Operating Segment and Enterprise Wide Reporting

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Operating Segment and Enterprise Wide Reporting

Note 16 - Operating Segment and Enterprise Wide Reporting

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. Refer to Note 3 - Business Combination & Acquisitions for information on the location of long-lived assets.

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

	Year Ended December 31, 2021
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	17,444		$	103,877		$	—		$	121,321
Services and other	—			—			10,253			10,253
Subscription, transaction, and services	17,444			103,877			10,253			131,574
Reimbursable costs	34,831			—			—			34,831
Total revenues	52,275			103,877			10,253			166,405
Cost of revenues:
Cost of subscription, transaction, and services revenue	6,880			15,429			14,734			37,043
Cost of reimbursable costs	34,831			—			—			34,831
Total cost of revenues	41,711			15,429			14,734			71,874
Gross profit:
Total segment gross profit (loss)	$	10,564		$	88,448		$	(4,481)		$	94,531
Total segment gross margin	20		%	85		%	(44)		%	57		%
Subscription, transaction, and services gross margin	61		%	85		%	(44)		%	72		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										138,033
Depreciation and amortization										5,516
Interest, loss on extinguishment of debt, changes in fair value of financial instruments, and other expenses										12,295
Loss before income taxes										$	(61,313)

	Year Ended December 31, 2020
	Print			Software and Payments			All other			Consolidated
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	45,608			12,571			11,468			69,647
Gross profit:
Total segment gross profit (loss)	$	9,953		$	68,593		$	(2,508)		$	76,038
Total segment gross margin	18		%	85		%	(28)		%	52		%
Subscription, transaction, and services gross margin	54		%	85		%	(28)		%	70		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										82,076
Depreciation and amortization										5,624
Interest, loss on extinguishment of debt, changes in fair value of financial instruments, and other expenses										5,161
Loss before income taxes										$	(16,823)

	Year Ended December 31, 2019
	Print			Software and Payments			All other			Consolidated
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	49,650			11,900			10,473			72,023
Gross profit:
Total segment gross profit (loss)	$	10,970		$	56,964		$	(3,489)		$	64,445
Total segment gross margin	18		%	83		%	(50)		%	47		%
Subscription, transaction, and services gross margin	53		%	83		%	(50)		%	67		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										79,680
Depreciation and amortization										5,881
Interest, loss on extinguishment of debt, changes in fair value of financial instruments, and other expenses										1,527
Loss before income taxes										$	(22,643)