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Operating Segments
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Operating Segments

Note 14 — Operating Segments

The Company's chief operating decision-maker (used in determining the Company's segments) is the chief executive officer and the chief financial officer. 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.

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, restructuring and related costs, interest expense, other income, 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 September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

80,606

 

 

$

—

 

 

$

—

 

 

$

80,606

 

Consulting revenues

 

 

6,517

 

 

 

21,720

 

 

 

—

 

 

 

28,237

 

Events revenues

 

 

—

 

 

 

—

 

 

 

4,588

 

 

 

4,588

 

Total segment revenues

 

 

87,123

 

 

 

21,720

 

 

 

4,588

 

 

 

113,431

 

Segment expenses

 

 

(31,749

)

 

 

(10,739

)

 

 

(4,031

)

 

 

(46,519

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(58,796

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(3,041

)

Restructuring and related costs

 

 

 

 

 

 

 

 

 

 

 

(19

)

Interest expense, other income, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(195

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

4,861

 

 

 

 

 

Research Segment

 

 

Consulting Segment

 

 

Events Segment

 

 

Consolidated

 

Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

87,038

 

 

$

—

 

 

$

—

 

 

$

87,038

 

Consulting revenues

 

 

9,015

 

 

 

28,367

 

 

 

—

 

 

 

37,382

 

Events revenues

 

 

—

 

 

 

—

 

 

 

3,259

 

 

 

3,259

 

Total segment revenues

 

 

96,053

 

 

 

28,367

 

 

 

3,259

 

 

 

127,679

 

Segment expenses

 

 

(33,058

)

 

 

(14,747

)

 

 

(3,377

)

 

 

(51,182

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(64,588

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(3,352

)

Interest expense, other income, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(238

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

8,319

 

 

 

 

Research Segment

 

 

Consulting Segment

 

 

Events Segment

 

 

Consolidated

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

249,211

 

 

$

—

 

 

$

—

 

 

$

249,211

 

Consulting revenues

 

 

21,439

 

 

 

68,518

 

 

 

—

 

 

 

89,957

 

Events revenues

 

 

—

 

 

 

—

 

 

 

23,522

 

 

 

23,522

 

Total segment revenues

 

 

270,650

 

 

 

68,518

 

 

 

23,522

 

 

 

362,690

 

Segment expenses

 

 

(99,792

)

 

 

(34,521

)

 

 

(16,186

)

 

 

(150,499

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(182,672

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(9,175

)

Restructuring and related costs

 

 

 

 

 

 

 

 

 

 

 

(12,140

)

Interest expense, other income, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(654

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

7,550

 

 

 

 

Research Segment

 

 

Consulting Segment

 

 

Events Segment

 

 

Consolidated

 

Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

262,265

 

 

$

—

 

 

$

—

 

 

$

262,265

 

Consulting revenues

 

 

31,126

 

 

 

83,949

 

 

 

—

 

 

 

115,075

 

Events revenues

 

 

—

 

 

 

—

 

 

 

23,556

 

 

 

23,556

 

Total segment revenues

 

 

293,391

 

 

 

83,949

 

 

 

23,556

 

 

 

400,896

 

Segment expenses

 

 

(100,135

)

 

 

(43,123

)

 

 

(16,179

)

 

 

(159,437

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(195,660

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(10,068

)

Interest expense, other income, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(1,114

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

34,617