v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Our Chief Executive Officer, as the Chief Operating Decision Maker, or CODM, organizes our company, manages resource allocations, and measures performance on the basis of one operating segment on a consolidated basis. The accounting policies of our operating segment are the same as those described in Note 2, Summary of Significant Accounting Policies. The CODM assesses performance for the segment and decides how to allocate resources based on net income (loss) that also is reported on the accompanying condensed consolidated statements of operations as consolidated net income (loss). The measure of segment assets is reported on the accompanying condensed consolidated balance sheets as total assets.
The CODM uses net income (loss) to evaluate income generated from segment assets in making key operating and segment resource allocation decisions, such as investments in new product development. Net income (loss) is also used to monitor budget versus actual results.
The Company has one reportable segment which provides an online platform for business formation in the United States, or U.S., and, as described in Note 2, Summary of Significant Accounting Policies, generates revenue from customized legal document services and subscriptions offered to our customers. Revenue outside of the U.S., based on the location of the customer, represented less than 1% of our unaudited consolidated revenue for the three months ended March 31, 2025 and 2024. Our property and equipment and ROU assets located outside of the U.S. were immaterial as of March 31, 2025 and 2024.

The following table summarizes financial information by reportable segment regularly provided to the CODM (in thousands):
Three Months Ended March 31,
20252024
Transaction revenue$66,853 $66,317 
Subscription revenue116,257 107,897 
Total revenue183,110 174,214 
Less:
Filings fees25,219 24,813 
Other cost of revenue, excluding depreciation, amortization and stock-based compensation34,966 37,511 
Customer acquisition marketing44,215 40,563 
Other sales and marketing, excluding depreciation, amortization and stock-based compensation11,681 10,812 
Technology and development, excluding depreciation, amortization and stock-based compensation15,078 16,777 
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring16,482 15,836 
Stock-based compensation29,756 14,856 
Depreciation and amortization10,406 7,670 
Interest income(1,483)(2,887)
Interest expense182 61 
Restructuring(1)
678 321 
Other segment items(2)
(347)(93)
Provision for income taxes5,487 3,230 
Gain on sale of assets held for sale(14,337)— 
Segment net income5,127 4,744 
Reconciliation of profit or loss
Adjustments and reconciling items$— $— 
Consolidated net income$5,127 $4,744 
(1) For 2025 and 2024, restructuring costs related to the reduction of our U.S. headcount.
(2) Other segment items included in segment net income primarily consist of foreign currency gains or losses related to our intercompany loans which were denominated in British Pound Sterling, or GBP, and included in other income, net on the consolidated statements of operations.