Note 12 - Segment Information

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(12) Segment Information

We assess segment reporting in accordance with FASB Accounting Standards Codification Topic 280, Segment Reporting, each reporting period, including evaluating the reporting package provided and reviewed by the Chief Operating Decision Maker (“CODM”). We have concluded that our Chief Executive Officer is our CODM.

Based on the way our business is managed and reported to our CODM, we believe we have a single operating segment. We also have one reportable segment. Our revenue is primarily derived in the United States and our business is managed on a consolidated basis. All of our solutions within our one reporting segment provide analytics and insights that facilitate the measurement and improvement of patient and employee experience for healthcare organizations related to marketing, experience, reputation and governance.

The accounting policies for our operating segment are consistent with those described in the summary of significant accounting policies. The CODM assesses performance of our segment and allocates resources based on revenue and associate expenses based on three team categories: delivery, growth and support. The CODM uses net income, cash balances and debt availability to make decisions related to dividend distributions, acquisitions, and stock repurchases. Our segment results for our one reportable segment are the same as presented in our Consolidated Statements of Income. We do not have intra-entity sales or transfers. The measure of segment assets is reported on our consolidated balance sheet as total consolidated assets.

The table below presents our segment results, including other significant expenses reported to our CODM and other information related to our segment for the years ended December 31, 2024, 2023, and 2022 (in thousands) :

	2024			2023			2022
Revenue	$	143,060		$	148,580		$	151,568
Less:
Delivery associate expense		23,726			22,060			28,634
Delivery other operating expenses		31,667			30,201			28,859
Delivery total operating expenses		55,393			52,261			57,493
Growth associate expenses		23,407			24,233			19,860
Growth other operating expenses		6,803			9,473			5,580
Growth total operating expenses		30,210			33,706			25,440
Support associate expenses		5,940			6,134			6,507
Support other operating expenses		16,323			16,434			15,585
Support total operating expenses		22,263			22,568			22,092
Operating income		35,194			40,045			46,543
Interest income		125			820			168
Interest expense		(2,595	)		(862	)		(1,209	)
Reclassification of cumulative foreign currency translation adjustment into earnings		-			-			(2,569	)
Other non-operating income (expense)		(34	)		(41	)		(118	)
Provision for income taxes		(7,907	)		(8,991	)		(11,015	)
Net income	$	24,783		$	30,971		$	31,800

	2024		2023		2022
Other significant expenses provided to CODM*
Variable direct expenses	$	22,821	$	22,797	$	21,892
Fixed direct expenses		34,112		33,218		35,127
IT operational expenses		20,119		18,917		19,332
Total expenditures for purchases of long-lived assets**		21,856		18,707		9,965
Other significant noncash items*
Depreciation, amortization and impairment expense	$	6,022	$	5,899	$	5,277
Deferred income tax benefits		664		1,121		1,729
Reserve for uncertain tax positions		258		404		488
Share-based compensation		284		935		1,200
Contingent consideration liability assumed for acquisition		776		-		-

* Other significant expenses are also included within the team expenses captions such as associate and other operating expenses.

** Long-lived assets include property and equipment, right of use assets, intangible assets and goodwill, including those acquired in business combinations.

We closed the Canada office in 2022. As a result, no Canadian revenue is expected to be generated after 2022 and there were no long-lived assets remaining in Canada. The table below presents entity-wide information regarding our revenue and assets for the years ended and as of December 31, 2024, 2023, and 2022, by geographic area (in thousands):

	2024		2023		2022
Revenue:
United States	$	143,060	$	148,580	$	150,775
Canada		-		-		793
Total	$	143,060	$	148,580	$	151,568
Long-lived assets (property and equipment, right of use assets, right of use assets, identifiable intangibles and goodwill):
United States	$	108,664	$	93,350	$	81,029