| Schedule of significant expense categories and measures of segment income |
| | | | | | | | | | | | | For the three months ended June 30, | | For the six months ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | (unaudited) | | (unaudited) | Total Revenues | $ | 203,970 | | $ | 184,559 | | $ | 400,616 | | $ | 361,621 | Less: | | | | | | | | | | | | Cost of revenues – software subscriptions | | 52,170 | | | 44,459 | | | 103,346 | | | 88,704 | Cost of revenues – services | | 20,500 | | | 18,900 | | | 41,101 | | | 38,723 | Research & development | | 24,805 | | | 20,582 | | | 49,355 | | | 41,468 | Selling & marketing | | 51,899 | | | 48,454 | | | 104,534 | | | 96,609 | General & administrative | | 51,142 | | | 43,392 | | | 105,481 | | | 88,420 | Depreciation & amortization | | 6,720 | | | 6,187 | | | 13,162 | | | 12,067 | Change in fair value of acquisition contingent earn-outs | | (100) | | | 2,300 | | | (5,838) | | | (12,400) | Other segment items (1) | | 1,277 | | | 4,149 | | | 4,524 | | | 7,408 | Interest income, net | | (344) | | | (1,228) | | | (1,301) | | | (2,767) | Income tax benefit | | (13,142) | | | (1,675) | | | (20,281) | | | (6,780) | Net income (loss) (GAAP) | $ | 9,043 | | $ | (961) | | $ | 6,533 | | $ | 10,169 | Adjustments: | | | | | | | | | | | | Interest income, net | | (344) | | | (1,228) | | | (1,301) | | | (2,767) | Income tax benefit | | (13,142) | | | (1,675) | | | (20,281) | | | (6,780) | Depreciation and amortization – property and equipment | | 6,720 | | | 6,187 | | | 13,162 | | | 12,067 | Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues | | 21,882 | | | 16,670 | | | 41,968 | | | 32,525 | Amortization of acquired intangible assets – selling and marketing expense | | 522 | | | 571 | | | 1,047 | | | 1,102 | Amortization of cloud computing implementation costs – general and administrative expense | | 1,358 | | | 1,018 | | | 2,395 | | | 2,024 | Stock-based compensation expense | | 13,762 | | | 11,990 | | | 32,270 | | | 33,034 | Severance expense (2) | | 2,689 | | | 317 | | | 10,097 | | | 774 | Acquisition contingent consideration | | — | | | 200 | | | — | | | 200 | Change in fair value of acquisition contingent earn-outs | | (100) | | | 2,300 | | | (5,838) | | | (12,400) | Acquisition-related retained employee compensation(3) | | 1,250 | | | — | | | 1,667 | | | — | Transaction costs (4) | | 7,375 | | | 2,980 | | | 13,359 | | | 5,640 | Adjusted EBITDA (Non-GAAP) | $ | 51,015 | | $ | 38,369 | | $ | 95,078 | | $ | 75,588 | (1) Other segment items include professional fees, contracted labor, transaction costs, acquisition related earn-out adjustments and foreign currency exchange gains (losses). | (2) The three and six months ended June 30, 2026 include $1,713 and $7,883, respectively, in severance costs related to the Value Creation Plan. For further information, refer to Note 15, “Restructuring” to the condensed consolidated financial statements. | (3) The acquisition-related compensation expenses recorded for the three and six months ended June 30, 2026 are related to the Additional Cash Consideration obligation associated with the acquisition of Brinta. For further information, refer to Note 3, “Acquisitions” to the condensed consolidated financial statements. | (4)The three and six months ended June 30, 2026 periods include $6,250 and $8,800, respectively, in costs incurred to support the execution of our Value Creation Plan. For further information, refer to Note 15, “ Restructuring” to the condensed consolidated financial statements. Amounts also 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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