Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

14. Segment information

The Company defines its operating segments as components of its business where separate financial information is available and used by the chief operating decision maker (“CODM”) in deciding how to allocate resources to its segments and in assessing performance. The Company’s CODM is its Chief Executive Officer.

The Company has identified two reportable segments for financial reporting purposes: Software and Client Engineering Services. The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income (loss) adjusted for income tax expense (benefit), interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as determined by management. Adjusted EBITDA includes an allocation of corporate headquarters costs.

The following tables are in thousands:

Three Months Ended September 30, 2021	Software		CES		All other			Total
Revenue	$	109,939	$	10,060	$	1,308		$	121,307
Adjusted EBITDA	$	14,103	$	1,408	$	(679	)	$	14,832
Three Months Ended September 30, 2020	Software		CES		All other			Total
Revenue	$	93,980	$	10,868	$	1,608		$	106,456
Adjusted EBITDA	$	7,071	$	1,607	$	(503	)	$	8,175

Nine Months Ended September 30, 2021	Software		CES		All other			Total
Revenue	$	354,617	$	31,005	$	5,760		$	391,382
Adjusted EBITDA	$	58,957	$	3,630	$	(1,299	)	$	61,288
Nine Months Ended September 30, 2020	Software		CES		All other			Total
Revenue	$	296,634	$	34,386	$	5,460		$	336,480
Adjusted EBITDA	$	32,637	$	4,086	$	(1,127	)	$	35,596

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Reconciliation of Adjusted EBITDA to U.S. GAAP     (loss) income before income taxes:
Adjusted EBITDA	$	14,832		$	8,175		$	61,288		$	35,596
Stock-based compensation expense		(10,933	)		(6,234	)		(31,229	)		(13,939	)
Interest expense		(3,037	)		(2,934	)		(8,998	)		(8,590	)
Depreciation and amortization		(6,175	)		(5,623	)		(19,355	)		(16,916	)
Restructuring expense		124			—			(4,954	)		—
Special adjustments, interest income and other (1)		102			1,041			275			1,501
Loss before income taxes	$	(5,087	)	$	(5,575	)	$	(2,973	)	$	(2,348	)

(1) Included in 2020 are a) $1.0 million of proceeds from settlements related to an historical acquisition for both the three and nine months ended September 30, 2020, and b) $0.6 million of severance expense for the nine-months ended September 30, 2020.