Segment Information

6 Months Ended

Jun. 30, 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 the 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 June 30, 2022
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	4,334		$	33,283		$	—		$	37,617
Services and other	—			—			2,983			2,983
Subscription, transaction, and services revenues	4,334			33,283			2,983			40,600
Reimbursable costs	8,676			—			—			8,676
Total revenues	13,010			33,283			2,983			49,276
Cost of revenues:
Cost of subscription, transaction, and services revenue	1,583			4,846			4,721			11,150
Cost of reimbursable costs	8,676			—			—			8,676
Total cost of revenues	10,259			4,846			4,721			19,826
Gross profit:
Total segment gross profit (loss)	$	2,751		$	28,437		$	(1,738)		$	29,450
Total segment gross margin	21		%	85		%	(58)		%	60		%
Subscription, transaction, and services gross margin	63		%	85		%	(58)		%	73		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										42,682
Depreciation and amortization										2,166
Impairment and restructuring										30
Other expense										78
Loss before income taxes										$	(15,506)

	Three Months Ended June 30, 2021
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	4,490		$	24,582		$	—		$	29,072
Services and other	—			—			2,517			2,517
Subscription, transaction, and services revenues	4,490			24,582			2,517			31,589
Reimbursable costs	8,643			—			—			8,643
Total revenues	13,133			24,582			2,517			40,232
Cost of revenues:
Cost of subscription, transaction, and services revenue	1,900			3,679			3,781			9,360
Cost of reimbursable costs	8,643			—			—			8,643
Total cost of revenues	10,543			3,679			3,781			18,003
Gross profit:
Total segment gross profit (loss)	$	2,590		$	20,903		$	(1,264)		$	22,229
Total segment gross margin	20		%	85		%	(50)		%	55		%
Subscription, transaction, and services gross margin	58		%	85		%	(50)		%	70		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										31,728
Depreciation and amortization										1,359
Other income										(133)
Loss before income taxes										$	(10,725)

	Six Months Ended June 30, 2022
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	8,575		$	63,144		$	—		$	71,719
Services and other	—			—			5,930			5,930
Subscription, transaction, and services revenues	8,575			63,144			5,930			77,649
Reimbursable costs	17,258			—			—			17,258
Total revenues	25,833			63,144			5,930			94,907
Cost of revenues:
Cost of subscription, transaction, and services revenue	3,174			9,425			8,875			21,474
Cost of reimbursable costs	17,258			—			—			17,258
Total cost of revenues	20,432			9,425			8,875			38,732
Gross profit:
Total segment gross profit (loss)	$	5,401		$	53,719		$	(2,945)		$	56,175
Total segment gross margin	21		%	85		%	(50)		%	59		%
Subscription, transaction, and services gross margin	63		%	85		%	(50)		%	72		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										83,231
Depreciation and amortization										4,027
Impairment and restructuring										13,884
Other expense										(10)
Loss before income taxes										$	(44,957)

	Six Months Ended June 30, 2021
	Print			Software and Payments			All other			Consolidated
Revenues:
Subscription and transaction	$	8,988		$	50,267		$	—		$	59,255
Services and other	—			—			5,453			5,453
Subscription, transaction, and services revenues	8,988			50,267			5,453			64,708
Reimbursable costs	17,460			—			—			17,460
Total revenues	26,448			50,267			5,453			82,168
Cost of revenues:
Cost of subscription, transaction, and services revenue	3,826			7,391			7,396			18,613
Cost of reimbursable costs	17,460			—			—			17,460
Total cost of revenues	21,286			7,391			7,396			36,073
Gross profit:
Total segment gross profit (loss)	$	5,162		$	42,876		$	(1,943)		$	46,095
Total segment gross margin	20		%	85		%	(36)		%	56		%
Subscription, transaction, and services gross margin	57		%	85		%	(36)		%	71		%
Unallocated amounts:
Sales, marketing, research, development, and administrative expenses										64,107
Depreciation and amortization										2,719
Other income										12,696
Loss before income taxes										$	(33,427)