Segment Reporting

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Our business is organized into three operating business segments and one non-operating business segment:

•Virtual Care Infrastructure—consisting of U.S. Telehealth and International Telehealth businesses(3);

•Services—consisting of Behavioral and Pharmacy businesses(1)(2);

•Integrated Care Management—consisting of SaaS business(1); and

•Corporate—consisting of holding company.

(1) As discussed in Note 1. Organization and Business, we deconsolidated UpHealth Holdings as of September 30, 2023; accordingly, the financial position of UpHealth Holdings as of December 31, 2022 and financial results of UpHealth Holdings in the three and nine months ended September 30, 2023 are included in our unaudited condensed consolidated financial statements and the financial position of UpHealth Holdings as of September 30, 2023 is not included in our unaudited condensed consolidated financial statements. The filing of a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code, as discussed in Note 1. Organization and Business, occurred on September 19, 2023. Management concluded that it would use the September 30, 2023 date for deconsolidation, as the last 12 days in the month were determined to not be material.

(2) As discussed in Note 3. Significant Transactions, we completed the sale of Innovations Group, which comprised our Pharmacy business, on May 11, 2023. In addition, we substantially completed the wind down of a company within our Behavioral business in our Services segment in the three months ended June 30, 2023.

(3) As discussed in Note 1. Organization and Business, we deconsolidated Glocal as of July 1, 2022; accordingly, the financial results of Glocal in the six months ended June 30, 2022 are included in our unaudited condensed consolidated financial statements, and the financial position of Glocal as of September 30, 2023 and December 31, 2022 and the financial results of Glocal in the three months ended September 30, 2022 and the three and nine months ended September 30, 2023 are not included in our unaudited condensed consolidated financial statements.

We evaluate performance based on several factors, of which revenues, gross profit, and total assets are the primary financial measures:

Revenues by segment consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2023		2022		2023		2022
Virtual Care Infrastructure	$	18,506	$	14,978	$	52,802	$	47,423
Services	10,908		19,893		47,225		56,653
Integrated Care Management	3,267		3,795		12,622		14,230
Total revenues	$	32,681	$	38,666	$	112,649	$	118,306

Gross profit by segment consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2023		2022		2023		2022
Virtual Care Infrastructure	$	10,789	$	7,186	$	29,444	$	21,090
Services	5,593		6,986		23,232		19,465
Integrated Care Management	1,241		2,854		7,599		11,385
Total gross profit	$	17,623	$	17,026	$	60,275	$	51,940

Total assets by segment consisted of the following:

In thousands	September 30, 2023		December 31, 2022
Virtual Care Infrastructure	$	134,877	$	140,776
Services	—		124,980
Integrated Care Management	—		44,776
Corporate	100,267		29,272
Total assets	$	235,144	$	339,804

All long-lived assets were located in the U.S. as of September 30, 2023 and December 31, 2022.