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Segment Reporting
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Harte Hanks is a leading global customer experience company. Beginning in 2024, we have organized our operations into four reportable segments based on the types of products and services we provide: Marketing Services, Customer Care, Sales Services and Fulfillment & Logistics Services. The Sales Service is our new reportable segment for 2024 as it has become strategically more important for our company. It was included in Customer Care segment in 2023. 2023 segment reporting has been restated to reflect this change.
Our Marketing Services segment leverages data, insight, and experience to support clients as they engage customers through digital, traditional, and emerging channels. We partner with clients to develop strategies and tactics to identify and prioritize customer audiences in B2C and B2B transactions. Our key service offerings include strategic business, brand, marketing and communications planning, data strategy, audience identification and prioritization, predictive modeling, creative development and execution across traditional and digital channels, website and app development, platform architecture, database build and management, marketing automation, and performance measurement, reporting and optimization.
Our Customer Care segment offers intelligently responsive contact center solutions, which use real-time data to effectively interact with each customer. Customer contacts are handled through phone, e-mail, social media, text messaging, chat and digital self-service support. We provide these services utilizing our advanced technology infrastructure, human resource management skills and industry experience.
Our Sales Services segment enables customers to optimize their go-to-market function by offering a range of outsourced services including sales process optimization, sales play development, inbound lead qualification and outbound sales prospecting.
Our Fulfillment & Logistics segment consists of mail and product fulfillment and logistics services. We offer a variety of product fulfillment solutions, including printing on demand, managing product recalls, and distributing literature and promotional products to support B2B trade, drive marketing campaigns, and improve customer experience. We are also a provider of third-party logistics and freight optimization in the United States.
There are three principal financial measures reported to our CEO (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are revenue, operating income (loss) and operating income (loss) plus depreciation and amortization (“EBITDA”). Operating income for segment reporting disclosed below, is revenues less operating costs and allocated corporate expenses. Segment operating expenses include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods. Unallocated corporate expenses are corporate overhead expenses not attributable to the operating groups. Interest income and expense are not allocated to the segments. The Company does not allocate assets to our reportable segments for internal reporting purposes, nor does our CEO evaluate reportable segments using discrete asset information. The accounting policies of the segments are consistent with those described in the Note A, Overview and Significant Accounting Policies.
The following table presents financial information by segment for the three months ended March 31, 2024:
In thousandsMarketing ServicesCustomer CareSales ServicesFulfillment & LogisticsRestructuring ExpenseUnallocated CorporateTotal
Revenue$8,921 $12,442 $4,662 $19,423 $— $— $45,448 
Segment operating expense7,150 9,407 3,339 17,043 853 6,235 44,027 
Contribution margin (loss)$1,771 $3,035 $1,323 $2,380 $(853)$(6,235)$1,421 
Overhead allocation806 582 194 801 — (2,383)— 
EBITDA$965 $2,453 $1,129 $1,579 $(853)$(3,852)$1,421 
Depreciation and amortization177 62 195 248 — 364 1,046 
Operating income (loss)$788 $2,391 $934 $1,331 $(853)$(4,216)$375 
The following table presents financial information by segment for the three months ended March 31, 2023:
In thousandsMarketing ServicesCustomer CareSales ServicesFulfillment & LogisticsRestructuring ExpenseUnallocated CorporateTotal
Revenue$11,239 $11,629 $2,787 $21,465 $— $— $47,120 
Segment operating expense9,259 9,388 2,266 18,509 — 5,579 45,001 
Contribution margin (loss)$1,980 $2,241 $521 $2,956 $— $(5,579)$2,119 
Overhead allocation789 714 — 758 — (2,261)— 
EBITDA$1,191 $1,527 $521 $2,198 $— $(3,318)$2,119 
Depreciation and amortization49 208 192 246 — 371 1,066 
Operating income (loss)$1,142 $1,319 $329 $1,952 $— $(3,689)$1,053