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 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 camps provided through relationships with nonprofit colleges and universities.

For the three months ended March 31, 2020, one university client accounted for 10% or more of the Company’s consolidated revenue, with $17.5 million, or approximately 10% of the Company’s consolidated revenue. For the three months ended March 31, 2019, three university clients each accounted for 10% or more of the Company’s consolidated revenue, as follows: $22.6 million, $12.9 million and $12.7 million, or approximately 18%, 11% and 10% of the Company’s consolidated revenue, respectively.

As of March 31, 2020, one university client accounted for 10% or more of the Company’s consolidated accounts receivable, net balance, with $8.7 million, or approximately 11% of the Company’s consolidated accounts receivable, net balance. 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, or approximately 18% and 15% of the Company’s consolidated accounts receivable, net balance, respectively.

For the three months ended March 31, 2020 and 2019, there were no customers or individual university clients that had associated offerings that accounted for 10% or more of the Company’s consolidated revenue. In addition, as of March 31, 2020 and December 31, 2019, 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 three months ended March 31, 2020, offerings associated with one university client accounted for 10% or more of the segment’s revenue, with $7.9 million, or approximately 14% of the segment’s revenue. For the three months ended March 31, 2019, offerings associated with four university clients each accounted for 10% or more of the segment’s revenue, and when combined, accounted for approximately 88% of the segment’s revenue.

The following table presents financial information regarding each of the Company’s reportable segment’s results of operations for each of the periods indicated.



	Three Months Ended March 31,
	2020			2019
	(dollars in thousands)
Revenue by segment*
Graduate Program Segment	$	118,457		$	104,174
Alternative Credential Segment	57,022			18,060
Total revenue	$	175,479		$	122,234

Segment profitability**
Graduate Program Segment	$	6,460		$	710
Alternative Credential Segment	(10,764		)	(3,916		)
Total segment profitability	$	(4,304	)	$	(3,206	)

Segment profitability margin***
Graduate Program Segment	5.5		%	0.7		%
Alternative Credential Segment	(18.9		)	(21.7		)
Total segment profitability margin	(2.5		)%	(2.6		)%



	Three Months Ended March 31,
	2020			2019
	(in thousands)
Net loss	$	(60,106	)	$	(21,554	)
Adjustments:
Interest expense (income), net	4,980			(2,294		)
Foreign currency loss	2,271			370
Income tax benefit	(1,055		)	(941		)
Depreciation and amortization expense	23,485			9,698
Transaction and integration costs	724			1,931
Restructuring-related costs	288			—
Stockholder activism costs	4,239			—
Stock-based compensation expense	20,870			9,584
Total adjustments	55,802			18,348
Total segment profitability	$	(4,304	)	$	(3,206	)



	March 31, 2020		December 31, 2019
	(in thousands)
Total assets
Graduate Program Segment	$	516,021	$	507,187
Alternative Credential Segment	665,940		679,643
Total assets	$	1,181,961	$	1,186,830



	March 31, 2020			December 31, 2019
	(in thousands)
Trade accounts receivable
Graduate Program Segment accounts receivable	$	28,161		$	3,454
Graduate Program Segment unbilled revenue*	25,035			12,123
Alternative Credential Segment accounts receivable	24,146			19,408
Provision for credit losses	(1,931		)	(1,330		)
Total trade accounts receivable	$	75,411		$	33,655

Contract liabilities
Graduate Program Segment deferred revenue	$	16,839		$	2,210
Alternative Credential Segment deferred revenue	52,983			46,623
Total contract liabilities	$	69,822		$	48,833

For the Graduate Program Segment, revenue recognized during the three months ended March 31, 2020 and 2019 that was included in the deferred revenue balance at the beginning of each year was $2.2 million and $2.4 million, respectively.

For the Alternative Credential Segment, revenue recognized during the three months ended March 31, 2020 and 2019 that was included in the deferred revenue balance at the beginning of each year was $34.4 million and $5.4 million, respectively.

The Graduate Program Segment had $0.5 million and $0.5 million of net capitalized contract acquisition costs recorded primarily within university payments and other assets, non-current on the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019, respectively.

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 $11.3 million and $7.7 million, for the three months ended March 31, 2020 and 2019, 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 March 31, 2020 and December 31, 2019 totaled $2.0 million and $2.7 million, respectively.