Segment Information (Q3)

9 Months Ended

12 Months Ended

Sep. 30, 2021

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

Note 16 - Segment Information

The Company's operations are grouped into two reportable segments: (1) Print, and (2) Software and Payments. The Company's Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer ("CEO"), who reviews discrete financial and other information presented for print services and software and payment services for purposes of allocating resources and evaluating the Company's financial performance.

• Print – The Print segment is primarily responsible for printing customer invoices and optimizing the amount of time and costs associated with billing customers via mail.

• Software and Payments – The Software and Payments segment primarily operates using software and cloud based services, optimizes electronic invoice presentment, electronic payments, credit decisioning, collections automation, cash application and deduction management, and e-commerce of B2B customers.

“All other” represents implementation, services, and other business activities which are not reviewed by CODM on regular basis.

The Company evaluates segment performance and allocates resources based on revenues, cost of revenues, and gross profit. The accounting policies used by the reportable segments are the same as those used by the Company. All of the revenues shown in the reportable segments is revenue from external customers; there is no revenue from transactions with other operating segments. Segment expenses include the direct expenses of each segment's operations and exclude sales and marketing expenses, research and development expenses, general and administrative expenses, depreciation and amortization expense, stock-based compensation expense, interest income (expense), and certain other identified costs that the Company does not allocate to its segments for purposes of evaluating operational performance.

Given the nature of the Company’s business, the amount of assets does not provide meaningful insight into the operating performance of the Company. As a result, the Company does not identify or allocate assets by reportable segment and total assets are not included in the Company’s segment financial information.

The following tables include a reconciliation of segment revenues, cost of revenues, and gross profits to loss before income taxes (in thousands):

	Three Months Ended September 30, 2021
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	4,367		$	26,009		$	—		$	30,376
Services and other		—			—			2,356			2,356
Subscription, transaction, and services		4,367			26,009			2,356			32,732
Reimbursable costs		8,625			—			—			8,625
Total revenues		12,992			26,009			2,356			41,357
Cost of Revenues:
Cost of subscription, transaction, and services revenue		1,706			3,833			3,829			9,368
Cost of reimbursable costs		8,625			—			—			8,625
Total cost of revenues		10,331			3,833			3,829			17,993
Gross profit:
Total segment gross profit (loss)	$	2,661		$	22,176		$	(1,473	)	$	23,364
Total segment gross margin		20	%		85	%		(63	)%		56	%
Subscription, transaction, and services gross margin		61	%		85	%		(63	)%		71	%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses											(33,601	)
Depreciation and amortization											(1,205	)
Interest, loss on extinguishment of debt, changes in fair value of financial instruments, and other income (expenses)											275
Loss before income taxes										$	(11,167	)

	Three Months Ended September 30, 2020
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	4,724		$	21,406		$	—		$	26,130
Services and other		—			—			2,678			2,678
Subscription, transaction, and services		4,724			21,406			2,678			28,808
Reimbursable costs		9,486			—			—			9,486
Total revenues		14,210			21,406			2,678			38,294
Cost of Revenues:
Cost of subscription, transaction, and services revenue		2,064			3,447			3,066			8,577
Cost of reimbursable costs		9,486			—			—			9,486
Total cost of revenues		11,550			3,447			3,066			18,063
Gross profit:
Total segment gross profit (loss)	$	2,660		$	17,959		$	(388	)	$	20,231
Total segment gross margin		19	%		84	%		(14	)%		53	%
Subscription, transaction, and services gross margin		56	%		84	%		(14	)%		70	%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses											(19,949	)
Depreciation and amortization											(1,402	)
Interest, loss on extinguishment of debt, changes in fair value of financial instruments, and other expenses											(1,562	)
Loss before income taxes										$	(2,682	)

	Nine Months Ended September 30, 2021
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	13,355		$	76,276		$	—		$	89,631
Services and other		—			—			7,809			7,809
Subscription, transaction, and services		13,355			76,276			7,809			97,440
Reimbursable costs		26,085			—			—			26,085
Total revenues		39,440			76,276			7,809			123,525
Cost of revenues:
Cost of subscription, transaction, and services revenue		5,532			11,224			11,225			27,981
Cost of reimbursable costs		26,085			—			—			26,085
Total cost of revenues		31,617			11,224			11,225			54,066
Gross profit:
Total segment gross profit (loss)	$	7,823		$	65,052		$	(3,416	)	$	69,459
Total segment gross margin		20	%		85	%		(44	)%		56	%
Subscription, transaction, and services gross margin		59	%		85	%		(44	)%		71	%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses											(97,708	)
Depreciation and amortization											(3,924	)
Interest, loss on extinguishment of debt, changes in fair value of financial instruments, and other expenses											(12,421	)
Loss before income taxes										$	(44,594	)

	Nine Months Ended September 30, 2020
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	13,958		$	59,107		$	—		$	73,065
Services and other		—			—			5,913			5,913
Subscription, transaction, and services		13,958			59,107			5,913			78,978
Reimbursable costs		28,052			—			—			28,052
Total revenues		42,010			59,107			5,913			107,030
Cost of Revenues:
Cost of subscription, transaction, and services revenue		6,573			9,440			8,087			24,100
Cost of reimbursable costs		28,052			—			—			28,052
Total cost of revenues		34,625			9,440			8,087			52,152
Gross profit:
Total segment gross profit (loss)	$	7,385		$	49,667		$	(2,174	)	$	54,878
Total segment gross margin		18	%		84	%		(37	)%		51	%
Subscription, transaction, and services gross margin		53	%		84	%		(37	)%		69	%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses											(59,781	)
Depreciation and amortization											(4,223	)
Interest, loss on extinguishment of debt, changes in fair value of financial instruments, and other expenses											(3,438	)
Loss before income taxes										$	(12,564	)

12. Segment Information

The Company has determined that it has two reportable segments - Print and Software/Payments. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer (“CEO”) who reviews discrete financial and other information presented for print services and software and payment services for purposes of allocating resources and evaluating the Company’s financial performance. The Company evaluates the operating performance of its segments based on financial measures such as revenue, cost of revenue, and gross profit.

Print – The Print segment is primarily responsible for printing customer invoices and optimizing the amount of time and costs associated with billing customers via mail.

Software and Payments – The Software and Payments segment primarily operates using software and cloud based services, optimizes the electronic invoice presentment, electronic payments, credit decisioning, collections automation, cash application and deduction management, and eCommerce of B2B customers.

Given the nature of the Company’s business, the amount of assets does not provide meaningful insight into the operating performance of the Company. As a result, the amount of the Company’s assets is not subject to segment allocation and total assets are not included within the disclosure of the Company’s segment financial information.

All of the revenues shown below in the reportable segments is revenue from external customers, there is no revenue from transactions with other operating segments.

The following tables include a reconciliation of revenue, cost of revenue, and segment gross profit to loss before income taxes. “All other” represents implementation, services and other business activities which are not reviewed by CODM on regular basis.

The Company’s segment information is as follows:

	December 31, 2020
	Print			Software and Payments			All other			Total
Revenues:
Subscription and transaction	$	18,445		$	81,164		$	—		$	99,609
Services and other		—			—			8,960			8,960
Subscription, transaction and services		18,445			81,164			8,960			108,569
Reimbursable costs		37,116			—			—			37,116
Total revenues		55,561			81,164			8,960			145,685
Cost of Revenues:
Cost of subscription, transaction and services revenue		8,492			12,571			11,468			32,531
Cost of reimbursable costs		37,116			—			—			37,116
Total cost of revenues, excluding depreciation and amortization		45,608			12,571			11,468			69,647
Segment gross profit - subscription, transaction and services		9,953			68,593			(2,508	)		76,038
Segment gross profit - reimbursable costs		—			—			—			—
Total segment gross profit, excluding depreciation and amortization	$	9,953		$	68,593		$	(2,508	)	$	76,038
Total segment gross margin, excluding depreciation and amortization		17.90	%		84.50	%		(28.00	)%		52.20	%
Segment gross margin - subscription, transaction and services		54.00	%		84.50	%		(28.00	)%		70.00	%
Unallocated amounts:
Sales and marketing										$	23,420
Research and development											36,468
General and administrative											22,188
Depreciation and amortization											5,624
Interest income											(18	)
Interest expense											4,661
Other (income)/expense, net											518
Loss before income taxes										$	(16,823	)

	December 31, 2019
	Print			Software and Payments			All other			Total
Revenues:
Subscription and transaction	$	20,612		$	68,864		$	—		$	89,476
Services and other		—			—			6,984			6,984
Subscription, transaction and services		20,612			68,864			6,984			96,460
Reimbursable costs		40,008			—			—			40,008
Total revenues		60,620			68,864			6,984			136,468
Cost of Revenues:
Cost of subscription, transaction and services revenue		9,642			11,900			10,473			32,015
Cost of reimbursable costs		40,008			—			—			40,008
Total cost of revenues, excluding depreciation and amortization		49,650			11,900			10,473			72,023
Segment gross profit - subscription, transaction and services		10,970			56,964			(3,489	)		64,445
Segment gross profit - reimbursable costs		—			—			—			—
Total segment gross profit, excluding depreciation and amortization	$	10,970		$	56,964		$	(3,489	)	$	64,445
Total segment gross margin, excluding depreciation and amortization		18.1	%		82.7	%		(50.0	)%		47.2	%
Segment gross margin - subscription, transaction and services		53.2	%		82.7	%		(50.0	)%		66.8	%
Unallocated amounts:
Sales and marketing										$	22,098
Research and development											34,285
General and administrative											23,297
Depreciation and amortization											5,881
Interest income											(1	)
Interest expense											1,507
Other (income)/expense, net											21
Loss before income taxes										$	(22,643	)

	December 31, 2018
	Print			Software and Payments			All other			Total
Revenues:
Subscription and transaction	$	21,120		$	53,605		$	—		$	74,725
Services and other		—			—			4,846			4,846
Subscription, transaction and services		21,120			53,605			4,846			79,571
Reimbursable costs		40,944			—			—			40,944
Total revenues		62,064			53,605			4,846			120,515
Cost of Revenues:
Cost of subscription, transaction and services revenue		10,517			8,271			7,779			26,567
Cost of reimbursable costs		40,944			—			—			40,944
Total cost of revenues, excluding depreciation and amortization		51,461			8,271			7,779			67,511
Segment gross profit - subscription, transaction and services		10,603			45,334			(2,933	)		53,004
Segment gross profit - reimbursable costs		—			—			—			—
Total segment gross profit, excluding depreciation and amortization	$	10,603		$	45,334		$	(2,933	)	$	53,004
Total segment gross margin, excluding depreciation and amortization		17.1	%		84.6	%		(60.5	)%		44.0	%
Segment gross margin - subscription, transaction and services		50.2	%		84.6	%		(60.5	)%		67.0	%
Unallocated amounts:
Sales and marketing										$	21,677
Research and development											23,606
General and administrative											18,743
Depreciation and amortization											6,040
Interest income											(136	)
Interest expense											814
Other (income)/expense, net											422
Loss before income taxes										$	(18,162	)