Segment Information

3 Months Ended

Mar. 31, 2022

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, 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, impairment and restructuring expense, stock-based compensation expense, other 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 March 31, 2022
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	4,241		$	29,861		$	—		$	34,102
Services and other	—			—			2,947			2,947
Subscription, transaction, and services revenues	4,241			29,861			2,947			37,049
Reimbursable costs	8,582			—			—			8,582
Total revenues	12,823			29,861			2,947			45,631
Cost of revenues:
Cost of subscription, transaction, and services revenue	1,549			4,602			4,174			10,325
Cost of reimbursable costs	8,582			—			—			8,582
Total cost of revenues	10,131			4,602			4,174			18,907
Gross profit:
Total segment gross profit (loss)	$	2,692		$	25,259		$	(1,227)		$	26,724
Total segment gross margin	21		%	85		%	(42)		%	59		%
Subscription, transaction, and services gross margin	63		%	85		%	(42)		%	72		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										40,549
Depreciation and amortization										1,861
Impairment and restructuring										13,854
Other income										(88)
Loss before income taxes										$	(29,452)

	Three Months Ended March 31, 2021
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	4,498		$	25,685		$	—		$	30,183
Services and other	—			—			2,936			2,936
Subscription, transaction, and services revenues	4,498			25,685			2,936			33,119
Reimbursable costs	8,817			—			—			8,817
Total revenues	13,315			25,685			2,936			41,936
Cost of revenues:
Cost of subscription, transaction, and services revenue	1,926			3,711			3,616			9,253
Cost of reimbursable costs	8,817			—			—			8,817
Total cost of revenues	10,743			3,711			3,616			18,070
Gross profit:
Total segment gross profit (loss)	$	2,572		$	21,974		$	(680)		$	23,866
Total segment gross margin	19		%	86		%	(23)		%	57		%
Subscription, transaction, and services gross margin	57		%	86		%	(23)		%	72		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										32,379
Depreciation and amortization										1,360
Other expense										12,829
Loss before income taxes										$	(22,702)