Segment and Geographic Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

15. 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, 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 nine months ended September 30, 2023, this segment generated 44% of total revenue. On August 2, 2023, the Company divested the entity that operated the HealthPay24 solution, which was previously included in the Company's Enterprise Solutions segment.

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 nine months ended September 30, 2023, this segment generated 56% 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 excluding interest income (expense), net; provision for (benefit from) income taxes; depreciation; and amortization of intangible assets, as further adjusted for gain on sale of business, transaction-related expenses and stock-based compensation. 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 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Revenue
Enterprise Solutions	$	42,251		$	35,866		$	122,204		$	99,743
SMB Solutions		55,481			42,930			158,369			120,277
Total revenue		97,732			78,796			280,573			220,020
Adjusted EBITDA
Enterprise Solutions		5,860			4,577			19,481			13,338
SMB Solutions		21,217			16,314			59,882			45,239
Total Adjusted EBITDA from reportable segments		27,077			20,891			79,363			58,577
Unallocated corporate expenses		(8,230	)		(7,669	)		(23,815	)		(22,833	)
Total Adjusted EBITDA		18,847			13,222			55,548			35,744
Reconciling items:
Interest income (expense), net		3,555			1,005			9,180			1,127
Amortization of intangible assets		(3,954	)		(3,900	)		(11,754	)		(11,700	)
Depreciation		(1,061	)		(816	)		(3,084	)		(2,289	)
Gain on sale of business		10,511			—			10,511			—
Transaction-related expenses		(3,417	)		—			(5,639	)		38
Stock-based compensation		(6,616	)		(3,798	)		(16,618	)		(10,112	)
Income before income taxes		17,865			5,713			38,144			12,808
Provision for (benefit from) income taxes		6,335			(1,057	)		18,152			(2,900	)
Net income	$	11,530		$	6,770		$	19,992		$	15,708

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

Geographic Information

For the nine months ended September 30, 2023 and 2022, 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.