v3.25.2
SEGMENT DISCLOSURES
 6 Months Ended
Jun. 30, 2025
SEGMENT DISCLOSURES  
SEGMENT DISCLOSURES

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13.   SEGMENT DISCLOSURES

The Company operates its business as one operating segment. Operating segments are defined as components of an enterprise in which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s CODM, the Chief Executive Officer, reviews financial information regularly at the consolidated level. Net income (loss) and adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), a non-GAAP measure, are both used as metrics to evaluate performance of the business in deciding whether to reinvest profits into software development, acquisitions or into other areas of the Company. The Company believes that Adjusted EBITDA is a useful supplemental measure to evaluate overall operating performance as it measures business performance by focusing on cash related results and it is an important metric to lenders under the Company’s Credit Agreement. The most directly comparable GAAP measure to Adjusted EBITDA is net income (loss).

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The CODM monitors consolidated forecasted versus actual net income (loss) and Adjusted EBITDA results for the purpose of determining the general health of the Company and assessing the performance of the Company as compared to management’s expectations.

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The following significant expense categories and measures of segment income (loss) are regularly reported to the CODM for the Company’s single segment:

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For the three months ended June 30,

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For the six months ended June 30,

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2025

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2024

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2025

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2024

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(unaudited)

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(unaudited)

Total Revenues

$

184,559

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$

161,104

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$

361,621

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$

317,885

Less:

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Cost of revenues – software subscriptions

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44,459

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42,261

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88,704

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87,389

Cost of revenues – services

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18,900

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16,155

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38,723

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32,016

Research & development

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20,582

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14,614

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41,468

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31,459

Selling & marketing

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48,454

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40,541

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96,609

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81,032

General & administrative

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43,392

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35,874

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88,420

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71,416

Depreciation & amortization

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6,187

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5,212

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12,067

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10,218

Change in fair value of acquisition contingent earn-outs

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2,300

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—

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(12,400)

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—

Other segment items (1)

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4,149

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(1,098)

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7,408

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(1,625)

Interest (income) expense, net

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(1,228)

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181

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(2,767)

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467

Income tax expense (benefit)

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(1,675)

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2,200

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(6,780)

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(2,335)

Net income (loss) (GAAP)

$

(961)

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$

5,164

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$

10,169

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$

7,848

Adjustments:

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Interest expense (income), net

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(1,228)

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181

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(2,767)

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467

Income tax expense (benefit)

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(1,675)

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2,200

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(6,780)

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(2,335)

Depreciation and amortization – property and equipment

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6,187

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5,212

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12,067

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10,218

Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues

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16,670

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14,578

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32,525

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29,925

Amortization of acquired intangible assets – selling and marketing expense

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571

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592

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1,102

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1,187

Amortization of cloud computing implementation costs – general and administrative

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1,018

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995

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2,024

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1,989

Stock-based compensation expense

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11,990

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10,001

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33,034

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26,325

Severance expense

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317

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619

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774

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1,461

Acquisition contingent consideration

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200

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(1,575)

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200

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(2,375)

Change in fair value of acquisition contingent earn-outs

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2,300

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(12,400)

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Transaction costs (2)

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2,980

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548

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5,640

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548

Adjusted EBITDA (Non-GAAP)

$

38,369

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$

38,515

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$

75,588

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$

75,258

(1) Other segment items include professional fees, contracted labor, transaction costs, acquisition related earn-out adjustments and foreign currency exchange gains (losses).

(2) The current year periods include legal expenses associated with pending litigation related to claims the Company has made against a competitor. For further information, refer to Note 12, “Commitments and Contingencies” to the condensed consolidated financial statements.

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Additionally, the Company considers stock-based compensation expense a significant expense category. For further information, refer to Note 11, “Stock Based Award Plans.”

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As the Company operates solely within one segment, total assets, property and equipment, net, and capitalized software, net are reported at the consolidated level on the condensed consolidated balance sheets. The Company’s assets include both current and long-lived assets, and corporate assets. As of June 30, 2025 and December 31, 2024, $1,177 and $687, respectively, of the Company’s property and equipment assets were held outside of the U.S.

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Depreciation and amortization, property and equipment additions, and capital software additions are reported at the consolidated level on the condensed consolidated statements of cash flows.

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The Company disaggregates revenue from contracts with customers based on geographical regions, timing of revenue recognition, and the major product and service types. For both the three and six months ended June 30, 2025 and 2024, approximately 9% and 7%, respectively, of the Company’s revenues were generated outside of the U.S. None of the Company’s customers represented more than 10% of total revenues for the three or six months ended June 30, 2025 or 2024. For further information including disaggregation of revenues, refer to Note 2, “Revenue Recognition.”