Segment and Geographic Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

16. Segment and Geographic Information

Segment Information

The Company has determined that its chief executive officer is its chief operating decision maker (“CODM”) and the Company is organized into two reportable segments: Enterprise Solutions and SMB Solutions. The reportable segments were determined based on how the CODM reviews business performance and makes decisions about resources to be allocated.

The Enterprise Solutions segment is primarily engaged in providing SaaS solutions that simplify customer-client engagement primarily through electronic billing and digital payments. Enterprise solutions are built to address the unique needs of specific verticals: Government, Utilities, Financial Services, Healthcare and Giving. For the Enterprise Solutions segment, the Company integrates directly with its customers’ core software systems and utilizes a partner-assisted direct sales model for purposes of its go-to-market strategy. The Company generates a significant majority of its revenue in this segment from transaction and usage-based revenue. For the six months ended June 30, 2022, this segment generated 45% of total revenue.

The SMB Solutions segment is primarily engaged in providing end-to-end practice management solutions geared toward the Health & Wellness industry. For the Company's SMB Solutions segment, the Company primarily relies on a free trial to paid customer sales model. The Company generates interest for its offerings in the Company's SMB Solutions segment through a combination of search engine optimization, word-of-mouth, paid customer referrals, and search engine marketing. The Company generates a majority of its revenue in this segment from subscription revenue. For the six months ended June 30, 2022, this segment generated 55% of total revenue.

The CODM evaluates segment operating performance using revenue and Adjusted EBITDA, as defined below, from reportable segments to make resource allocation decisions and to evaluate segment performance. Adjusted EBITDA assists management in comparing the Company’s performance on a consistent basis for purposes of business decision-making. The Company defines Adjusted EBITDA as net income (loss) excluding interest income (expense), net; (benefit from) provision for income taxes; depreciation; and amortization of intangible assets, as further adjusted for transaction-related expenses, fair value adjustment of acquired deferred revenue, stock/equity-based compensation and restructuring charges. Adjusted EBITDA from reportable segments excludes unallocated corporate costs which are primarily comprised of costs for accounting, finance, legal, human resources and costs for certain executives supporting overall business strategy and execution.

The following table sets forth the revenue and Adjusted EBITDA results attributable to each reportable segment and includes a reconciliation of the totals reported for the reportable segments to the applicable line items in the Company’s accompanying condensed consolidated statements of operations and comprehensive income (loss) (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenue
Enterprise Solutions	$	33,017		$	25,635		$	63,877		$	49,714
SMB Solutions		40,845			26,112			77,347			49,457
Total revenue		73,862			51,747			141,224			99,171
Adjusted EBITDA
Enterprise Solutions		4,285			3,288			8,761			6,576
SMB Solutions		15,907			9,195			28,925			17,322
Total Adjusted EBITDA from reportable segments		20,192			12,483			37,686			23,898
Unallocated corporate expenses		(8,227	)		(4,719	)		(15,164	)		(8,215	)
Total Adjusted EBITDA		11,965			7,764			22,522			15,683
Reconciling items:
Interest income (expense), net		210			(2,295	)		122			(4,600	)
Amortization of intangible assets		(3,899	)		(3,900	)		(7,800	)		(7,800	)
Depreciation		(733	)		(537	)		(1,473	)		(986	)
Transaction-related expenses		—			(848	)		38			(1,232	)
Fair value adjustment of acquired deferred revenue		—			(35	)		—			(94	)
Stock/equity-based compensation		(3,327	)		(338	)		(6,314	)		(560	)
Restructuring charges		—			(89	)		—			(89	)
Income (loss) before income taxes		4,216			(278	)		7,095			322
(Benefit from) provision for income taxes		(2,663	)		(67	)		(1,843	)		48
Net income (loss)	$	6,879		$	(211	)	$	8,938		$	274

The Company’s CODM does not separately evaluate assets by segment, and therefore assets by segment are not presented.

Geographic Information

For the six months ended June 30, 2022 and 2021, revenues by geographic region are not disclosed as revenue outside the United States does not exceed 10% of total revenue.

The Company does not disclose geographic information for long-lived assets as long-lived assets located outside the United States do not exceed 10% of total assets.