Segment and Geographic Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company operates in the following two reportable segments, which are the same as its operating segments: 

–Insurance Services. Providing insurance policies for automobile owners

–Enterprise Business Solutions. Providing access to its developed technology under SaaS arrangements along with professional services to third party customers.

Operating segments are based upon the nature of the Company’s business and how its business is managed. The Company’s Chief Operating Decision Maker (“CODM”) is its CEO. The CODM uses the Company’s operating segment financial information to evaluate segment performance and to allocate resources. The CODM does not evaluate the performance of the Company’s assets on a segment basis for internal management reporting and, therefore, such information is not presented.

Contribution is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Segment contribution is segment revenue less the related costs of revenue and sales and marketing expenses. It excludes certain operating expenses that are not allocated to segments because they are separately managed at the consolidated corporate level. These unallocated costs include stock-based compensation expense, research and development expenses, and general and administrative expenses such as legal and accounting.

The assets and liabilities of the Enterprise Business Solutions segment have been classified as held for sale in the Company's consolidated balance sheets as of March 31, 2022. As the Enterprise Business Solutions operations do not qualify for presentation as a discontinued operation, operating results from the segment will continue to be reported in continuing operations on the consolidated statements of operations for the period ended March 31, 2022. Refer to Note 16, Business Disposition, for further information

The following table summarizes the operating results of the Company’s reportable segments (in thousands):

	Three Months Ended March 31,
	2022		2021
	(unaudited)
Revenue:
Insurance services	$	19,503	$	16,228
Enterprise business solutions	1,196		1,048
Total revenue	$	20,699	$	17,276
Contribution:
Insurance services	$	(4,419)	$	(1,863)
Enterprise business solutions	(1,113)		(732)
Total contribution	$	(5,532)	$	(2,595)

The following table provides a reconciliation of the Company’s total reportable segments’ contribution to its total loss from operations (in thousands):

	Three Months Ended March 31,
	2022		2021
	(unaudited)
Total segment contribution	$	(5,532)	$	(2,595)
Ceded premium, losses and LAE	1,293		(2,905)
Other income	522		1,147
Policy services expenses and other	1,606		371
Sales, marketing, and other acquisition costs	6,340		47,167
Research and development	2,351		2,006
Amortization of capitalized software	3,368		2,651
Other operating expenses	13,438		8,582
Loss from operations	$	(34,450)	$	(61,614)
Total other expense	(131)		42,013
Loss before taxes	$	(34,319)	$	(103,627)

Geographical Breakdown of Direct Earned Premiums

Direct earned premium by state is as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
	(unaudited)
California	$	15,760	$	15,146
Washington	3,585		2,985
New Jersey	2,682		2,459
Oregon	1,816		1,796
Illinois	1,138		1,041
Arizona	1,759		1,268
Pennsylvania	635		657
Virginia	756		470
Total premiums earned	$	28,131	$	25,822