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Segments
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segments

14. Segments

For performance assessment and resource allocation purposes, the Company’s chief operating decision maker (“CODM”) reviews discrete financial results of two operating segments as of December 31, 2022: (1) Consumer Payments and (2) Business Payments. These operating segments represent reportable segments based on ASC 280, Segment Reporting. Prior year amounts have been reclassified to conform to the current presentation.

Consumer Payments

The Consumer Payments segment provides payment processing solutions (including debit and credit card processing, ACH processing and other electronic payment acceptance solutions, as well as our loan disbursement product) that enable the Company’s clients to collect payments and disburse funds to consumers and includes the Company’s clearing and settlement solutions (“RCS”). RCS is the Company’s proprietary clearing and settlement platform through which the Company markets customizable payment processing programs to other ISOs and payment facilitators. The strategic vertical markets served by the Consumer Payments segment primarily include personal loans, automotive loans, receivables management, credit unions, mortgage servicing, consumer healthcare and diversified retail. The Consumer Payments segment represented approximately 88% of the Company’s total revenue after any intersegment eliminations for the three months ended March 31, 2023.

Business Payments

The Business Payments segment provides payment processing solutions (including accounts payable automation, debit and credit card processing, virtual credit card processing, ACH processing and other electronic payment acceptance solutions) that enable the Company’s clients to collect or send payments to other businesses. The strategic vertical markets served within the Business Payments segment primarily include retail automotive, education, field services, governments and municipalities, healthcare, media, HOA management and hospitality. The Business Payments segment represented approximately 12% of the Company’s total revenue after any intersegment eliminations for the three months ended March 31, 2023.

The following table presents revenue and gross profit for each reportable segment.

 

 

 

Three Months Ended March 31,

 

($ in thousand)

 

2023

 

 

2022

 

Revenue

 

 

 

 

 

 

Consumer Payments

 

$

69,940

 

 

$

61,081

 

Business Payments

 

 

8,675

 

 

 

8,892

 

Elimination of intersegment revenues (1)

 

 

(4,078

)

 

 

(2,409

)

Total revenue

 

$

74,537

 

 

$

67,564

 

Gross profit (2)

 

 

 

 

 

 

Consumer Payments

 

$

54,625

 

 

$

47,491

 

Business Payments

 

 

6,025

 

 

 

5,917

 

Elimination of intersegment revenues

 

 

(4,078

)

 

 

(2,409

)

Total gross profit

 

$

56,572

 

 

$

50,999

 

 

 

 

 

 

 

 

Total other operating expenses (3)

 

$

74,536

 

 

$

57,907

 

Total other income (expense)

 

 

(5,611

)

 

 

23,637

 

Income (loss) before income tax expense

 

 

(23,575

)

 

 

16,729

 

Income tax expense

 

 

(4,357

)

 

 

(3,843

)

Net income (loss)

 

$

(27,932

)

 

$

12,886

 
(1)
Represents intercompany eliminations between segments for consolidation purpose.
(2)
Represents revenue less costs of services.
(3)
Represents total operating expenses less costs of services.

Revenue and costs of services are attributed directly to each segment. There is no significant concentration of revenue or assets in foreign countries as of March 31, 2023. The CODM reporting package does not include discrete asset details of the operating segments as this information is not considered by the CODM for resource allocation or other segment analysis purposes.