Operating Segments and Geographic Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Operating Segments and Geographic Information

17. Operating Segments and Geographic Information

Effective January 1, 2024, the Company revised its reportable segments to align with the Company’s business strategy, and the manner in which the Chief Executive Officer, the Company's CODM, assesses the performance and makes decisions regarding the allocation of resources for the Company. The Company’s revised reportable segments consist of Branded Services, Experiential Services, and Retailer Services. The reportable segments reported below are the segments of the Company for which separate financial information is available. Through the Company's Branded Services segment, the Company offers capabilities in brokerage, branded merchandising and omni-commerce marketing services to consumer goods manufacturers. Through the Company's Experiential Services segment, the Company expands the reach of consumer brands and retailer products to convert shoppers into buyers through sampling and product demonstration programs executed in-store and online. Through the Company's Retailer Services segment, the Company provides retailers with end-to-end advisory, retailer merchandising, and agency expertise to drive sales. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; therefore, no additional information is produced or included herein.

Segment operating income is the measure utilized by the CODM to assess performance and allocate resources. When evaluating the Company’s financial performance, the CODM regularly reviews revenues, compensation and benefits, reimbursable expenses and other segment items. Compensation costs are key metrics reviewed by the CODM when allocating resources and assessing performance as the Company depends significantly on human capital to deliver services to its clients. Reimbursable expenses are also

reviewed regularly by the CODM as revenue included in the CODM packages are net of these expenses. The accounting policies for the segments are consistent with those described Note 1—Organization and Significant Accounting Policies.

Revenues and significant expenses by segment are as follows:

	Year Ended December 31, 2024
(in thousands)	Branded Services			Experiential Services		Retailer Services		Total Company
Revenues	$	1,306,336		$	1,295,029	$	964,959	$	3,566,324
Less:
Compensation and benefits		719,089			701,906		619,387		2,040,382
Reimbursable expenses		171,766			349,991		—		521,757
Other segment items1		330,736			201,149		289,624		821,509
Impairment of goodwill and indefinite-lived asset		275,170			—		—		275,170
Depreciation and amortization		130,212			41,728		32,613		204,553
Income from equity method investments		(2,064	)		—		—		(2,064	)
Total segment operating expenses from continuing operations		1,624,909			1,294,774		941,624		3,861,307
Total segment operating (loss) income from continuing operations	$	(318,573	)	$	255	$	23,335	$	(294,983	)

	Year Ended December 31, 2023
(in thousands)	Branded Services			Experiential Services		Retailer Services		Total Company
Revenues	$	1,758,417		$	1,159,449	$	982,259	$	3,900,125
Less:
Compensation and benefits		1,009,334			638,081		630,484		2,277,899
Reimbursable expenses		179,029			307,610		—		486,639
Other segment items1		417,320			173,879		304,334		895,533
Impairment of goodwill and indefinite-lived asset		43,500			—		—		43,500
Depreciation and amortization		140,932			36,584		31,340		208,856
Deconsolidation of European joint venture		(58,891	)		—		—		(58,891	)
Total segment operating expenses from continuing operations		1,731,224			1,156,154		966,158		3,853,536
Total segment operating income from continuing operations	$	27,193		$	3,295	$	16,101	$	46,589

	Year Ended December 31, 2022
(in thousands)	Branded Services			Experiential Services			Retailer Services			Total Company
Revenues	$	1,764,076		$	904,230		$	978,036		$	3,646,342
Less:
Compensation and benefits		994,007			523,517			629,162			2,146,686
Reimbursable expenses		178,474			217,690			—			396,164
Other segment items1		370,628			142,565			292,810			806,003
Impairment of goodwill and indefinite-lived asset		831,008			354,452			387,063			1,572,523
Depreciation and amortization		144,354			37,906			33,786			216,046
Loss on divestiture		2,863			—			—			2,863
Total segment operating expenses from continuing operations		2,521,334			1,276,130			1,342,821			5,140,285
Total segment operating loss from continuing operations	$	(757,258	)	$	(371,900	)	$	(364,785	)	$	(1,493,943	)

(1) The “other segment items” category primarily consists of costs incurred in the execution of service obligations, including supplies, technology, and other direct expenses such as travel. These costs align with the segment-level information regularly provided to the CODM and represent the difference between revenue and the significant expense categories above in determining segment profitability.

Revenues by geographic region are as follows:

	Year Ended December 31,
(in thousands)	2024		2023		2022
Revenues
North America	$	3,412,947	$	3,393,718	$	3,176,774
Asia Pacific		145,574		125,569		96,075
Europe		7,803		6,472		2,010
European Joint Venture(1)		—		374,366		371,483
Total revenue	$	3,566,324	$	3,900,125	$	3,646,342

(1) The Company’s European joint venture was deconsolidated during fiscal year 2023. For further details, see Note 2 — Discontinued Operations, Deconsolidation of European Joint Venture, Divestitures and Acquisitions.

North American revenues were primarily services provided in the U.S. representing revenues of $3.1 billion, $3.2 billion, and $3.0 billion during the years ended December 31, 2024, 2023, and 2022, respectively. The majority of the Company’s long-lived assets are primarily located in North America. Long-lived assets located in all other geographic regions as of December 31, 2024 and 2023 are not material. North American long-lived assets were primarily in the U.S. representing long-lived assets of $97.1 million and $64.1 million as of December 31, 2024 and 2023, respectively. The classification of “Asia Pacific” primarily includes the Company’s operations in Japan, South Korea and Taiwan. The classification of “Europe” primarily includes the Company’s operations in Spain, France and Sweden. The Company does not disclose total assets by segment as it is not provided to the CODM.