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Operating Segments
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Operating Segments

Note 13 — Operating Segments

The Company's chief executive officer and the chief financial officer are the chief operating decision-maker (used in determining the Company's segments). The Company operates in three segments: Research, Consulting, and Events. These segments, which are also the Company's reportable segments, are based on the management structure of the Company and how the chief operating decision maker uses financial information to evaluate performance and determine how to allocate resources. The Company’s products and services are delivered through each segment as described below.

The Research segment includes the revenues from all of the Company’s research products as well as consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company’s research organization. Research segment costs include the cost of the organizations responsible for developing and delivering these products in addition to the costs of the product management organization responsible for product pricing and packaging, and the launch of new products.

The Consulting segment includes the revenues and the related costs 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.

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events. As of January 1, 2022, the Company realigned its events sales costs from selling and marketing expense to the Events segment as they now fall under the Events management structure. The 2021 amounts have been revised to conform to the current presentation.

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 exclude 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 income (expense), and gains on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

The Company provides information by reportable segment in the tables below (in thousands):

 

 

 

Research Segment

 

 

Consulting Segment

 

 

Events Segment

 

 

Consolidated

 

Three Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

89,447

 

 

$

—

 

 

$

—

 

 

$

89,447

 

Consulting revenues

 

 

10,921

 

 

 

28,341

 

 

 

—

 

 

 

39,262

 

Events revenues

 

 

—

 

 

 

—

 

 

 

19,537

 

 

 

19,537

 

Total segment revenues

 

 

100,368

 

 

 

28,341

 

 

 

19,537

 

 

 

148,246

 

Segment expenses

 

 

(32,897

)

 

 

(14,059

)

 

 

(11,051

)

 

 

(58,007

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(66,182

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(3,354

)

Interest expense, other income, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(432

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

20,271

 

 

 

 

Research Segment

 

 

Consulting Segment

 

 

Events Segment

 

 

Consolidated

 

Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

81,002

 

 

$

—

 

 

$

—

 

 

$

81,002

 

Consulting revenues

 

 

12,842

 

 

 

28,118

 

 

 

—

 

 

 

40,960

 

Events revenues

 

 

—

 

 

 

—

 

 

 

6,708

 

 

 

6,708

 

Total segment revenues

 

 

93,844

 

 

 

28,118

 

 

 

6,708

 

 

 

128,670

 

Segment expenses

 

 

(29,417

)

 

 

(12,851

)

 

 

(3,931

)

 

 

(46,199

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(65,204

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(3,968

)

Integration costs

 

 

 

 

 

 

 

 

 

 

 

(216

)

Interest expense, other expense, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(1,267

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

11,816

 

 

 

 

Research Segment

 

 

Consulting Segment

 

 

Events Segment

 

 

Consolidated

 

Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

175,227

 

 

$

—

 

 

$

—

 

 

$

175,227

 

Consulting revenues

 

 

22,111

 

 

 

55,582

 

 

 

—

 

 

 

77,693

 

Events revenues

 

 

—

 

 

 

—

 

 

 

20,297

 

 

 

20,297

 

Total segment revenues

 

 

197,338

 

 

 

55,582

 

 

 

20,297

 

 

 

273,217

 

Segment expenses

 

 

(67,077

)

 

 

(28,376

)

 

 

(12,802

)

 

 

(108,255

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(131,072

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(6,716

)

Interest expense, other expense, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(876

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

26,298

 

 

 

 

Research Segment

 

 

Consulting Segment

 

 

Events Segment

 

 

Consolidated

 

Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

155,970

 

 

$

—

 

 

$

—

 

 

$

155,970

 

Consulting revenues

 

 

25,573

 

 

 

53,937

 

 

 

—

 

 

 

79,510

 

Events revenues

 

 

—

 

 

 

—

 

 

 

6,971

 

 

 

6,971

 

Total segment revenues

 

 

181,543

 

 

 

53,937

 

 

 

6,971

 

 

 

242,451

 

Segment expenses

 

 

(60,134

)

 

 

(25,176

)

 

 

(5,495

)

 

 

(90,805

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(122,822

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(7,871

)

Integration costs

 

 

 

 

 

 

 

 

 

 

 

(334

)

Interest expense, other expense, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(2,866

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

17,753