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SEGMENT INFORMATION (Tables)
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Schedule of Operating Results By Segment

Operating results by segment for the three months ended March 31, 2020 were as follows (in thousands):

 

 

 

 

 

 

 

Language

 

 

 

 

 

 

 

Literacy

Segment

 

 

E&E

Language

Segment

 

 

Consumer

Language

Segment

 

 

Shared

Services

 

 

Combined

Language

 

 

Total

Company

 

Revenue

 

$

17,486

 

 

$

13,552

 

 

$

16,141

 

 

$

 

 

$

29,693

 

 

$

47,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

2,936

 

 

 

2,271

 

 

 

2,437

 

 

 

(1

)

 

 

4,707

 

 

 

7,643

 

Sales and marketing

 

 

8,039

 

 

 

5,807

 

 

 

10,588

 

 

 

4

 

 

 

16,399

 

 

 

24,438

 

Research and development

 

 

3,142

 

 

 

 

 

 

 

 

 

3,182

 

 

 

3,182

 

 

 

6,324

 

General and administrative

 

 

552

 

 

 

(24

)

 

 

206

 

 

 

 

 

 

182

 

 

 

734

 

Segment contribution

 

$

2,817

 

 

$

5,498

 

 

$

2,910

 

 

$

(3,185

)

 

$

5,223

 

 

$

8,040

 

Segment contribution margin %

 

 

16.1

%

 

 

40.6

%

 

 

18.0

%

 

 

 

 

 

 

17.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated depreciation and amortization, stock compensation, and other expenses (net) included in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,458

 

Sales and marketing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

996

 

Research and development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

593

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,963

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate unallocated expenses, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated general and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,865

 

Unallocated non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34

)

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(5,801

)

 

Operating results by segment for the three months ended March 31, 2019 were as follows (in thousands):

 

 

 

 

 

 

 

Language

 

 

 

 

 

 

 

Literacy

Segment

 

 

E&E

Language

Segment

 

 

Consumer

Language

Segment

 

 

Shared

Services

 

 

Combined

Language

 

 

Total

Company

 

Revenue

 

$

14,806

 

 

$

14,443

 

 

$

15,362

 

 

$

 

 

$

29,805

 

 

$

44,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

2,458

 

 

 

1,469

 

 

 

1,984

 

 

 

(1

)

 

 

3,452

 

 

 

5,910

 

Sales and marketing

 

 

6,909

 

 

 

6,846

 

 

 

8,833

 

 

 

30

 

 

 

15,709

 

 

 

22,618

 

Research and development

 

 

1,995

 

 

 

 

 

 

 

 

 

3,651

 

 

 

3,651

 

 

 

5,646

 

General and administrative

 

 

431

 

 

 

21

 

 

 

(3

)

 

 

 

 

 

18

 

 

 

449

 

Segment contribution

 

$

3,013

 

 

$

6,107

 

 

$

4,548

 

 

$

(3,680

)

 

$

6,975

 

 

$

9,988

 

Segment contribution margin %

 

 

20.3

%

 

 

42.3

%

 

 

29.6

%

 

 

 

 

 

 

23.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated depreciation and amortization, stock compensation, and other expenses (net) included in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,516

 

Sales and marketing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

620

 

Research and development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

92

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,637

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate unallocated expenses, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated general and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,606

 

Unallocated non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(769

)

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(714

)

 

Summary of Revenue From Customers by Geographic Area

The information below summarizes revenue from customers by geographic area for the three months ended March 31, 2020 and 2019 (in thousands):

 

 

 

Three months ended March 31,

 

 

 

2020

 

 

2019

 

United States

 

$

42,529

 

 

$

39,830

 

International

 

 

4,650

 

 

 

4,781

 

Total revenue

 

$

47,179

 

 

$

44,611

 

 

Summary of Long-Lived Assets by Geographic Area

The information below summarizes long-lived assets by geographic area classified as held and used as of March 31, 2020 and December 31, 2019 (in thousands):

 

 

 

As of

 

 

 

March 31, 2020

 

 

December 31, 2019

 

United States

 

$

37,384

 

 

$

37,378

 

International

 

 

1,740

 

 

 

1,873

 

Total property and equipment, net

 

$

39,124

 

 

$

39,251