For performance assessment and resource allocation purposes, the Company’s chief operating decision maker (“CODM”) reviews discrete financial results of two operating segments as of December 31, 2022: (1) Consumer Payments and (2) Business Payments. These operating segments represent reportable segments based on ASC 280, Segment Reporting. Prior year amounts have been reclassified to conform to the current presentation.

The Consumer Payments segment provides payment processing solutions (including debit and credit card processing, ACH processing and other electronic payment acceptance solutions, as well as our loan disbursement product) that enable the Company’s clients to collect payments and disburse funds to consumers and includes the Company’s clearing and settlement solutions (“RCS”). RCS is the Company’s proprietary clearing and settlement platform through which the Company markets customizable payment processing programs to other ISOs and payment facilitators. The strategic vertical markets served by the Consumer Payments segment primarily include personal loans, automotive loans, receivables management, credit unions, mortgage servicing, consumer healthcare and diversified retail. The Consumer Payments segment represented approximately 86% and 87% of the Company’s total revenue after any intersegment eliminations for the three and six months ended June 30, 2023, respectively.

The Business Payments segment provides payment processing solutions (including accounts payable automation, debit and credit card processing, virtual credit card processing, ACH processing and other electronic payment acceptance solutions) that enable the Company’s clients to collect or send payments to other businesses. The strategic vertical markets served within the Business Payments segment primarily include retail automotive, education, field services, governments and municipalities, healthcare, media, HOA management and hospitality. The Business Payments segment represented approximately 14% and 13% of the Company’s total revenue after any intersegment eliminations for the three and six months ended June 30, 2023, respectively.

The following table presents revenue and gross profit for each reportable segment.


	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousand)	2023			2022			2023			2022
Revenue
Consumer Payments	$	65,924		$	59,833		$	135,865		$	120,914
Business Payments		9,829			9,934			18,503			18,826
Elimination of intersegment revenues (1)		(3,970	)		(2,332	)		(8,048	)		(4,741	)
Total revenue	$	71,783		$	67,435		$	146,320		$	134,999
Gross profit (2)
Consumer Payments	$	51,704		$	46,082		$	106,329		$	93,572
Business Payments		7,209			6,954			13,234			12,872
Elimination of intersegment revenues		(3,970	)		(2,332	)		(8,048	)		(4,741	)
Total gross profit	$	54,943		$	50,704		$	111,515		$	101,703

Total other operating expenses (3)	$	64,809		$	67,271		$	139,345		$	125,178
Total other income (expense)		3,485			18,259			(2,126	)		41,897
Income (loss) before income tax benefit (expense)		(6,381	)		1,692			(29,956	)		18,422
Income tax benefit (expense)		1,051			(3,045	)		(3,306	)		(6,888	)
Net income (loss)	$	(5,330	)	$	(1,353	)	$	(33,262	)	$	11,534

(1)

Represents intercompany eliminations between segments for consolidation purpose.

(2)

Represents revenue less costs of services.

(3)

Represents total operating expenses less costs of services.

Revenue and costs of services are attributed directly to each segment. There is no significant concentration of revenue or assets in foreign countries as of June 30, 2023. The CODM reporting package does not include discrete asset details of the operating segments as this information is not considered by the CODM for resource allocation or other segment analysis purposes.