v3.25.1
Other Financial Statement Information
 3 Months Ended
Mar. 31, 2025
Other Financial Information [Abstract]  
Other Financial Statement Information Other Financial Statement Information
Accounts Receivable
Changes in the allowances consisted of the following (in thousands):
Three Months Ended March 31,
20252024
Beginning balance$2,121 $4,906 
Add: amounts recognized as a reduction of revenue1,236 1,545 
Add (less): allowance for credit losses recognized in general and administrative expense
40 (154)
Less: write-offs, net of recoveries(773)(2,864)
Ending balance$2,624 $3,433 
The allowance recognized as a reduction of revenue primarily relates to our installment plan receivables for which we expect we will not be entitled to a portion of the transaction price based on our historical experience with similar transactions. The allowance recognized against general and administrative expense represents an allowance relating to receivables from partners that are no longer considered collectible.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
March 31, 2025December 31, 2024
Prepaid expenses$11,135 $9,129 
Deferred cost of revenue3,789 1,670 
Capitalized cloud computing development costs1,557 1,599 
Income tax receivable1,542 3,701 
Other current assets2,414 1,827 
Total prepaid expenses and other current assets$20,437 $17,926 
Goodwill
The following table presents the changes in the carrying amount of goodwill (in thousands):
Amount
Balance as of December 31, 2024
$63,318 
Acquisition(1)
77,813 
Balance as of March 31, 2025
$141,131 
(1) Amounts relate to the acquisition of Formation Nation, Inc., or Formation Nation. Refer to Note 5. Acquisition to our condensed consolidated financial statements.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
March 31, 2025December 31, 2024
Accrued payroll and related expenses$19,652 $27,518 
Accrued vendor payables22,719 15,895 
Accrued advertising692 1,636 
Sales allowances3,079 3,086 
Accrued sales, use and business taxes9,107 6,984 
Deferred consideration relating to business acquired12,957 — 
Other4,241 2,809 
Total accrued expenses and other current liabilities$72,447 $57,928 
Deferred revenue
Deferred revenue as of March 31, 2025 and December 31, 2024 was $211.4 million and $175.0 million, respectively. Revenue recognized in the three months ended March 31, 2025 and 2024 that was included in deferred revenue as of December 31, 2024 and 2023 was $85.4 million and $84.1 million, respectively.
We have omitted disclosure on the transaction price allocated to remaining performance obligations and the estimated timing of revenue recognition, as our contracts with customers that have a duration of more than one year are immaterial.
Depreciation and Amortization
Depreciation and amortization expense of our property and equipment, including capitalized internal-use software, and intangible assets consisted of the following (in thousands):
Three Months Ended March 31,
20252024
Cost of revenue$5,115 $4,467 
Sales and marketing1,715 799 
Technology and development2,220 1,477 
General and administrative1,356 927 
Total depreciation and amortization expense$10,406 $7,670