ended March 31, 2019 to conform with the two-segment presentation. The following tables contain financial information for each reportable segment for the three months ended March 31, 2019 and 2020:

Three Months Ended March 31, 2019

Web presence
 
Digital marketing
 
Total
 
(unaudited, in thousands)
Revenue
$
177,943

 
$
102,740

 
$
280,683

Gross profit
$
82,782

 
$
74,047

 
$
156,829

 
 
 
 
 
 
Net (loss) income
$
(9,426
)
 
$
5,938

 
$
(3,488
)
Interest expense, net(1)
19,529

 
17,394

 
36,923

Income tax expense
1,091

 
628

 
1,719

Depreciation
8,882

 
2,324

 
11,206

Amortization of other intangible assets
9,837

 
11,283

 
21,120

Stock-based compensation
5,933

 
3,083

 
9,016

Restructuring expenses
661

 
1,354

 
2,015

Adjusted EBITDA
$
36,507

 
$
42,004

 
$
78,511

 
Three Months Ended March 31, 2020
 
Web presence
 
Digital marketing
 
Total
 
(unaudited, in thousands)
Revenue
$
174,290

 
$
97,904

 
$
272,194

Gross profit
$
84,142

 
$
71,788

 
$
155,930

 
 
 
 
 
 
Net (loss) income
$
(7,234
)
 
$
4,990

 
$
(2,244
)
Interest expense, net(1)
15,604

 
16,960

 
32,564

Income tax expense
428

 
241

 
669

Depreciation
10,423

 
2,273

 
12,696

Amortization of other intangible assets
7,590

 
9,721

 
17,311

Stock-based compensation
6,590

 
3,246

 
9,836

Restructuring expenses
1,032

 
650

 
1,682

Adjusted EBITDA
$
34,433

 
$
38,081

 
$
72,514

(1) 
Interest expense includes impact of amortization of deferred financing costs, original issue discounts and interest income.