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Segment Information | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company’s businesses are based on the organizational structure used by the chief operating decision maker (“CODM”). The CODM views the Company as two businesses: Digital Media and Cybersecurity and Martech. The accounting policies of the businesses are the same as those described in the Company’s Annual Report on Form 10-K filed with the SEC on March 15, 2021. The Company evaluates performance based on revenue, gross margin and profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses. Information on reportable segments and reconciliation to income from operations is as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |  |
| 2022 |  | 2021 |  | 2022 |  | 2021 |  |  |  |  |
Revenue by reportable segment: |  |  |  |  |  |  |  |  |  |  |  |
Digital Media | $ | 258,700 |  |  | $ | 253,977 |  |  | $ | 493,527 |  |  | $ | 480,850 |  |  |  |  |  |
Cybersecurity and Martech | 78,910 |  |  | 87,608 |  |  | 159,404 |  |  | 172,510 |  |  |  |  |  |
Elimination of inter-segment revenues | (254) |  |  | (292) |  |  | (507) |  |  | (410) |  |  |  |  |  |
Total segment revenues | 337,356 |  |  | 341,293 |  |  | 652,424 |  |  | 652,950 |  |  |  |  |  |
Corporate(1) | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |
Total revenues | 337,356 |  |  | 341,293 |  |  | 652,424 |  |  | 652,950 |  |  |  |  |  |
Gross profit by reportable segment: |  |  |  |  |  |  |  |  |  |  |  |
Digital Media | $ | 233,447 |  |  | $ | 228,698 |  |  | $ | 443,153 |  |  | $ | 434,759 |  |  |  |  |  |
Cybersecurity and Martech | 58,263 |  |  | 63,895 |  |  | 117,656 |  |  | 125,754 |  |  |  |  |  |
Elimination of inter-segment gross profit | (358) |  |  | (76) |  |  | (489) |  |  | (126) |  |  |  |  |  |
Total segment gross profit | 291,352 |  |  | 292,517 |  |  | 560,320 |  |  | 560,387 |  |  |  |  |  |
Corporate(1) | — |  |  | (9) |  |  | — |  |  | (74) |  |  |  |  |  |
Total gross profit | 291,352 |  |  | 292,508 |  |  | 560,320 |  |  | 560,313 |  |  |  |  |  |
Direct costs by reportable segment(2): |  |  |  |  |  |  |  |  |  |  |  |
Digital Media | $ | 188,824 |  |  | $ | 184,592 |  |  | $ | 366,410 |  |  | $ | 360,010 |  |  |  |  |  |
Cybersecurity and Martech | 45,686 |  |  | 85,090 |  |  | 92,751 |  |  | 135,074 |  |  |  |  |  |
Elimination of inter-segment direct costs | (358) |  |  | (76) |  |  | (489) |  |  | (126) |  |  |  |  |  |
Total segment direct costs | 234,152 |  |  | 269,606 |  |  | 458,672 |  |  | 494,958 |  |  |  |  |  |
Corporate(1) | 11,304 |  |  | 12,847 |  |  | 25,199 |  |  | 28,419 |  |  |  |  |  |
Total direct costs | 245,456 |  |  | 282,453 |  |  | 483,871 |  |  | 523,377 |  |  |  |  |  |
Operating income by reportable segment: |  |  |  |  |  |  |  |  |  |  |  |
Digital Media | $ | 44,623 |  |  | $ | 44,106 |  |  | $ | 76,743 |  |  | $ | 74,749 |  |  |  |  |  |
Cybersecurity and Martech | 12,577 |  |  | (21,195) |  |  | 24,905 |  |  | (9,320) |  |  |  |  |  |
Total segment operating income | 57,200 |  |  | 22,911 |  |  | 101,648 |  |  | 65,429 |  |  |  |  |  |
Corporate(1) | (11,313) |  |  | (12,856) |  |  | (25,199) |  |  | (28,493) |  |  |  |  |  |
Income from operations | $ | 45,887 |  |  | $ | 10,055 |  |  | $ | 76,449 |  |  | $ | 36,936 |  |  |  |  |  |
(1)Corporate includes costs associated with general and administrative and other expenses that are managed on a global basis and that are not directly attributable to any particular segment. (2)Direct costs for each segment include other operating expenses that are directly attributable to the segment, such as employee compensation expense, local sales and marketing expenses, engineering and network operations expense, depreciation and amortization and other administrative expenses. For the three and six months ended June 30, 2021, goodwill impairment related to our B2B Backup business is also included within direct costs for Cybersecurity and Martech. The CODM does not use Balance Sheet and Cash Flow information in connection with operating and investment decisions other than as presented for Digital Media and Cybersecurity and Martech. Accordingly, the following segment information is presented for Digital Media and Cybersecurity and Martech.
| June 30, 2022 |  | December 31, 2021
Assets: |  |  |
Digital Media | $ | 2,062,499 |  |  | $ | 2,043,204 |
Cybersecurity and Martech | 1,090,546 |  |  | 1,088,741 |
Total assets from reportable segments | 3,153,045 |  |  | 3,131,945 |
Corporate | 390,050 |  |  | 638,335 |
Total assets | $ | 3,543,095 |  |  | $ | 3,770,280 |
| Six Months Ended June 30,
| 2022 |  | 2021
Capital expenditures |  |  |
Digital Media | $ | 46,777 |  |  | $ | 38,047 |
Cybersecurity and Martech | 7,098 |  |  | 11,709 |
Total from reportable segments | 53,875 |  |  | 49,756 |
Corporate | 1 |  |  | — |
Capital expenditures of discontinued operations | — |  |  | 8,010 |
Total capital expenditures | $ | 53,876 |  |  | $ | 57,766 |
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2022 |  | 2021 |  | 2022 |  | 2021 |  |  |  |
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |
Digital Media | $ | 47,543 |  |  | $ | 49,076 |  |  | $ | 93,664 |  |  | $ | 97,426 |  |  |  |  |
Cybersecurity and Martech | 12,264 |  |  | 12,836 |  |  | 25,121 |  |  | 27,061 |  |  |  |  |
Total from reportable segments | 59,807 |  |  | 61,912 |  |  | 118,785 |  |  | 124,487 |  |  |  |  |
Corporate | 65 |  |  | 45 |  |  | 158 |  |  | 138 |  |  |  |  |
Depreciation and amortization of discontinued operations | — |  |  | 2,779 |  |  | — |  |  | 5,601 |  |  |  |  |
Total depreciation and amortization | $ | 59,872 |  |  | $ | 64,736 |  |  | $ | 118,943 |  |  | $ | 130,226 |  |  |  |  |
The Company maintains operations in the U.S., Canada, Ireland, the United Kingdom, India and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands).
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2022 |  | 2021 |  | 2022 |  | 2021 |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 286,757 |  |  | $ | 284,398 |  |  | $ | 550,232 |  |  | $ | 540,533 |  |  |  |  |
Canada | 8,086 |  |  | 8,159 |  |  | 16,151 |  |  | 16,311 |  |  |  |  |
Ireland | 7,732 |  |  | 9,342 |  |  | 16,544 |  |  | 19,055 |  |  |  |  |
All other countries | 34,781 |  |  | 39,394 |  |  | 69,497 |  |  | 77,051 |  |  |  |  |
Total | $ | 337,356 |  |  | $ | 341,293 |  |  | $ | 652,424 |  |  | $ | 652,950 |  |  |  |  |
| June 30, 2022 |  | December 31, 2021
Long-lived assets: |  |  |
United States | $ | 677,416 |  |  | $ | 726,128 |
All other countries | 74,041 |  |  | 63,423 |
Total | $ | 751,457 |  |  | $ | 789,551 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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