Operating Segments

3 Months Ended

Mar. 31, 2020

Note 14 — Operating Segments

As of January 1, 2020, the Company realigned its internal management and reporting into Products and Research segments. The realignment eliminated the SiriusDecisions segment as it no longer operated under a separate management structure. The 2019 amounts have been revised to conform to the current presentation.

The Products segment includes the revenues of the Connect, Analytics, and Events products and the costs of the organizations responsible for developing and delivering these products. In addition, this segment includes Consulting revenues and the related cost of the Company’s project consulting organization. The project consulting organization delivers a majority of the Company’s project consulting revenue and certain advisory services primarily related to the Analytics product line. This segment also includes the costs of the product management organization that is responsible for product pricing and packaging and the launch of new products.

The Research segment includes the revenues of the Research products and the cost of the organizations responsible for developing and delivering the Company’s Research products. In addition, this segment includes Consulting revenues primarily from the delivery of advisory services (such as workshops, speeches and advisory days) delivered by the Company’s research analysts.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and excludes selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, interest and other expense, and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

The Company provides disaggregated revenue by product in the segment tables below (in thousands):

	Products			Research			Consolidated
Three Months Ended March 31, 2020
Research services revenues
Research	$	—		$	53,606		$	53,606
Connect		13,889			—			13,889
Analytics		5,301			—			5,301
Total research services revenues		19,190			53,606			72,796

Advisory services and events revenues
Consulting		20,638			12,821			33,459
Events		90			—			90
Total advisory services and events revenues		20,728			12,821			33,549
Total segment revenues		39,918			66,427			106,345
Segment expenses		(19,378	)		(18,784	)		(38,162	)
Selling, marketing, administrative and other expenses								(59,875	)
Amortization of intangible assets								(4,712	)
Acquisition and integration costs								(2,875	)
Interest expense, other income and gain on investments								(1,215	)
Loss before income taxes							$	(494	)

	Products			Research			Consolidated
Three Months Ended March 31, 2019
Research services revenues
Research	$	—		$	49,780		$	49,780
Connect		13,571			—			13,571
Analytics		5,258			—			5,258
Total research services revenues		18,829			49,780			68,609

Advisory services and events revenues
Consulting		18,885			12,902			31,787
Events		253			—			253
Total advisory services and events revenues		19,138			12,902			32,040
Total segment revenues		37,967			62,682			100,649
Segment expenses		(19,948	)		(20,397	)		(40,345	)
Selling, marketing, administrative and other expenses								(62,011	)
Amortization of intangible assets								(6,210	)
Acquisition and integration costs								(2,967	)
Interest expense, other income and loss on investments								(2,658	)
Loss before income taxes							$	(13,542	)