v3.8.0.1

Segment and Geographic Information

12 Months Ended

Dec. 31, 2017

Segment and Geographic Information

Segment and Geographic Information

13. Segment and Geographic Information

        As a result of the acquisition of GetSmarter on July 1, 2017, the Company's operations consist of two operating segments and two reportable segments: the Graduate Program Segment and the Short Course Segment. The Company's Graduate Program Segment provides services to well-recognized nonprofit colleges and universities primarily in the United States to enable the online delivery of graduate programs. The Company's Short Course Segment provides premium online short courses to working professionals. The reportable segments represent businesses for which separate financial information is utilized by the chief operating decision maker for the purpose of allocating resources and evaluating performance.

        During the year ended December 31, 2017, four university clients in the Graduate Program Segment each accounted for 10% or more of the Company's consolidated revenue, as follows: $77.6 million, $48.2 million, $30.1 million and $28.3 million, which equals 27%, 17%, 11% and 10% of the Company's consolidated revenue, respectively. During the year ended December 31, 2016, three university clients in the Graduate Program Segment each accounted for 10% or more of the Company's consolidated revenue, as follows: $71.0 million, $36.7 million and $22.1 million, which equals 35%, 18% and 11% of the Company's consolidated revenue, respectively.

        As of December 31, 2017, two university clients in the Graduate Program Segment each accounted for 10% or more of the Company's consolidated accounts receivable balance, as follows: $9.4 million and $2.0 million, which equals 67% and 14% of the Company's consolidated accounts receivable, respectively. As of December 31, 2016, two university clients in the Graduate Program Segment each accounted for 10% or more of the Company's consolidated accounts receivable balance, as follows: $5.8 million and $1.4 million, which equals 74% and 17% of the Company's consolidated accounts receivable, respectively.

        For the Company's Short Course Segment, revenue and accounts receivable are derived from individual students, rather than directly from university clients. For the year ended December 31, 2017, revenue associated with the Company's three largest university clients in this segment accounted for approximately 82% of the segment's revenue, which was less than 10% of the Company's consolidated revenue on a combined basis. As of December 31, 2017, none of the student accounts receivable balances within this segment accounted for more than 10% of the Company's consolidated accounts receivable.

Segment Performance

        The following table summarizes financial information regarding each reportable segment's results of operations for the periods presented:

		Year Ended December 31,
		2017			2016			2015
		(dollars in thousands)
Revenue*
Graduate program segment		$	270,432		$	205,864		$	150,194
Short course segment			16,320			—			—
​	​	​	​	​	​	​	​	​	​	​
Total revenue		$	286,752		$	205,864		$	150,194
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
Segment profitability**
Graduate program segment		$	13,022		$	4,541		$	(6,629	)
Short course segment			(1,606	)		—			—
​	​	​	​	​	​	​	​	​	​	​
Total segment profitability		$	11,416		$	4,541		$	(6,629	)
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
Segment profitability margin***
Graduate program segment			5	%		2	%		(4	)%
Short course segment			(1	)%		—			—
​	​	​	​	​	​	​	​	​	​	​
Total segment profitability margin			4	%		2	%		(4	)%
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

*	The Company did not have any material intersegment revenues for any periods presented.
**	The Company evaluates segment profitability as net income or net loss, as applicable, before net interest income (expense), taxes, depreciation and amortization, foreign currency gains or losses, acquisition-related gains or losses and stock-based compensation expense. Some or all of these items may not be applicable in any given reporting period.
***	The Company defines segment profitability margin as segment profitability as a percentage of segment revenue

        The following table reconciles net loss to total segment profitability:

		Year Ended December 31,
		2017			2016			2015
		(in thousands)
Net loss		$	(29,423	)	$	(20,684	)	$	(26,733	)
Adjustments:
Interest income			(371	)		(383	)		(167	)
Interest expense			87			35			552
Foreign currency loss			866			—			—
Depreciation and amortization expense			19,624			9,750			7,220
Income tax benefit			(1,297	)		—			—
Stock-based compensation expense			21,930			15,823			12,499
​	​	​	​	​	​	​	​	​	​	​
Total adjustments			40,839			25,225			20,104
​	​	​	​	​	​	​	​	​	​	​
Total segment profitability		$	11,416		$	4,541		$	(6,629	)
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

        The Company's total assets by segment are as follows:

		December 31, 2017			December 31, 2016
		(in thousands)
Total assets
Graduate program segment		$	359,597		$	244,320
Short course segment			122,465			—
​	​	​	​	​	​	​	​
Total assets		$	482,062		$	244,320
​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​

Geographical Information

        The Company's non-U.S. revenue for the year ended December 31, 2017, determined based upon the university client's functional currency, was $10.0 million, entirely from the Short Course Segment's operations outside of the U.S. The Company did not have non-U.S. revenue for the years ended December 31, 2016 and 2015. The Company's long-lived assets in non-U.S. countries as of December 31, 2017 totaled approximately $0.7 million. The Company did not have non-U.S. long-lived assets as of December 31, 2016.

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Name:	us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration