Segment and Geographical Information

6 Months Ended

Jun. 30, 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 June 30, 2019 and 2018, respectively, for each of the reportable segments, are as follows:



	Three months ended June 30, 2019
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	72,236	$	20,016	$	17,541	$	26,422	$	19,423	$	87,871	$	243,509
Cost of revenues⁽¹⁾	49,906		16,865		9,989		15,994		12,261		57,431		162,446
Gross profit⁽¹⁾	$	22,330	$	3,151	$	7,552	$	10,428	$	7,162	$	30,440	$	81,063
Operating expenses													67,207
Foreign exchange gain, interest expense and other income, net													1,440
Income tax expense													2,670
Loss from equity-method investment													62
Net income													$	12,564



	Three months ended June 30, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	64,812	$	19,817	$	18,549	$	24,228	$	23,088	$	59,618	$	210,112
Cost of revenues⁽¹⁾	44,033		16,713		10,625		14,543		15,079		38,656		139,649
Gross profit⁽¹⁾	$	20,779	$	3,104	$	7,924	$	9,685	$	8,009	$	20,962	$	70,463
Operating expenses													53,373
Foreign exchange gain, interest expense and other income, net													2,940
Income tax expense													5,510
Loss from equity-method investment													58
Net income													$	14,462

⁽¹⁾ Exclusive of depreciation and amortization.

Revenues and cost of revenue for the six months ended June 30, 2019 and 2018, respectively, for each of the reportable

segments, are as follows:



	Six months ended June 30, 2019
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	141,274	$	40,584	$	34,966	$	52,146	$	39,280	$	174,832	$	483,082
Cost of revenues⁽¹⁾	96,598		33,860		19,789		30,268		24,838		114,333		319,686
Gross profit⁽¹⁾	$	44,676	$	6,724	$	15,177	$	21,878	$	14,442	$	60,499	$	163,396
Operating expenses													132,679
Foreign exchange gain, interest expense and other income, net													3,541
Income tax expense													6,870
Loss from equity-method investment													129
Net income													$	27,259

⁽¹⁾ Exclusive of depreciation and amortization.



	Six months ended June 30, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	128,715	$	42,614	$	36,048	$	48,200	$	44,788	$	116,720	$	417,085
Cost of revenues⁽¹⁾	86,460		33,955		21,068		29,272		30,264		76,731		277,750
Gross profit⁽¹⁾	$	42,255	$	8,659	$	14,980	$	18,928	$	14,524	$	39,989	$	139,335
Operating expenses													107,095
Foreign exchange gain, interest expense and other income, net													6,551
Income tax expense													1,057
Loss from equity-method investment													114
Net income													$	37,620

⁽¹⁾ Exclusive of depreciation and amortization.

Revenues, net by service type, were as follows:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
BPM and related services⁽¹⁾	$	155,638	$	150,494	$	308,250	$	300,365
Analytics services	87,871		59,618		174,832		116,720
Revenues, net	$	243,509	$	210,112	$	483,082	$	417,085

⁽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 to the reportable segment disclosure above.

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



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Revenues, net
United States	$	197,901	$	174,087	$	394,005	$	345,285
Non-United States
United Kingdom	30,155		27,480		59,256		55,496
Rest of World	15,453		8,545		29,821		16,304
Total Non-United States	45,608		36,025		89,077		71,800
Revenues, net	$	243,509	$	210,112	$	483,082	$	417,085

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



	As of
	June 30, 2019		December 31, 2018
Property and equipment, net
India	$	33,605	$	36,152
United States	31,378		28,254
Philippines	9,345		5,985
Rest of World	3,755		3,119
Property and equipment, net	$	78,083	$	73,510