v3.25.2
Segment Reporting and Customer Concentration
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting and Customer Concentration

3. SEGMENT REPORTING AND CUSTOMER CONCENTRATION

Segment Information. Our Chief Operating Decision Maker ("CODM") is our President and Chief Executive Officer. We have evaluated how our CODM has organized the Company for purposes of making operating decisions, preparing budgets and forecasts, setting targets, allocating resources, and assessing performance. Our CODM manages all business activities on a consolidated basis, and as a result, we have concluded that as of June 30, 2025, there is one reportable segment.

As our one segment is managed on a consolidated basis, our measure of segment profit or loss is consolidated net income. Our CODM uses consolidated net income to assess the performance of our one segment and decide how and where to allocate resources and reinvest profits into the business in areas such as research and development (“R&D”), business and/or asset acquisitions, investments in market share expansion with our existing and potential new customers, talent, technology, the repurchase of our common stock, and/or the payment of dividends. Net income, and components of net income, are used to monitor actual performance and are compared to budgeted and forecasted results to assess the performance of our one segment, set targets, and establish management’s incentive compensation. The measure of consolidated segment assets is reported on our Balance Sheets as total assets. We do not have intra-entity sales or transfers.

We regularly provide our CODM a reporting package that shows our results by functional expense, similar to our Income Statements. However, for purposes of this reporting package, depreciation is included in these functional expense categories, rather than broken out separately. Additionally, certain expenses such as restructuring and reorganization charges, executive transition costs, and acquisition-related charges, along with non-cash charges such as stock-based compensation and amortization of acquired intangibles, are excluded. The following table provides the significant expenses that are regularly provided to our CODM for our one segment, the required disclosable amounts that are included in consolidated net income, and a reconciliation to consolidated net income for the quarters and six months ended June 30, 2025 and 2024:

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

June 30, 2025

 

 

June 30, 2024

 

 

Revenue

 

$

297,128

 

 

$

290,318

 

 

$

596,581

 

 

$

585,453

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction fees

 

 

25,866

 

 

 

24,207

 

 

 

53,767

 

 

 

49,269

 

 

All other (1)

 

 

122,626

 

 

 

127,922

 

 

 

247,859

 

 

 

261,245

 

 

Total cost of revenue

 

 

148,492

 

 

 

152,129

 

 

 

301,626

 

 

 

310,514

 

 

Research and development (1)

 

 

39,622

 

 

 

37,853

 

 

 

79,438

 

 

 

73,923

 

 

Selling and marketing (1)

 

 

27,202

 

 

 

28,390

 

 

 

53,875

 

 

 

57,589

 

 

General and administrative (1)

 

 

27,340

 

 

 

25,804

 

 

 

55,695

 

 

 

52,418

 

 

Restructuring and reorganization charges (1)

 

 

4,588

 

 

 

7,099

 

 

 

11,956

 

 

 

9,097

 

 

Stock-based compensation

 

 

8,762

 

 

 

9,193

 

 

 

17,474

 

 

 

17,062

 

 

Other segment items (2)

 

 

13,793

 

 

 

2,153

 

 

 

20,499

 

 

 

2,182

 

 

Interest expense

 

 

7,399

 

 

 

7,698

 

 

 

14,597

 

 

 

15,204

 

 

Income tax provision

 

 

7,663

 

 

 

6,170

 

 

 

13,024

 

 

 

14,168

 

 

Segment net income

 

 

12,267

 

 

 

13,829

 

 

 

28,397

 

 

 

33,296

 

 

Reconciliation of profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Consolidated net income

 

$

12,267

 

 

$

13,829

 

 

$

28,397

 

 

$

33,296

 

 
(1)
These functional expense lines include depreciation expense, which is presented separately on our Income Statements.
(2)
Other segment items include acquisition-related costs (transaction-related costs, earn-out compensation, and amortization of acquired intangible assets), executive transition costs, interest income, loss on extinguishment of debt, and foreign currency gains/losses.

Depreciation expense and interest income are separately disclosed on our Income Statements. Amortization expense is separately disclosed on our Statements of Cash Flows and is discussed in Note 4.