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Segment Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company previously reported its financial results in three reportable segments: web presence, email marketing, and domain. In conjunction with the process of simplifying the organization, the Company modified its internal reporting structure to reflect certain changes in its structure and leadership, and also changed the name of the email marketing segment to the "digital marketing" segment. This resulted in consolidation of the former domain segment into the web presence segment. Beginning with the three months ended March 31, 2020, the Company reports its financial results in two segments - web presence (including the former domain segment) and digital marketing, as follows:
Web Presence. The web presence segment consists primarily 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.

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, primarily based on a percentage of revenue.
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. Refer to Note 2, Summary of Significant Accounting Policies, for further details. The following tables contain financial information for each reportable segment for the years ended December 31, 2017, 2018 and 2019:
 
Year Ended December 31, 2017
 
Web presence
Digital marketing
Total
 
(in thousands)
Revenue
$
775,617

$
401,250

$
1,176,867

Gross profit
317,996

254,941

572,937

 
 
 
 
Net loss
$
(89,169
)
$
(10,615
)
$
(99,784
)
Interest expense, net(1)
69,492

86,914

156,406

Income tax expense (benefit)
(22,433
)
5,152

(17,281
)
Depreciation
41,273

13,912

55,185

Amortization of other intangible assets
65,887

74,467

140,354

Stock-based compensation
53,067

6,934

60,001

Restructuring expenses
10,229

5,581

15,810

Transaction expenses and charges
—

773

773

Gain of unconsolidated entities(2)
(110
)
—

(110
)
Impairment of goodwill and other long-lived assets(3)
31,460

—

31,460

SEC investigations reserve
5,249

2,751

8,000

Shareholder litigations reserve
—

—

—

Adjusted EBITDA
$
164,945

$
185,869

$
350,814


 
Year Ended December 31, 2018
 
Web presence
Digital marketing
Total
 
(in thousands)
Revenue
$
735,239

$
410,052

$
1,145,291

Gross profit
336,531

288,023

624,554

 
 
 
 
Net (loss) income
$
(34,094
)
$
38,628

$
4,534

Interest expense, net(1)
80,074

68,317

148,391

Income tax (benefit) expense
(6,361
)
115

(6,246
)
Depreciation
36,710

11,497

48,207

Amortization of other intangible assets
50,048

53,100

103,148

Stock-based compensation
19,426

9,638

29,064

Restructuring expenses
2,779

589

3,368

Transaction expenses and charges
—

—

—

Loss of unconsolidated entities(2)
267

—

267

Impairment of goodwill and other long-lived assets(3)
—

—

—

SEC investigations reserve
—

—

—

Shareholder litigation reserve
5,825

1,500

7,325

Adjusted EBITDA
$
154,674

$
183,384

$
338,058

 
Year Ended December 31, 2019
 
Web presence
Digital marketing
Total
 
(in thousands)
Revenue
$
702,606

$
410,672

$
1,113,278

Gross profit
307,914

295,068

602,982

 
 
 
 
Net (loss) income
$
(79,759
)
$
67,412

$
(12,347
)
Interest expense, net(1)
70,628

72,826

143,454

Income tax expense
11,279

6,600

17,879

Depreciation
35,924

9,027

44,951

Amortization of other intangible assets
39,307

45,876

85,183

Stock-based compensation
23,385

12,307

35,692

Restructuring expenses
785

1,207

1,992

Transaction expenses and charges
—

—

—

Gain on sale of business
—

(40,700
)
(40,700
)
Gain of unconsolidated entities(2)
—

—

—

Impairment of goodwill and other long-lived assets(3)
37,540

—

37,540

SEC investigations reserve
—

—

—

Shareholder litigation reserve
—

—

—

Adjusted EBITDA
$
139,089

$
174,555

$
313,644

(1)
Interest expense includes impact of amortization of deferred financing costs, original issue discounts and interest income. For the years ended December 31, 2017 and 2018, it also includes $6.5 million and $1.2 million, respectively, of deferred financing costs and OID immediately expensed upon the 2017 and 2018 term loan refinancings.
(2)
The (gain) loss of unconsolidated entities is reported on a net basis for the years ended December 31, 2017 and 2018.
(3)
The impairment of goodwill and other long-lived assets for the year ended December 31, 2017 includes $13.8 million related to certain domain name intangible assets, $0.6 million to write off a debt investment in a privately held entity, $12.1 million related to impairment of goodwill associated with the web presence segment, and $4.9 million related to developed technology and customer relationships associated with the Directi acquisition. The impairment of goodwill and other long-lived assets for the year ended
December 31, 2019 includes $12.3 million of goodwill impairment relating to two non-strategic reporting units in the web presence segment and $25.2 million related to premium domain name intangible assets acquired in 2014, which was recorded in cost of revenue in the consolidated statements of comprehensive income (loss).
Geographic and Other Information
Revenue, classified by the major geographic areas in which the Company's customers are located, was as follows: 
 
Year Ended December 31,
 
2017
 
2018
 
2019
 
(in thousands)
United States
$
845,305

 
$
833,864

 
$
812,870

International
331,562

 
311,427

 
300,408

Total
$
1,176,867

 
$
1,145,291

 
$
1,113,278


The following table presents the amount of tangible long-lived assets by geographic area: 
 
Year Ended December 31,
 
2018
 
2019
 
(in thousands)
United States
$
87,301

 
$
80,967

International
4,974

 
4,958

Total
$
92,275

 
$
85,925


The Company’s revenue is generated primarily from products and services delivered on a subscription basis, which include web hosting, domains, website builders, search engine marketing, email marketing and other similar services. The Company also generates non-subscription revenue through domain monetization and marketing development funds. Non-subscription revenue decreased from $39.4 million, or 3% of total revenue, for the year ended December 31, 2017 to $35.1 million, or 3% of total revenue, for the year ended December 31, 2018, and decreased to $31.5 million, or 3% of total revenue for the year ended December 31, 2019. Substantially all of the Company's non-subscription revenue is included in its web presence segment.
No individual international country represented more than 10% of total revenue in any period presented. Furthermore, substantially all of the Company's tangible long-lived assets are located in the United States.