Paymentus Holdings, Inc. Segments Disclosure
11. Segment Reporting
The Company conducts business in three operating segments based on geography. Based on quantitative criteria, it identifies the United States of America (“USA”) as its sole reporting segment. The USA segment is the primary driver of the Company’s consolidated revenues and represents the majority of its total consolidated assets. "Other" includes operations in Canada and India. The accounting policies of the segment are the same as those described in Note 2.
The table below summarizes segment Gross Profit, including Revenue and Cost of sales (in thousands):
|
Year Ended December 31, |
|
|||||||
|
2024 |
|
2023 |
|
2022 |
|
|||
Revenue |
|
|
|
|
|
|
|||
USA |
$ |
856,374 |
|
$ |
603,120 |
|
$ |
487,084 |
|
Other |
|
15,371 |
|
|
11,370 |
|
|
9,917 |
|
Total Revenue |
$ |
871,745 |
|
$ |
614,490 |
|
$ |
497,001 |
|
|
|
|
|
|
|
|
|||
Cost of revenue |
|
|
|
|
|
|
|||
USA |
$ |
625,405 |
|
$ |
426,488 |
|
$ |
342,275 |
|
Other |
|
8,170 |
|
|
5,660 |
|
|
5,048 |
|
Total Cost of revenue |
$ |
633,575 |
|
$ |
432,148 |
|
$ |
347,323 |
|
|
|
|
|
|
|
|
|||
Gross profit |
|
|
|
|
|
|
|||
USA |
$ |
230,969 |
|
$ |
176,632 |
|
$ |
144,809 |
|
Other |
|
7,201 |
|
|
5,710 |
|
|
4,869 |
|
Total Gross profit(1) |
$ |
238,170 |
|
$ |
182,342 |
|
$ |
149,678 |
|
(1) Total Gross profit to income before income taxes is reconciled in the Consolidated Statements of Operations and Comprehensive Income (Loss).
The CODM is provided with consolidated information on other operating expenses including sales and marketing, research and development, general and administrative expenses, as well as interest income and other expenses. There are no other significant expense categories regularly provided to the CODM beyond those disclosed in the Consolidated Statements of Operations. There are no intra-entity sales or transfers. The CODM manages the business using consolidated expense information, as well as regularly provided budgeted or forecasted revenue, cost of revenue and operating expenses information on a consolidated basis. Assets provided to the CODM are consistent with those reported on the Consolidated
Balance Sheets with particular emphasis on the Company’s available liquidity, including its cash, cash equivalents and restricted cash and accounts receivable and reduced by current liabilities.
The Company's long lived assets primarily consist of computer equipment and furniture. The table below summarizes long-lived assets based on its geographical area:
|
December 31, |
|
December 31, |
|
||
|
2024 |
|
2023 |
|
||
|
(in thousands) |
|
||||
USA |
$ |
450 |
|
$ |
558 |
|
Other |
|
707 |
|
|
1,000 |
|
Total |
$ |
1,157 |
|
$ |
1,558 |
|
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.