Segment and Geographical Information

3 Months Ended

Mar. 31, 2019

The Company operates in the BPM industry and is a provider of operations management and analytics services. The Company has eight operating segments, which are strategic business units that align its products and services with how it manages its business, approaches its key markets and interacts with its clients. Six of those operating segments provide BPM or “operations management” services, five of which are industry-focused operating segments (Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services, and Utilities) and one of which is a “capability” operating segment (Finance and Accounting) that provides services to clients in our industry-focused segments as well as clients across other industries. In each of these six operating segments, the Company provides operations management services, which typically involve transfer to the Company of the business operations of a client, after which it administers and manages those operations for its client on an ongoing basis. The remaining two operating segments are Consulting, which provides industry-specific transformational services related to operations management services, and Analytics, which provides services that focus on driving improved business outcomes for clients by generating data-driven insights across all parts of their business.

The Company presents information for the following reportable segments:


•	Insurance


•	Healthcare


•	Travel, Transportation and Logistics (“TT&L”)


•	Finance and Accounting (“F&A”)


•	Analytics, and


•	All Other (consisting of the Company's remaining operating segments, which are the Banking and Financial Services, Utilities and Consulting operating segments).

The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments.

The Company does not allocate and therefore the CODM does not evaluate other operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented.

Revenues and cost of revenues for the three months ended March 31, 2019 and 2018, respectively, for each of the reportable segments, are as follows:



	Three months ended March 31, 2019
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	69,038	$	20,569	$	17,425	$	25,724	$	19,856	$	86,961	$	239,573
Cost of revenues⁽¹⁾	46,692		16,995		9,800		14,274		12,577		56,902		157,240
Gross profit⁽¹⁾	$	22,346	$	3,574	$	7,625	$	11,450	$	7,279	$	30,059	$	82,333
Operating expenses													65,472
Foreign exchange gain, interest expense and other income, net													2,101
Income tax expense													4,200
Loss from equity-method investment													67
Net income													$	14,695



	Three months ended March 31, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	63,903	$	22,797	$	17,499	$	23,972	$	21,700	$	57,102	$	206,973
Cost of revenues⁽¹⁾	42,427		17,242		10,443		14,729		15,185		38,075		138,101
Gross profit⁽¹⁾	$	21,476	$	5,555	$	7,056	$	9,243	$	6,515	$	19,027	$	68,872
Operating expenses													53,722
Foreign exchange gain, interest expense and other income, net													3,611
Income tax benefit													(4,453		)
Loss from equity-method investment													56
Net income													$	23,158

⁽¹⁾ Exclusive of depreciation and amortization.

Revenues, net by service type, were as follows:



	Three months ended March 31,
	2019		2018
BPM and related services⁽¹⁾	$	152,612	$	149,871
Analytics services	86,961		57,102
Revenues, net	$	239,573	$	206,973

⁽¹⁾ BPM and related services include revenues of the Company's five industry-focused operating segments, one capability operating segment and the consulting operating segment, which provides services related to operations management services. Refer reportable segment disclosure above.

The Company attributes the revenues to regions based upon the location of its customers.



	Three months ended March 31,
	2019		2018
Revenues, net
United States	$	196,104	$	171,198
Non-United States
United Kingdom	29,101		28,016
Rest of World	14,368		7,759
Total Non-United States	43,469		35,775
Revenues, net	$	239,573	$	206,973

Property and equipment, net by geographic area, were as follows:



	As of
	March 31, 2019		December 31, 2018
Property and equipment, net
India	$	34,527	$	36,152
United States	27,210		28,254
Philippines	7,703		5,985
Rest of World	4,007		3,119
Property and equipment, net	$	73,447	$	73,510