RTB Digital, Inc. Segments Disclosure
15. Segment Reporting
The Company reports its segments to reflect the manner in which its CODM reviews and assesses performance. The Company’s CODM is its CEO. The primary financial measures used by the CODM to evaluate the performance of its segments and allocate resources to them are revenue and gross profit.
The Company has two reportable segments: North America and International. The CODM uses segment revenue and gross profit for each segment during the annual budgeting and forecasting process. Further, the CODM uses segment revenue and gross profit as the metrics to assess the business trajectory of each segment on a quarterly basis, and to make investment decisions and allocate operating resources to each segment. The CODM does not evaluate performance or allocate resources based on segment asset data. Assets are reviewed on a consolidated basis. As such, segment asset data is not provided.
The following tables present revenue and gross profit information for each of our reportable segments (dollars in thousands):
| Year Ended December 31, 2024 | ||||||||||||
| North America | International | Total | ||||||||||
| Revenue | $ | 18,159 | $ | 37,839 | $ | 55,998 | ||||||
| Cost of revenue | 10,766 | 22,806 | 33,572 | |||||||||
| Segment gross profit | $ | 7,393 | $ | 15,033 | $ | 22,426 | ||||||
| Depreciation and amortization | $ | 2,011 | $ | 253 | $ | 2,264 | ||||||
| Year Ended December 31, 2023 | ||||||||||||
| North America | International | Total | ||||||||||
| Revenue | $ | 48,938 | $ | 16,931 | $ | 65,869 | ||||||
| Cost of revenue | 29,742 | 10,415 | 40,157 | |||||||||
| Segment gross profit | $ | 19,196 | $ | 6,516 | $ | 25,712 | ||||||
| Depreciation and amortization | $ | 1,907 | $ | 646 | $ | 2,553 | ||||||
The following table provides a reconciliation of total segment gross profit to the Company’s loss before provision for income taxes (in thousands):
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Total segment gross profit | $ | 22,426 | $ | 25,712 | ||||
| Less: Advertising and marketing | 95 | 80 | ||||||
| Less: Research and development | 3,848 | 5,757 | ||||||
| Less: General and administrative | 6,933 | 8,678 | ||||||
| Less: Payroll and payroll taxes | 13,837 | 12,017 | ||||||
| Less: Professional fees | 4,372 | 7,076 | ||||||
| Less: Stock compensation expense | 624 | 1,853 | ||||||
| Less: Depreciation and amortization | 2,264 | 2,553 | ||||||
| Less: Impairment of goodwill | 6,675 | - | ||||||
| Less: Impairment of intangible assets | 3,028 | - | ||||||
| Less: Restructuring charges | 1,636 | - | ||||||
| Less: Other expense, net | (4,800 | ) | (40,510 | ) | ||||
| Loss before provision for income taxes | $ | (25,686 | ) | $ | (52,812 | ) | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 28, 2025 | Showing above |
| 2023 | Mar 26, 2024 | |
| 2022 | Apr 17, 2023 | |
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.