Revenues and Deferred Costs |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues and Deferred Costs | Revenues and Deferred Costs The following table disaggregates the Company's revenue by major source for the three months ended March 31, 2025 and 2024:
The Company recognized approximately $3.7 million of revenue during the three months ended March 31, 2025 that was included in deferred revenues in the accompanying condensed consolidated balance sheets as of the beginning of the reporting period. For those contracts that were wholly or partially unsatisfied as of March 31, 2025, the Company’s remaining performance obligation totaled approximately $1.6 billion, which includes $0.2 billion for MANTL. The Company expects to recognize approximately 49.1% of these remaining obligations as revenue over the next 24 months, an additional 34.6% in the next 25 to 48 months, and the remaining balance thereafter. This estimate does not include estimated consideration for excess user and transaction processing fees that the Company expects to earn under its subscription contracts. Contract assets totaled $2.4 million, including $0.6 million related to MANTL, and $1.9 million as of March 31, 2025 and December 31, 2024, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets. Deferred Cost Recognition The Company capitalized $1.0 million and $1.2 million in deferred commissions costs during the three months ended March 31, 2025 and 2024 respectively, and recognized amortization of $1.5 million and $1.2 million during the three months ended March 31, 2025 and 2024, respectively. Amortization expense is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. Deferred commissions are considered costs to obtain a contract and are included in deferred costs in the accompanying condensed consolidated balance sheets in the amount of $25.4 million and $25.9 million as of March 31, 2025 and December 31, 2024, respectively. The Company capitalized implementation costs of $2.5 million and $2.9 million during the three months ended March 31, 2025, and 2024, respectively, and recognized amortization of $1.4 million for both the three months ended March 31, 2025 and 2024. Amortization expense is included in cost of revenues in the accompanying condensed consolidated statements of operations. These deferred costs are considered costs to fulfill client contracts and are included in deferred costs in the accompanying condensed consolidated balance sheets in the amount of $25.3 million and $24.5 million as of March 31, 2025 and December 31, 2024, respectively. The Company periodically reviews the carrying amount of deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. No material impairment losses were recognized in relation to these capitalized costs for the three months ended March 31, 2025 and 2024.
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