19. Segment Reporting

Management views the operating results based on three reportable segments: (a) Software and Analytics, (b) Network Solutions and (c) Technology-Enabled Services.

Software and Analytics

The Software and Analytics segment provides solutions for revenue cycle management, provider network management, payment accuracy, value-based payments, clinical decision support, consumer engagement, risk adjustment and quality performance, and imaging and clinical workflow.

Network Solutions

The Network Solutions segment provides solutions for financial, administrative, clinical and pharmacy transactions, electronic payments and aggregation and analytics of clinical and financial data.

Technology-Enabled Services

The Technology-Enabled Services segment provides solutions for revenue cycle and practice management, value-based care enablement, communications and payments, pharmacy benefits administration and consulting.

Postage and Eliminations

Inter-segment revenue and expenses primarily represent claims management and payment and communication solutions provided between segments. Postage and eliminations includes pass-through postage costs, as well as eliminations to remove inter-segment revenue and expenses and consolidating adjustments to classify certain rebates paid to channel partners as a reduction of revenue. These administrative costs are excluded from the adjusted EBITDA measure for each respective reportable segment.

Segment Results for the three months ended June 30, 2020

Listed below are the revenues and adjusted EBITDA for each of the reportable segments for the three months ended June 30, 2020. This information is reflected in the manner utilized by management to make operating decisions, assess performance and allocate resources. Such amounts include allocations of corporate shared services functions that are essential to the core operations of the reportable segments. Segment assets and related depreciation expenses are not presented to management for purposes of operational decision making, and therefore are not included in the accompanying tables.


	Three Months Ended
	June 30, 2020
Segment Revenue
Software and Analytics	$	391,589
Network Solutions		142,826
Technology-Enabled Services		187,706
Postage and Eliminations (1)		27,063
Purchase Accounting Adjustment (2)		(55,000)
Net Revenue	$	694,184
Segment Adjusted EBITDA
Software and Analytics	$	143,932
Network Solutions		70,503
Technology-Enabled Services		(17,579)
Adjusted EBITDA	$	196,856
Equity compensation		9,583
Acquisition accounting adjustments		48,540
Acquisition and divestiture-related costs		5,120
Integration and related costs		10,358
Strategic initiatives, duplicative and transition costs		5,080
Severance costs		4,704
Accretion and changes in estimate with related parties, net		5,895
Impairment of long-lived assets and other		6,313
Gain on sale of businesses		(28,095)
Contingent consideration		(2,450)
Other non-routine, net		2,677
EBITDA Adjustments		67,725
EBITDA		129,131
Interest expense		62,667
Depreciation and amortization		138,541
Amortization of capitalized software developed for sale		78
Income (loss) before income tax provision (benefit)	$	(72,155)

⁽¹⁾

Revenue for the Postage and Eliminations segment includes postage revenue of $45,772 for the three months ended June 30, 2020.

⁽²⁾

Amount reflects the impact to deferred revenue resulting from the Merger which reduced revenue recognized during the period.

Prior to the Merger, the Company had minimal operations outside of the investment in the Joint Venture and the Company’s standalone operating results were not utilized by management to make operating decisions, assess performance, or allocate resources. As such, the Company reported its results as a single reportable segment for the three months ended June 30, 2019.