SEGMENTS

We have three operating segments: our Cardlytics Direct solutions in the United States and United Kingdom and Other Platform Solutions, as determined by the information that both our Chief Executive Officer and President and Chief Operating Officer, who we consider our chief operating decision makers, use to make strategic goals and operating decisions. Our Cardlytics Direct operating segments in the United States and United Kingdom represent our proprietary native bank advertising channels and are aggregated into one reportable segment given their similar economic characteristics, nature of service, types of customers and method of distribution. Our Other Platform Solutions segment represents solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence across all of their marketing investments.

Revenues can be directly attributable to each segment. With the exception of non-cash equity expense and the amortization and impairment of deferred FI implementation costs, FI Share is also directly attributable to each segment. Our chief operating decision makers allocate resources to, and evaluate the performance of, our operating segments based on revenue and adjusted contribution. The accounting policies of each of our reportable segments are the same as those described in the summary of significant accounting policies.

Subsequent to March 31, 2018, we began a strategic shift to focus the majority of our efforts and resources to support the growth of Cardlytics Direct. At this time, we have not yet determined what impact this strategic change will have on our reportable segment structure.

The following table provides information regarding our reportable segments (in thousands):



	Three Months Ended March 31,
	2017		2018
Cardlytics Direct:
Adjusted contribution	$	9,440	$	14,222
Plus: FI Share and other third-party costs ⁽¹⁾	15,014		17,899
Revenue	$	24,454	$	32,121
Other Platform Solutions:
Adjusted contribution	$	1,155	$	2
Plus: FI Share and other third-party costs ⁽¹⁾	1,272		590
Revenue	$	2,427	$	592
Total:
Adjusted contribution	$	10,595	$	14,224
Plus: FI Share and other third-party costs ⁽¹⁾	16,286		18,489
Revenue	$	26,881	$	32,713


(1)	FI Share and other third party costs presented above excludes non-cash equity expense and amortization and impairment of deferred FI implementation costs, which are detailed below in our reconciliation of loss before income taxes to adjusted contribution.

Adjusted Contribution

Adjusted contribution represents our revenue less FI Share and other third-party costs excluding non-cash equity expense included in FI Share and amortization and impairment of deferred FI implementation costs. During the first quarter of 2018, we refined our definition of adjusted contribution used by our chief operating decision maker to exclude the impact of non-cash charges related to the issuance of equity to our FI partners and the impact of amortization and impairment of deferred FI implementation costs. We believe these changes are warranted and appropriate since these investments are expected to yield meaningful long-term relationships with our FI partners and provide incentive for our FI partners to invest in the user interfaces that complement our platform. We have recast all historical disclosures of adjusted contribution for the periods presented.

The following table presents a reconciliation of loss before income taxes presented in accordance with U.S. GAAP to adjusted contribution (in thousands):



	Three Months Ended March 31,
	2017			2018
Adjusted contribution	$	10,595		$	14,224
Minus:
Non-cash equity expense included in FI Share	—			2,519
Amortization of deferred FI implementation costs	391			412
Delivery costs	1,553			1,943
Sales and marketing expense	7,232			8,216
Research and development expense	3,013			3,459
General and administration expense	4,689			6,582
Depreciation and amortization expense	765			910
Total other expense	5,415			10,238
Loss before income taxes	$	(12,463	)	$	(20,055	)

The following table provides geographical information (in thousands):



	Three Months Ended March 31,
	2017		2018
Revenue:
United States	$	24,685	$	28,987
United Kingdom	2,196		3,726
Total	$	26,881	$	32,713



	December 31, 2017		March 31, 2018
Property and equipment:
United States	$	6,813	$	6,904
United Kingdom	506		459
Total	$	7,319	$	7,363

Capital expenditures within the United Kingdom was $0.3 million during the three months ended March 31, 2017 and less than $0.1 million during the three months ended March 31, 2018.