Segment Information

3 Months Ended

Mar. 31, 2022

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 March 31, 2022	Software		CES		All other			Total
Revenue	$	149,958	$	8,012	$	1,811		$	159,781
Adjusted EBITDA	$	46,184	$	798	$	(392	)	$	46,590
Three months ended March 31, 2021	Software		CES		All other			Total
Revenue	$	137,639	$	10,677	$	1,847		$	150,163
Adjusted EBITDA	$	36,238	$	1,010	$	(288	)	$	36,960

	Three Months Ended March 31,
	2022			2021
Reconciliation of Adjusted EBITDA to U.S. GAAP     income before income taxes:
Adjusted EBITDA	$	46,590		$	36,960
Stock-based compensation expense		(18,614	)		(9,648	)
Interest expense		(585	)		(2,973	)
Depreciation and amortization		(7,686	)		(6,686	)
Restructuring expense		—			(3,346	)
Special adjustments, interest income and other (1)		(1,647	)		94
Income before income taxes	$	18,058		$	14,401

(1) The three months ended March 31, 2022, includes $1.5 million currency losses on acquisition-related intercompany loans.