Segment Reporting

3 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

16. Segment Reporting

Management views the Company’s operating results based on three reportable segments: Software and Analytics, Network Solutions and 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 financial and administrative management, value-based care, communication and payment, pharmacy benefits administration and healthcare consulting.

Postage and Eliminations

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

Revenue and adjusted EBITDA for each of the reportable segments for the three months ended June 30, 2021 and 2020 are shown below. 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		Three Months Ended
	June 30, 2021		June 30, 2020
Segment Revenue
Software and Analytics	$	420,317	$	391,589
Network Solutions		209,461		142,826
Technology-Enabled Services		225,521		187,706
Postage and Eliminations (1)		17,018		27,063
Purchase Accounting Adjustment (2)		(4,461)		(55,000)
Net Revenue	$	867,856	$	694,184
Segment Adjusted EBITDA
Software and Analytics	$	160,365	$	143,932
Network Solutions		109,488		70,503
Technology-Enabled Services		12,875		(17,579)
Adjusted EBITDA	$	282,728	$	196,856
Reconciliation of income (loss) before tax provision (benefit) to Adjusted EBITDA
Income (loss) before income tax provision (benefit)	$	(12,055)	$	(72,155)
Amortization of capitalized software developed for sale		717		78
Depreciation and amortization		168,211		138,541
Interest expense		59,386		62,667
Equity compensation		26,166		9,583
Acquisition accounting adjustments		(559)		48,540
Acquisition and divestiture-related costs		6,394		5,120
Integration and related costs		11,368		10,358
Strategic initiatives, duplicative and transition costs		9,928		5,080
Severance costs		4,720		4,704
Accretion and changes in estimate, net		4,732		5,895
Impairment of long-lived assets and other		1,612		6,313
Gain on sale of businesses		—		(28,095)
Contingent consideration		—		(2,450)
Other non-routine, net		2,108		2,677
Adjusted EBITDA	$	282,728	$	196,856

⁽¹⁾Revenue for the Postage and Eliminations segment includes postage revenue of $51,208 and $45,772 for the three months ended June 30, 2021 and 2020, respectively.

⁽²⁾Amount reflects the impact to deferred revenue resulting from the Merger which reduced revenue recognized during the period.