The Company has two reportable segments: the Graduate Program Segment and the Alternative Credential Segment (formerly known as the Short Course Segment). The Company’s reportable segments are determined based on (i) financial information reviewed by the chief operating decision maker, the Chief Executive Officer (“CEO”), (ii) internal management and related reporting structure, and (iii) the basis upon which the CEO makes resource allocation decisions. The Company’s segments did not change as a result of the acquisition of Trilogy. The Company’s Graduate Program Segment includes the technology and services provided to nonprofit colleges and universities to enable the online delivery of degree programs. The Company’s Alternative Credential Segment includes the premium online short courses and technical skills-based boot provided through relationships with nonprofit colleges and universities.

For the year ended December 31, 2019, one university client accounted for 10% or more of the Company’s consolidated revenue, with $83.5 million, or approximately 15% of the Company’s consolidated revenue. For the year ended December 31, 2018, three university clients each accounted for 10% or more of the Company’s consolidated revenue, as follows: $86.9 million, $54.2 million and $42.7 million, which equaled 21%, 13% and 10% of the Company’s consolidated revenue, respectively. For the year ended December 31, 2017, four university clients 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 equaled 27%, 17%, 11% and 10% of the Company’s consolidated revenue, respectively.

As of December 31, 2019, two university clients each accounted for 10% or more of the Company’s consolidated accounts receivable, net balance, as follows: $6.1 million and $4.9 million, which equaled 18% and 15% of the Company’s consolidated accounts receivable, net balance, respectively. As of December 31, 2018, two university clients each accounted for 10% or more of the Company’s consolidated accounts receivable, net balance, as follows: $11.9 million and $11.8 million, which equaled 36% and 36% of the Company’s consolidated accounts receivable, net balance, respectively.

For the year ended December 31, 2019, 2018 and 2017, there were no customers or individual university clients that had revenue associated with it that accounted for 10% or more of the Company’s consolidated revenue. In addition, as of December 31, 2019 and December 31, 2018, no customers had accounts receivable, net balances that accounted for 10% or more of the Company’s consolidated accounts receivable, net balance, as customers are individual students or third parties paying on their behalf, rather than university clients.

For the year ended December 31, 2019, offerings associated with one university client accounted for 10% or more of the segment’s revenue, with $33.9 million, or approximately 22% of the segment’s revenue. For the year ended December 31, 2018, offerings associated with three university clients each accounted for 10% or more of the segment’s revenue, and when combined, accounted for approximately 81% of the segment’s revenue. For the year ended December 31, 2017, offerings associated with three university clients each accounted for 10% or more of the segment’s revenue, and when combined, accounted for approximately 82% of the segment’s revenue.



	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Revenue by segment*
Graduate Program Segment	$	417,206		$	348,361		$	270,432
Alternative Credential Segment	157,465			63,408			16,320
Total revenue	$	574,671		$	411,769		$	286,752

Segment profitability**
Graduate Program Segment	$	5,770		$	16,839		$	13,022
Alternative Credential Segment	(29,716		)	816			(1,606		)
Total segment profitability	$	(23,946	)	$	17,655		$	11,416

Segment profitability margin***
Graduate Program Segment	1.4		%	4.8		%	4.8		%
Alternative Credential Segment	(18.9		)	1.3			(9.8		)
Total segment profitability margin	(4.2		)%	4.3		%	3.9		%



	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Net loss	$	(235,222	)	$	(38,330	)	$	(29,423	)
Adjustments:
Interest income	(5,800		)	(5,173		)	(371		)
Interest expense	13,419			108			87
Foreign currency loss	707			1,722			866
Income tax benefit	(19,860		)	(4,867		)	(1,297		)
Depreciation and amortization expense	69,843			32,785			19,624
Deferred revenue fair value adjustment	11,175			—			—
Transaction costs	4,786			—			—
Integration costs	3,255			—			—
Restructuring-related costs	10,826			—			—
Shareholder activism costs	1,042			—			—
Impairment charge	70,379			—			—
Stock-based compensation expense	51,504			31,410			21,930
Total adjustments	211,276			55,985			40,839
Total segment profitability	$	(23,946	)	$	17,655		$	11,416



	December 31, 2019		December 31, 2018
	(in thousands)
Total assets
Graduate Program Segment	$	507,187	$	702,827
Alternative Credential Segment	679,643		104,527
Total assets	$	1,186,830	$	807,354



	December 31, 2019		December 31, 2018
	(in thousands)
Trade accounts receivable
Graduate Program Segment accounts receivable, net of allowance for doubtful accounts of $0 for all periods presented	$	3,454	$	31,110
Graduate Program Segment unbilled revenue	12,123		265
Alternative Credential Segment accounts receivable, net of allowance for doubtful accounts of $1.3 million and $257 thousand as of December 31, 2019 and 2018, respectively	12,436		982
Alternative Credential Segment unbilled accounts receivable	5,642		—
Total trade accounts receivable	$	33,655	$	32,357

Contract liabilities
Graduate Program Segment deferred revenue	$	2,210	$	2,864
Alternative Credential Segment deferred revenue	46,623		5,481
Total contract liabilities	$	48,833	$	8,345

For the Graduate Program Segment, revenue recognized during the years ended December 31, 2019 and 2018 that was included in the deferred revenue balance at the beginning of each year was $2.4 million and $2.5 million, respectively. For the Alternative Credential Segment, revenue recognized during the years ended December 31, 2019 and 2018 that was included in the deferred revenue balance at the beginning of the year was $5.4 million and $4.5 million, respectively.

The Graduate Program Segment had $0.5 million and $0.3 million of net capitalized contract acquisition costs capitalized primarily within university payments and other assets, non-current on the consolidated balance sheets as of December 31, 2019 and 2018, respectively. For the year ended December 31, 2019, the Company capitalized $0.2 million and recorded an immaterial amount of amortization expense in the Graduate Program Segment.

The Company’s non-U.S. revenue is based on the currency of the country in which the university client primarily operates. The Company’s non-U.S. revenue was $40.8 million, $33.9 million and $10.0 million for the years ended December 31, 2019, 2018 and 2017, respectively, substantially all of which was sourced from the Alternative Credential Segment’s operations outside of the U.S. The Company’s long-lived tangible assets in non-U.S. countries as of December 31, 2019 and 2018 totaled approximately $2.7 million and $1.2 million, respectively.