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Segment Information | 6 Months Ended
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Mar. 31, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company provides results in four reportable operating segments: GovDeals, RSCG, CAG and Machinio. Descriptions of our reportable segments are as follows: •The GovDeals reportable segment provides self-directed service solutions in which sellers list their own assets, and it consists of marketplaces that enable local and state government entities including city, county and state agencies, as well as quasi-governmental businesses located in the United States and Canada to sell surplus and salvage assets. GovDeals also offers a suite of services to sellers that includes asset sales and marketing. Through the end of fiscal 2019, GovDeals provided self-directed service solutions to commercial businesses as part of the Auction Deals marketplace. •The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods and retail capital assets. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce services. This segment includes the Company's Liquidation.com, Liquidation.com DIRECT, and Secondipity marketplaces. •The CAG reportable segment provides full-service solutions to sellers and it consists of marketplaces that enable commercial businesses to sell surplus, salvage, and scrap assets. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. Commercial sellers are located in the United States, Europe, Australia and Asia. This segment includes the Company's Network International and GoIndustry DoveBid marketplaces and, beginning in fiscal 2020, self-directed service solutions for commercial businesses within a unified marketplace previously referred to as Auction Deals. Prior to the conclusion of the Scrap Contract (see Note 2), CAG sold scrap assets from the DoD on its Government Liquidation marketplace. •The Machinio reportable segment operates a global online platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. We also report results of Corporate & Other, which for the three and six months ended March 31, 2019 includes a previously existing operating segment that did not meet the quantitative thresholds to be a reportable segment, IronDirect. The Company exited the IronDirect business in January 2019. Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker (CODM), which is the Company's Chief Executive Officer. The Company reports segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with that assessment, the CODM uses segment gross profit to evaluate the performance of each segment. Gross profit is calculated as total revenue less cost of goods sold and seller distributions. The following table sets forth certain financial information for the Company's reportable segments:
|  | Three Months Ended March 31, |  |  |  | Six Months Ended March 31, |  |
(in thousands) |  | 2020 |  | 2019 |  | 2020 |  | 2019
GovDeals: |  |  |  |  |  |  |  |
| Revenue | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| Fee revenue | 7,822 |  |  | 7,697 |  |  | 15,837 |  |  | 15,355 |
| Total revenue | 7,822 |  |  | 7,697 |  |  | 15,837 |  |  | 15,355 |
| Gross profit | $ | 7,278 |  |  | $ | 7,042 |  |  | $ | 14,724 |  |  | $ | 14,103 |
RSCG: |  |  |  |  |  |  |  |
| Revenue | $ | 32,577 |  |  | $ | 29,823 |  |  | $ | 60,403 |  |  | $ | 55,894 |
| Fee revenue | 3,680 |  |  | 4,188 |  |  | 7,551 |  |  | 7,595 |
| Total revenue | 36,257 |  |  | 34,011 |  |  | 67,954 |  |  | 63,489 |
| Gross profit | $ | 12,394 |  |  | $ | 12,287 |  |  | $ | 22,699 |  |  | $ | 21,836 |
CAG: |  |  |  |  |  |  |  |
| Revenue | $ | 2,626 |  |  | $ | 7,498 |  |  | $ | 5,149 |  |  | $ | 16,727 |
| Fee revenue | 4,413 |  |  | 6,186 |  |  | 9,832 |  |  | 12,438 |
| Total revenue | 7,039 |  |  | 13,684 |  |  | 14,981 |  |  | 29,165 |
| Gross profit | $ | 4,922 |  |  | $ | 8,614 |  |  | $ | 10,736 |  |  | $ | 17,496 |
Machinio: |  |  |  |  |  |  |  |
| Revenue | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| Fee revenue | 1,706 |  |  | 1,374 |  |  | 3,556 |  |  | 2,366 |
| Total revenue | 1,706 |  |  | 1,374 |  |  | 3,556 |  |  | 2,366 |
| Gross Profit | $ | 1,611 |  |  | $ | 1,265 |  |  | $ | 3,374 |  |  | $ | 2,143 |
Corporate & Other: |  |  |  |  |  |  |  |
| Revenue | $ | — |  |  | $ | 34 |  |  | $ | — |  |  | $ | 469 |
| Fee revenue | — |  |  | — |  |  | — |  |  | 9 |
| Total revenue | — |  |  | 34 |  |  | — |  |  | 478 |
| Gross profit | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | 113 |
Consolidated: |  |  |  |  |  |  |  |
| Revenue | $ | 35,203 |  |  | $ | 37,355 |  |  | $ | 65,552 |  |  | $ | 73,090 |
| Fee revenue | 17,621 |  |  | 19,445 |  |  | 36,776 |  |  | 37,763 |
| Total revenue | 52,824 |  |  | 56,800 |  |  | 102,328 |  |  | 110,853 |
| Gross profit | $ | 26,205 |  |  | $ | 29,218 |  |  | $ | 51,533 |  |  | $ | 55,691 |
The following table presents a reconciliation of gross profit used in the reportable segments to the Company's consolidated results:
|  | Three Months Ended March 31, |  |  |  | Six Months Ended March 31, |  |
(in thousands) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Reconciliation: |  |  |  |  |  |  |  |
| Gross profit | $ | 26,205 |  |  | $ | 29,218 |  |  |  | $ | 51,533 |  |  |  | $ | 55,691 |
| Operating expenses | 30,669 |  |  | 32,353 |  |  |  | 60,794 |  |  |  | 63,696 |
| Other operating expenses | (12) |  |  | 1,350 |  |  |  | 181 |  |  |  | 1,555 |
| Interest and other income, net | (257) |  |  | (451) |  |  |  | (509) |  |  | (770) |
| Loss before provision for income taxes | $ | (4,195) |  |  | $ | (4,034) |  |  | $ | (8,933) |  |  | $ | (8,790) |
The percent of our revenues that came from transactions conducted outside of the United States for the three months ended March 31, 2020 and 2019 was 10.9% and 14.6%, respectively and the percent of our revenues that came from transactions conducted outside of the United States for the six months ended March 31, 2020 and 2019 was 13.1% and 15.4%, respectively.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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