The Company organizes its business structure around two operating segments based on review of discrete financial results for each of the operating segments by the Company’s chief operating decision maker (“CODM”), for performance assessment and resource allocation purposes. Each of the Company’s operating segments represents a reportable segment based on ASC 280, Segment Reporting. The Company’s two reportable segments are as follows: (1) Consumer Payments and (2) Business 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”) offering. RCS is the Company’s proprietary clearing and settlement platform through which the Company markets customizable payment processing programs to other Independent Sales Organizations (“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, 2024.

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, 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, 2024.

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


	Three Months Ended March 31,
($ in thousand)	2024			2023
Revenue
Consumer Payments	$	76,136		$	69,940
Business Payments		9,677			8,675
Elimination of intersegment revenues (1)		(5,093	)		(4,078	)
Total revenue	$	80,720		$	74,537
Gross profit (2)
Consumer Payments	$	59,591		$	54,625
Business Payments		7,047			6,025
Elimination of intersegment revenues		(5,093	)		(4,078	)
Total gross profit	$	61,545		$	56,572

Total other operating expenses (3)	$	64,049		$	74,536
Total other income (expense)		(2,559	)		(5,611	)
Loss before income tax expense		(5,063	)		(23,575	)
Income tax expense		(302	)		(4,357	)
Net loss	$	(5,365	)	$	(27,932	)

(1)

Represents intercompany eliminations between segments for consolidation purpose.

(2)

Represents revenue less costs of services (exclusive of depreciation and amortization).

(3)

Represents total operating expenses less costs of services (exclusive of depreciation and amortization).

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, 2024. The CODM reporting package does not include interest income (expense), net, depreciation and amortization, income tax benefit (expense) and discrete asset details of the operating segments as this information is not considered by the CODM for resource allocation or other segment analysis purposes.