Segment Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

15. Segment Reporting

The Company has three operating and reportable segments, Commercial Services, Government Solutions and Parking Solutions. Commercial Services offers toll and violation management solutions and title and registration services to commercial fleet vehicle owners, rental car companies and violation-issuing authorities. Government Solutions implements and administers traffic safety programs and products for municipalities and government agencies of all sizes. Parking Solutions provides an integrated suite of parking software and hardware solutions to its customers. The Company’s Chief Operating Decision Maker function (“CODM”) is comprised of the Company’s CEO and certain defined representatives of the Company’s executive management team. The Company’s CODM monitors operating performance, allocates resources and deploys capital based on these three segments.

Segment performance is based on revenues and income from operations before depreciation, amortization, (gain) loss on disposal of assets, net, and stock-based compensation. The measure also excludes interest expense, net, income taxes and certain other transactions and is inclusive of other income, net. The tables below refer to this measure as segment profit (loss). The aforementioned items are not indicative of operating performance, and, as a result are not included in the measures that are reviewed by the CODM for the segments. Other income, net consists primarily of credit card rebates earned on the prepayment of tolling transactions and is therefore included in segment profit (loss).

The following tables set forth financial information by segment for the respective periods:

	For the Three Months Ended June 30, 2022
	Commercial			Government			Parking		Corporate
($ in thousands)	Services			Solutions			Solutions		and Other			Total
Service revenue	$	84,888		$	74,672		$	14,942	$	—		$	174,502
Product sales		—			8,856			4,129		—			12,985
Total revenue		84,888			83,528			19,071		—			187,487
Cost of service revenue		496			563			2,654		—			3,713
Cost of product sales		—			4,893			3,433		—			8,326
Operating expenses		18,105			34,401			2,406		—			54,912
Selling, general and administrative expenses		13,681			14,433			7,756		—			35,870
Other (income) expense, net		(3,840	)		(218	)		19		—			(4,039	)
Segment profit	$	56,446		$	29,456		$	2,803	$	—		$	88,705
Segment profit	$	56,446		$	29,456		$	2,803	$	—		$	88,705
Depreciation and amortization		—			—			—		34,540			34,540
Loss on disposal of assets, net		—			385			14		—			399
Change in fair value of private placement warrants		—			—			—		(6,600	)		(6,600	)
Tax receivable agreement liability adjustment		—			—			—		(965	)		(965	)
Stock-based compensation		—			—			—		4,566			4,566
Interest expense, net		—			—			—		14,485			14,485
Income (loss) before income taxes	$	56,446		$	29,071		$	2,789	$	(46,026	)	$	42,280

	For the Three Months Ended June 30, 2021
	Commercial			Government			Corporate
($ in thousands)	Services			Solutions			and Other			Total
Service revenue	$	66,480		$	49,946		$	—		$	116,426
Product sales		—			12,231			—			12,231
Total revenue		66,480			62,177			—			128,657
Cost of service revenue		905			427			—			1,332
Cost of product sales		—			6,144			—			6,144
Operating expenses		15,990			20,196			—			36,186
Selling, general and administrative expenses		9,479			10,119			3,306			22,904
Other income, net		(2,594	)		(204	)		—			(2,798	)
Segment profit (loss)	$	42,700		$	25,495		$	(3,306	)	$	64,889
Segment profit (loss)	$	42,700		$	25,495		$	(3,306	)	$	64,889
Depreciation and amortization		—			—			27,013			27,013
Gain on disposal of assets, net		—			(1	)		—			(1	)
Change in fair value of private placement warrants		—			—			8,067			8,067
Tax receivable agreement liability adjustment		—			—			1,661			1,661
Stock-based compensation		—			—			3,573			3,573
Interest expense, net		—			—			11,680			11,680
Income (loss) before income taxes	$	42,700		$	25,496		$	(55,300	)	$	12,896

	For the Six Months Ended June 30, 2022
	Commercial			Government			Parking		Corporate
($ in thousands)	Services			Solutions			Solutions		and Other			Total
Service revenue	$	158,353		$	147,896		$	29,387	$	—		$	335,636
Product sales		—			14,460			7,776		—			22,236
Total revenue		158,353			162,356			37,163		—			357,872
Cost of service revenue		1,098			1,036			5,358		—			7,492
Cost of product sales		—			8,620			5,701		—			14,321
Operating expenses		34,052			66,792			4,917		—			105,761
Selling, general and administrative expenses		26,957			30,888			15,428		—			73,273
Other (income) expense, net		(6,795	)		(146	)		36		—			(6,905	)
Segment profit	$	103,041		$	55,166		$	5,723	$	—		$	163,930
Segment profit	$	103,041		$	55,166		$	5,723	$	—		$	163,930
Depreciation and amortization		—			—			—		70,215			70,215
Loss on disposal of assets, net		—			626			5		—			631
Change in fair value of private placement warrants		—			—			—		(2,866	)		(2,866	)
Tax receivable agreement liability adjustment		—			—			—		(965	)		(965	)
Stock-based compensation		—			—			—		9,012			9,012
Interest expense, net		—			—			—		28,764			28,764
Income (loss) before income taxes	$	103,041		$	54,540		$	5,718	$	(104,160	)	$	59,139

	For the Six Months Ended June 30, 2021
	Commercial			Government			Corporate
($ in thousands)	Services			Solutions			and Other			Total
Service revenue	$	112,169		$	94,020		$	—		$	206,189
Product sales		—			12,326			—			12,326
Total revenue		112,169			106,346			—			218,515
Cost of service revenue		1,436			776			—			2,212
Cost of product sales		—			6,171			—			6,171
Operating expenses		30,196			36,288			—			66,484
Selling, general and administrative expenses		20,271			20,930			7,432			48,633
Other income, net		(4,664	)		(1,147	)		—			(5,811	)
Segment profit (loss)	$	64,930		$	43,328		$	(7,432	)	$	100,826
Segment profit (loss)	$	64,930		$	43,328		$	(7,432	)	$	100,826
Depreciation and amortization		—			—			55,227			55,227
Loss on disposal of assets, net		—			50			—			50
Change in fair value of private placement warrants		—			—			10,134			10,134
Tax receivable agreement liability adjustment		—			—			1,661			1,661
Stock-based compensation		—			—			6,481			6,481
Interest expense, net		—			—			20,844			20,844
Loss on extinguishment of debt		—			—			5,334			5,334
Income (loss) before income taxes	$	64,930		$	43,278		$	(107,113	)	$	1,095

The Company primarily operates within the United States, Australia, Canada, United Kingdom and in various other countries in Europe and Asia. Revenues earned from goods transferred to customers at a point in time were approximately $13.0 million and $12.2 million for the three months ended June 30, 2022 and 2021, respectively and were $22.2 million and $12.3 million for the six months ended June 30, 2022 and 2021, respectively.

The following table details the revenues from international customers for the respective periods:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2022		2021		2022		2021
Australia	$	8,436	$	1,141	$	16,218	$	1,141
Canada		7,984		365		15,660		400
United Kingdom		4,992		3,318		11,198		5,648
All other		472		483		1,154		878
Total international revenues	$	21,884	$	5,307	$	44,230	$	8,067