Cover - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Mar. 06, 2025 |
Jun. 28, 2024 |
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| Cover [Abstract] | |||
| Document Type | 10-K | ||
| Document Annual Report | true | ||
| Document Period End Date | Dec. 31, 2024 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Document Transition Report | false | ||
| Entity File Number | 001-40680 | ||
| Entity Registrant Name | MeridianLink, Inc. | ||
| Entity Incorporation, State or Country Code | DE | ||
| Entity Tax Identification Number | 82-4844620 | ||
| Entity Address, Address Line One | 3560 Hyland Avenue | ||
| Entity Address, Address Line Two | Suite 200 | ||
| Entity Address, City or Town | Costa Mesa | ||
| Entity Address, State or Province | CA | ||
| Entity Address, Postal Zip Code | 92626 | ||
| City Area Code | 714 | ||
| Local Phone Number | 708-6950 | ||
| Title of 12(b) Security | Common stock, par value $0.001 per share | ||
| Trading Symbol | MLNK | ||
| Security Exchange Name | NYSE | ||
| Entity Well-known Seasoned Issuer | No | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Interactive Data Current | Yes | ||
| Entity Filer Category | Accelerated Filer | ||
| Entity Small Business | false | ||
| Entity Emerging Growth Company | true | ||
| Entity Ex Transition Period | false | ||
| ICFR Auditor Attestation Flag | false | ||
| Document Financial Statement Error Correction [Flag] | false | ||
| Entity Shell Company | false | ||
| Entity Public Float | $ 562.4 | ||
| Entity Common Stock, Shares Outstanding | 76,626,179 | ||
| Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain information required by Part III of this Annual Report on Form 10-K, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the annual meeting of stockholders to be held in 2025, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the registrant’s definitive proxy statement shall not be deemed to be filed as part hereof.
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| Document Fiscal Year Focus | 2024 | ||
| Document Fiscal Period Focus | FY | ||
| Amendment Flag | false | ||
| Entity Central Index Key | 0001834494 |
Audit Information |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Audit Information [Abstract] | |
| Auditor Firm ID | 243 |
| Auditor Name | BDO USA, P.C. |
| Auditor Location | San Francisco, California |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
| Preferred stock, shares issued (in shares) | 0 | 0 |
| Preferred stock, shares outstanding (in shares) | 0 | 0 |
| Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
| Common stock, shares issued (in shares) | 76,049,681 | 78,447,701 |
| Common stock, shares outstanding (in shares) | 76,049,681 | 78,447,701 |
Organization and Description of Business |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Organization and Description of Business | Organization and Description of Business MeridianLink, Inc., and its wholly-owned subsidiaries, (collectively the “Company”), provides secure, cloud-based digital solutions that transform the ways in which traditional and emerging financial services providers engage with account holders and end users. The Company sells its solutions to financial institutions, including banks, credit unions, mortgage lenders, specialty lending providers, and consumer reporting agencies. The Company delivers its solutions to the substantial majority of its customers using a software-as-a-service (“SaaS”) model under which its customers pay subscription fees for the use of the Company’s solutions. The Company is headquartered in Costa Mesa, California.
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Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements of the Company have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. Certain amounts within the prior periods’ consolidated statements of cash flows have been revised to conform to the current period presentation. Depreciation, amortization of intangible assets, and amortization of costs capitalized to obtain revenue contracts were revised to be shown separately as adjustments to reconcile net (loss) income to net cash provided by operating activities. The revisions had no impact on the net cash provided by operating activities and did not change other amounts reported within the consolidated balance sheets, statements of operations, or statements of stockholders’ equity. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amounts of revenues and expenses. Certain items subject to such estimates include the fair value of acquired intangible assets; the capitalization of software development costs; the useful lives of long-lived intangible assets; impairment of goodwill and long-lived assets; and income taxes, including the valuation allowance for deferred income taxes. In accordance with GAAP, management bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from those estimates. Accounting policies that most significantly impact the presented amounts within these consolidated financial statements are further described below: Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents are invested in short-term and highly liquid investment-grade obligations, which are held in safekeeping by large and creditworthy financial institutions. Deposits in these financial institutions may exceed federally insured limits. As of December 31, 2024 and 2023, the Company did not have any customers that accounted for greater than 10% of accounts receivable. For the years ended December 31, 2024, 2023, and 2022, the Company did not have any customers that accounted for greater than 10% of net revenues. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity date of three months or less to be cash equivalents. As of December 31, 2024, and 2023, cash consisted of checking deposit accounts and demand deposit accounts. As of December 31, 2023, cash equivalents included $66.8 million held in a money market fund, and none as of December 31, 2024. Accounts Receivable and Allowance for Credit Losses The Company’s accounts receivable includes billed and unbilled receivables, net of an allowance for credit losses. Trade accounts receivable are recorded at invoiced amounts and do not bear interest. The Company recognizes an allowance for credit losses on accounts receivable in an amount equal to the current expected credit losses. The estimation of the allowance is based on an analysis of historical loss experience, current receivables aging, and management’s assessment of current conditions and estimated future conditions, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The Company assesses collectability by pooling receivables where similar characteristics exist and evaluates receivables individually when specific customer balances no longer share those risk characteristics and are considered at risk or uncollectible. The expense associated with the allowance for expected credit losses is recognized in general and administrative expenses on the accompanying consolidated statements of operations. Property and Equipment The Company records property and equipment at cost or fair market value on the acquisition date, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:
Expenditures for maintenance and repairs are charged to expense as incurred, and major renewals and improvements are capitalized. Gains or losses on disposal of property and equipment are recognized in the period when the assets are sold or disposed of and the related cost and accumulated depreciation is removed from the accounts. Leases Leases arise from contractual obligations that convey the right to control the use of identified property or equipment for a period of time in exchange for consideration. At the inception of the contract, the Company determines if an arrangement contains a lease based on whether there is an identified asset and whether the Company controls the use of the identified asset. The Company also determines the classification of that lease, between financing and operating, at the lease commencement date. The Company accounts for and allocates consideration to the lease and non-lease components as a single lease component. The Company does not have any financing leases. A right-of-use (“ROU”) asset represents the Company’s right to use an underlying asset, and a lease liability represents the Company’s obligation to make payments during the lease term. ROU assets are recorded and recognized at commencement for the lease liability amount, adjusted for initial direct costs incurred and lease incentives received, and adjusted for prepaid or accrued lease payments. Lease liabilities are recorded at the present value of the future lease payments over the lease term at commencement. The discount rate used to determine the present value is the incremental borrowing rate, unless the interest rate implicit in the lease is readily determinable. As the implicit rate for the operating leases is generally not determinable, the Company uses an incremental borrowing rate as the discount rate at the lease commencement date to determine the present value of lease payments. The Company determines the discount rate of the leases by considering various factors, such as the credit rating, interest rates of similar debt instruments of entities with comparable credit ratings, jurisdictions, and the lease term. The Company’s operating leases typically include non-lease components such as common-area maintenance costs, utilities, and other maintenance costs. For real estate leases, the Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company’s lease terms may include options to extend or terminate the lease. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the Company will exercise those options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company’s ROU assets are included in right of use assets and the current and non-current portions of the lease liabilities are included in accrued liabilities and other long-term liabilities, respectively, on the consolidated balance sheets. The Company does not record leases with terms of 12 months or less on the consolidated balance sheets. Lease expense is recognized on a straight-line basis over the expected lease term. The Company subleases certain unoccupied leased office space. Sublease income is recorded as a reduction of rent expense straight-line over the term of the sublease. The Company tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease. Intangible Assets Intangible assets primarily consist of developed technology, customer relationships, trademarks, and non-competition agreements, which were acquired through acquisitions. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Capitalized Internal-Use Software Costs For development costs related to internal use software, the Company capitalizes qualifying computer software development costs that are incurred during the application development stage. Once the application development stage is reached, internal and external costs are capitalized until the software is substantially complete and ready for its intended use. These capitalized costs are amortized on a straight-line basis over the expected useful life of the software of 3 years. Costs related to preliminary project activities and post-implementation activities for developed technology are expensed as incurred. Such capitalized costs related to developed technology are included within the intangible assets balance on the consolidated balance sheets. Capitalized Cloud Computing Arrangement Costs The Company capitalizes certain costs associated with cloud computing arrangements (“CCA”) that are service contracts, including third party software development costs that are part of the application development stage. Capitalized costs for cloud computing arrangements are included in prepaid expenses and other current assets, and other assets on the Company’s consolidated balance sheets. Amounts capitalized are amortized as general and administrative expenses and cost of revenues on the consolidated statements of operations over 2 to 5 years beginning on the date the associated hosting arrangement is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Impairment of Long-Lived Assets The Company evaluates the carrying value of long-lived assets, including intangible assets with finite lives, right of use assets, costs capitalized to obtain revenue contracts, and property and equipment, whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. The impairment to be recognized is measured as the amount by which the carrying amount exceeds the fair value of the assets. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is tested for impairment at least annually at the reporting unit level or more frequently if events or changes in circumstances indicate that goodwill might be impaired. Events or changes in circumstances which could trigger an impairment review include consideration of certain key factors including macroeconomic conditions, industry and market conditions, management turnover, changes in regulation, litigation matters, changes in enterprise value, and overall financial performance. The Company first assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not the fair value of its reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test. The quantitative impairment test involves comparing the estimated fair value of a reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. The Company has one reporting unit and tests its goodwill for impairment annually, as of October 1, or more frequently if circumstances indicate that goodwill may not be recoverable. Fair Value of Financial Instruments The Company accounts for certain of its financial assets at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: •Level 1 – Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. •Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3 – Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The carrying amounts of most of the Company’s financial instruments, including cash and cash equivalents approximate fair value due to their high liquidity in actively quoted trading markets and their short maturities. The carrying amounts of the Company’s accounts receivable, accounts payable, accrued liabilities, and short-term deferred revenue approximate fair value due to their short maturities. The carrying value of the Company’s long-term debt is considered to approximate the fair value of such debt as of December 31, 2024, and 2023 based upon the interest rates that the Company believes it can currently obtain for similar debt, which is considered a level 2 input to determine fair value. Revenue Recognition Revenue is recognized upon the transfer of control of a promised service to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those services, net of sales taxes. The Company applies the following five-step revenue recognition model in accounting for its revenue arrangements: •Identification of the contract, or contracts, with a customer; •Identification of the performance obligations in the contract; •Determination of the transaction price; •Allocation of the transaction price to the performance obligations in the contract; and •Recognition of revenue when or as the Company satisfies the performance obligations. The Company delivers its solutions using a SaaS model under which its customers pay subscription fees for the use of the Company’s solutions as well as fees for transactions processed. The Company’s subscription fees consist of revenues from software solutions that are governed by pricing and terms contained in contracts between the Company and its customers. The initial term of contracts with customers is typically three years, but may range from to seven years. Customer contracts are typically not cancellable without penalty, and almost always contain an evergreen auto-renewal term that is often for a one-year extension after the initial term, but can extend the auto-renewal of the contract up to the length of the original term. The Company’s subscription fee revenues include annual base fees, platform partner fees, and, depending on the product, fees per search or per loan application or per closed loan (with contractual minimums based on volume) that are charged on a monthly basis, which is referred to as volume-based fees. The Company earns additional revenues based on the volume of applications or closed loans processed above its customers’ contractual minimums. Revenue-generating activities are directly related to the sale, implementation, and support of the Company’s solutions. The Company derives the majority of its revenues from subscription fees for the use of its solutions hosted using cloud-based hosting services, volume-based fees, as well as revenues for customer support and professional implementation services related to the Company’s solutions. Variable consideration exists when the amount that the Company expects to receive in a contract is based on the occurrence or non-occurrence of future events, such as processing services performed under usage-based pricing arrangements or professional services billed on a time-and-materials basis. Variable consideration included in the transaction price of a contract is constrained such that a significant revenue reversal is not probable. Under the standard terms and conditions of the Company's contracts with its customers or partners, contractual transaction price is generally not adjusted due to measurement adjustments associated with estimated variable consideration. Subscription Fee Revenues The Company’s software solutions are generally available for use as hosted application arrangements under subscription fee agreements. The Company’s software solutions consist of an obligation for the Company to provide continuous access to a technology solution that it hosts and routine customer support, both of which the Company accounts for as a stand-ready performance obligation. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the Company’s solution is made available to the customer. Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. For the majority of our customers, additional fees for monthly usage are recognized as revenue in the month when the usage amounts are determined and reported. Certain of the Company’s subscription contracts are invoiced to its customers annually, and revenue is recognized ratably over the service term. In determining whether SaaS services are distinct, we considered whether the series guidance applies to the Company’s subscription services. The Company considered various factors including that substantially all the Company’s SaaS arrangements involve the transfer of a service to the customer, which represents a performance obligation that is satisfied over time because the customer simultaneously receives and consumes the benefits of the services provided. Customer support services, forms maintenance, and subscription services are considered a series of distinct services that are accounted for as a single performance obligation, as the nature of the services are substantially the same and have the same pattern of transfer (i.e., distinct days of service). For these contracts, the Company allocates the ratable portion of the consideration to each period based on the services provided in such period. The Company has concluded that its subscription fees related to monthly usage above the levels included in the standard subscription fee relate specifically to the transfer of the service to the customer in that month and is consistent with the allocation objective when considering all the performance obligations and payment terms in the contract. Therefore, the Company generally recognizes additional usage revenues in the month when the usage amounts are determined and reported. This allocation reflects the amount the Company expects to receive for the services for the given period. The Company has a limited number of legacy customers that host and manage its solutions on-premise under term license and maintenance agreements. This type of arrangement is no longer sold and represents an immaterial amount of the Company’s subscription fee revenues. However, there is no planned sunset or end of life for these on-premise solutions. Professional Services Revenues The Company offers implementation, configuration, consulting, and training services for its software solutions and SaaS offerings. Revenues from the Company’s professional services are recognized as control is transferred to the customer, which can be either at a point in time or over time, depending on the nature of the contractual performance obligations. In determining whether implementation services are distinct from subscription services, we considered that there is not a significant level of integration between implementation and subscription services. Further, implementation services in our contracts provide benefit to the customer with other readily available resources and the implementation services generally are not interdependent with the SaaS subscription services. Therefore, implementation services are generally accounted for as a separate performance obligation, as they represent distinct services that provide benefit to the customer apart from SaaS services. Consulting and training services are generally considered a separate performance obligation as they are considered distinct services that provide a benefit to the customer on their own. Other Revenues The Company enters into referral and marketing agreements with various third parties, in which revenues for the Company are primarily generated from transactions initiated by the third parties’ customers. The Company may introduce its customers to a referral partner or offer additional services available from the referral partner via an integration with the Company’s software solutions. Other revenues are recognized in the period the services are performed, which can be either at a point in time or over time, depending on the nature of the contractual performance obligations. Identification of Performance Obligations and Determination of Transaction Price The Company enters into contracts with customers that often include multiple performance obligations, usually including multiple subscription and implementation services. For these contracts, the Company accounts for distinct individual performance obligations separately by allocating the contract’s total transaction price to each performance obligation in an amount based on the relative standalone selling price (“SSP”) of each distinct good or service in the contract. The Company’s determination of SSP for each distinct performance obligation in its contracts with its customers requires minimal judgment. Solutions are generally sold at standard prices and subscriptions are generally coterminous. Therefore, it is rare that any reallocation of transaction consideration is required. The Company’s best evidence of SSP is the observable price at which products and services are sold separately to customers, which is generally the stated contract price. Principal versus Agent The Company evaluates whether it is the principal (i.e., reports revenues on a gross basis) or agent (i.e., reports revenues on a net basis) with respect to the vendor reseller agreements pursuant to which the Company resells certain third-party solutions along with the Company’s solutions. Generally, the Company reports revenues from these types of contracts on a gross basis, meaning the amounts billed to customers are recorded as revenues and expenses incurred are recorded as cost of revenues. Where the Company is the principal, it first obtains control of the inputs to the specific service and directs their use to create the combined output. The Company’s control is evidenced by its involvement in the integration of the partners’ services with the Company’s solutions before the partners’ services are transferred to the Company’s customers and is further supported by the Company being primarily responsible to the customers, having a level of discretion in establishing pricing, and is subject to credit loss. In cases where the Company does not obtain control prior to the transfer of services, and acts as an agent, revenue is reported on a net basis, with costs being recorded as a reduction to revenues. Agent related revenue is recorded in subscription fees revenue on the Company’s consolidated statements of operations. Contract Balances and Deferred Revenue The timing of customer billing and payment relative to the start of the service period varies from contract to contract; however, the Company bills many of its customers in advance of the provision of services under its contracts, resulting in contract liabilities consisting of deferred revenue. Deferred revenue represents billings under noncancellable contracts before the related product or service is transferred to the customer. The Company records an unbilled receivable when revenue is recognized prior to invoicing. The deferred revenue balance consists of subscription and implementation fees which have been invoiced up front and are recognized as revenue only when the revenue recognition criteria are met. The Company’s subscription contracts are invoiced to its customers annually or monthly based on the underlying contractual terms, and revenue is recognized ratably over the service term. For any fees invoiced up front for contracts with a service term that extend multiple years, the portion of deferred revenue that will be recognized beyond 12 months from the date of the financial statements are classified as long-term deferred revenue. The payment terms and conditions vary by contract; however, the Company’s terms generally require payment within 30 days from the invoice date. In instances where the timing of revenue recognition differs from the timing of payment, the Company elected to apply the practical expedient to not adjust contract consideration for the effects of a significant financing component. The Company expects, at contract inception, that the period between when promised goods and services are transferred to the customer and when the customer pays for those goods and services will be one year or less. As such, the Company determined its contracts do not generally contain a significant financing component. Costs Capitalized to Obtain Revenue Contracts The Company capitalizes sales commissions and related payroll benefits related to its customer agreements because the commission charges are so closely related to the revenues from the noncancellable customer agreements that they should be recorded as an asset and charged to expense over the expected period of customer benefit. The Company capitalizes commissions for those involved in the sale of its SaaS offerings, including direct employees and their supervisors, as these are incremental to the sale. The Company begins amortization for a particular customer agreement once the revenue recognition criteria are met and amortizes those capitalized costs over the expected period of customer benefit, which the Company estimates to be three years. The Company determined the period of benefit by considering factors such as historically high renewal rates with similar customers and contracts, initial contract length, an expectation that there will still be a demand for the product at the end of its term, and the significant costs to switch to a competitor's product, all of which are governed by the estimated useful life of the technology. Current costs are included in prepaid expenses and other current assets, and non-current costs are included in other assets on the accompanying consolidated balance sheets. The Company applies a practical expedient to expense costs to obtain revenue contracts as incurred when the amortization period would have been one year or less. Research and Development Research and development expenses are comprised primarily of salaries, benefits and share-based compensation associated with the Company’s engineering, product, and quality assurance personnel. Research and development expenses also include third-party contractors and allocated overhead. Other than software development costs that qualify for capitalization, as discussed above, research and development costs are expensed as incurred. Sales and Marketing Sales and marketing expenses consist primarily of compensation and employee benefits, including share-based compensation, of sales and marketing personnel and related sales support teams, sales and partner commissions, trade show and advertising costs, and allocated overhead. Sales and marketing expenses also include amortization of costs capitalized to obtain revenue contracts, as discussed above. Marketing costs, including advertising and trade show expenses are expensed as incurred, and were $2.5 million, $1.5 million, and $1.4 million for the years ended December 31, 2024, 2023, and 2022, respectively. Share-Based Compensation The Company accounts for share-based compensation by estimating the fair value of share-based payment awards at the grant date. The Company estimates the fair value of its RSUs using the share price on the grant date and estimates the fair value of its share-based options using the Black-Scholes option-pricing model. The portion that is ultimately expected to vest is recognized as compensation expense over the requisite service period. Calculating share-based compensation expense for share-based options requires the input of assumptions, including the expected term of the share-based awards, share price volatility, risk free interest rates, and the expected dividend yield of the Company’s common stock. The assumptions used in calculating the fair value of share-based awards represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management’s judgment. The Company accounts for forfeitures when they occur. The Company has elected to recognize share-based compensation expense for service-based awards on a straight-line basis over the service vesting period. The Company recognizes compensation expense for awards subject to performance conditions using the graded attribution method over the vesting period so long as the performance measures are probable of being achieved. Debt Issuance Costs Debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company's debt. Debt issuance costs related to the Company’s term loan are netted against the Company's debt, and those related to the Company’s revolving credit facility are included in prepaid expenses and other current assets, and other assets. These amounts are amortized into interest expense over the estimated life of the debt using the effective interest method for the Company’s term loan and using the straight-line method for the Company’s revolving credit facility. The Company performs an analysis on a creditor-by-creditor basis when its debt is modified to determine if the debt instruments were substantially different. In the event of extinguishment, capitalized debt issuance costs are expensed. In the event of debt modification, lender related fees are capitalized, and third-party costs are expensed. Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. If they are not, deferred tax assets are reduced by a valuation allowance. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is subsequently determined that deferred tax assets would be more likely than not realized in the future, in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company accounts for uncertainty in income taxes recognized in its consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized which includes (a) the tax position must be evaluated to determine the likelihood that it is more likely than not of being sustained based solely on the technical merits of the position, and if so, (b) the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The benefit from income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. The Company reports tax related interest and penalties, if any, as income tax expense. There were no material interest or penalties recorded for the years ended December 31, 2024, 2023, or 2022. Net (Loss) Income Per Share Basic net (loss) income per share is computed by dividing the net loss attributable to the common stockholders by the weighted average number of common stock outstanding during the period, without the consideration for potential dilutive common stock. Diluted net (loss) income per share is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock method. Due to the net losses for the years ended December 31, 2024 and 2023, all otherwise potentially dilutive securities were antidilutive. Accordingly, basic net loss per share equaled diluted net loss per share for the years ended December 31, 2024, and 2023. Business Combinations The results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. Transaction costs associated with business combinations are expensed as incurred and are included in acquisition related costs on the consolidated statements of operations. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates, and selection of comparable companies. The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with management’s determination of the fair values of assets acquired and liabilities assumed in a business combination. During the measurement period, if new information is obtained about facts and circumstances that existed as of the acquisition date, changes in the estimated fair values of the net assets recorded may change the amount of the purchase price allocated to goodwill. During the measurement period, which expires one year from the acquisition date, changes to any purchase price allocations that are material to the Company’s consolidated financial results will be adjusted prospectively. Accounting Pronouncements Recently Adopted The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) and has elected to use the extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies. ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” Accounting standard update (“ASU”) 2023-07 requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. The ASU also permits companies to disclose more than one measure of segment profit or loss, requires disclosure of the title and position of the Chief Operating Decision Maker, and requires companies with a single reportable segment to provide all disclosures required by Topic 280. The Company adopted this guidance for the year ended December 31, 2024 through providing enhanced segment disclosures within the notes to the consolidated financial statements. See Note 16, “Segment Information.” Recent Accounting Pronouncements Not Yet Adopted ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company for annual periods beginning after December 15, 2025, on a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. ASU 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” ASU 2024-03 requires disaggregated disclosure of income statement expenses into specified categories within the footnotes to the financial statements. ASU 2024-03 is effective for the Company for annual periods beginning after December 15, 2026, interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, and companies are required to apply the ASU prospectively or retrospectively. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
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Revenue Recognition |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table disaggregates the Company’s net revenues by solution type (in thousands):
During the year ended December 31, 2023, the Company lowered its estimate of variable consideration by $2.3 million associated with a Lending Software Solutions channel reseller contract acquired through a past acquisition. The change in the estimate of variable consideration for that period was due to a commercial dispute with the reseller in the period, which resulted in a reduction in the amount the Company expected to receive under this contract as the receipt of this amount was no longer considered to be probable. The following table disaggregates the Company’s net revenues by major source (in thousands):
Contract Balances The following table presents amounts related to customer contract-related arrangements, which are included on the consolidated balance sheets as follows (in thousands):
The balance of deferred revenue will increase or decrease based on the timing of invoices and recognition of revenue. Significant changes in our deferred revenue balances during the years ended December 31, 2024 and 2023 were as follows (in thousands):
Allowance for Credit Losses A rollforward of the Company’s allowance for expected credit losses balance for the years ended December 31, 2024, and 2023, is as follows (in thousands):
Costs Capitalized to Obtain Revenue Contracts The following table represents the changes in costs capitalized to obtain revenue contracts (in thousands):
There was no impairment of costs capitalized to obtain revenue contracts during the years ended December 31, 2024, 2023, and 2022.
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Balance Sheet Components |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands):
Capitalized Cloud Computing Arrangement Costs Capitalized cloud computing arrangement costs consisted of the following (in thousands):
Amortization expense for capitalized cloud computing arrangement costs was immaterial for the years ended December 31, 2024, 2023, and 2022. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands):
Depreciation expense was $1.4 million, $1.9 million, and $2.3 million for the years ended December 31, 2024, 2023, and 2022, respectively. Intangible Assets, Net Intangible assets, net consisted of the following (in thousands):
For the years ended December 31, 2024, 2023, and 2022, the Company capitalized $7.4 million, $9.6 million, and $8.5 million, respectively, related to internally developed software costs. The weighted average remaining useful lives for intangible assets as of December 31, 2024, were as follows:
Amortization expense related to intangible assets was as follows (in thousands):
The estimated future amortization of intangible assets as of December 31, 2024, was as follows (in thousands):
No impairment of long-lived assets was recorded during the years ended December 31, 2024, 2023, or 2022. Goodwill A rollforward of the Company’s goodwill balance for the years ended December 31, 2024 and 2023 was as follows (in thousands):
During the year ended December 31, 2024, the Company used the qualitative approach to perform its annual goodwill impairment test and concluded it was more likely than not that the fair value of the Company’s reporting unit exceeded the carrying value of its net assets. No goodwill impairment was recorded during the years ended December 31, 2024, 2023, and 2022. Accrued Liabilities Accrued liabilities consisted of the following (in thousands):
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Commitments and Contingencies |
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company is, and from time to time may be, involved in legal proceedings and claims arising out of the Company’s operations in the ordinary course of business. The Company accrues estimates for resolution of legal proceedings and other contingencies when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss is reasonably estimable. Management is not currently aware of any legal proceedings or claims against it that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. During the year ended December 31, 2024, the Company incurred and paid $1.5 million related to the settlements of class action litigation claims. Other Contractual Commitments The Company’s contractual commitments primarily consist of third-party cloud infrastructure agreements and service subscription arrangements used to support operations at the enterprise level. Future minimum payments under the Company’s non-cancelable purchase commitments as of December 31, 2024, are as follows (in thousands):
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Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt Debt consisted of the following (in thousands):
Total interest expense, excluding amortization of debt issuance costs, was $37.7 million, $37.1 million, and $21.6 million for the years ended December 31, 2024, 2023, and 2022, respectively. Credit Agreement The credit agreement dated as of November 10, 2021, (as amended by the 2023 Amendment (as defined below), the 2024 Amendment (as defined below) and as may be further amended, restated, amended and restated, supplemented and/or otherwise modified from time to time prior to the date hereof the “Credit Agreement”), provided for a term loan facility (the “Term Loan”) with an original aggregate principal amount of $435.0 million and a revolving credit facility (the “Revolving Credit Facility”) of $50.0 million, inclusive of a $10.0 million letter of credit sub-facility. On June 20, 2023, the Company entered into the Conforming Changes Amendment to Credit Agreement (the “2023 Amendment”) which established the Secure Overnight Financing Rate (“SOFR”) as the benchmark rate used in the definition of the Eurocurrency Rate for its Term Loan and Revolving Credit Facility. Under the terms of the 2023 Amendment, SOFR will be used as the benchmark rate for interest periods beginning on or after June 30, 2023. In connection with the 2023 Amendment, the Company paid $0.1 million of fees that were expensed during the year ended December 31, 2023. On May 15, 2024, the Company entered into the Refinancing Amendment and First Amendment to Credit Agreement (the “2024 Amendment”). Pursuant to the 2024 Amendment, among other things, the aggregate principal amount of the Term Loan increased by $50.0 million and the interest rate on the Term Loan was changed. The Company accounted for the 2024 Amendment as a debt modification. The Company paid $1.3 million of fees related to the 2024 Amendment, of which $0.8 million was recorded as debt issuance costs and $0.5 million was expensed in general and administrative expense on the Company’s consolidated statements of operations during the year ended December 31, 2024. Unamortized debt issuance costs related to the Term Loan were $4.1 million and $3.8 million as of December 31, 2024 and 2023, respectively. Unamortized debt issuance costs related to the Revolving Credit Facility were $0.2 million and $0.3 million as of December 31, 2024 and 2023, respectively. Amortization of debt issuance costs was $0.7 million, $1.1 million, and $2.8 million for the years ended December 31, 2024, 2023, and 2022, respectively, and was included in interest expense in the consolidated statements of operations. The obligations under the Credit Agreement are secured by a lien on substantially all tangible and intangible property of the Company, subject to customary exceptions, limitations, and exclusions from the collateral. The Credit Agreement contains customary affirmative covenants, negative covenants and events of default, including covenants and restrictions that, among other things, require the Company to satisfy a financial covenant, and restricts or limits the ability of the Company to grant or incur liens, incur additional indebtedness, enter into joint ventures or partnerships, engage in mergers and acquisitions, engage in asset sales, and declare dividends on its capital stock, subject in each case to certain customary exceptions. A failure to comply with covenants could permit the lenders to declare the Term Loan, and any then outstanding borrowings on the Revolving Credit Facility, together with accrued interest and fees thereon, to be immediately due and payable. The Company was in compliance with all financial covenants of the Credit Agreement at December 31, 2024. Term Loan The Company is required to make quarterly payments equal to 0.25% of the aggregate original principal amount of the Term Loans, commencing with the fiscal quarter ended June 30, 2024, with the remainder due at maturity on November 10, 2028. Borrowings under the Term Loan bear interest at a variable rate, elected by the Company, equal to the Base Rate (as defined in the Credit Agreement) or Term SOFR (as defined in the Credit Agreement), plus, an Applicable Rate (as defined in the Credit Agreement) based on the Company’s Consolidated First Lien Net Leverage Ratio (as defined by the Credit Agreement), which was 2.75% at December 31, 2024. The effective interest rate on the Term Loan was 7.41% as of December 31, 2024. Revolving Credit Facility The Company had no balance outstanding on the Revolving Credit Facility as of December 31, 2024 and 2023. The Revolving Credit Facility matures on November 10, 2026. Borrowings under the Revolving Credit Facility bear interest, at the election of the Company, at a rate equal to the Base Rate (as defined in the Credit Agreement) or Term SOFR (as defined in the Credit Agreement) plus a SOFR Adjustment (as defined in the Credit Agreement), plus, in each case, the Applicable Rate (as defined in the Credit Agreement) based on the Company’s Consolidated First Lien Net Leverage Ratio, which was 2.75% at December 31, 2024. The Revolving Credit Facility is subject to a Revolving Commitment Fee (as defined in the Credit Agreement) based on the Company’s Consolidated First Lien Net Leverage Ratio, which was 0.50% per annum at December 31, 2024. Future Principal Payments Future principal payments of debt as of December 31, 2024, were as follows (in thousands):
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Stockholders' Equity |
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| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity | Stockholders’ Equity Common Stock The Company filed its certificate of incorporation in the State of Delaware on July 27, 2021, whereby the Company’s authorized capital stock consists of 650,000,000 shares of capital stock, $0.001 par value per share, of which 600,000,000 shares are designated as common stock and 50,000,000 shares are designated as preferred stock. Dividend Rights Subject to preferences that may apply to any shares of preferred stock outstanding at the time, and any contractual limitations, such as the Company’s credit agreements, the holders of common stock are entitled to receive dividends out of funds then legally available, if any, if the board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that the board of directors may determine. Voting Rights The holders of common stock are entitled to one vote per share. The Company’s shares of common stock vote as a single class on all matters relating to the election and removal of directors from the board of directors and as provided by law. The Company’s stockholders do not have the ability to cumulate votes for the election of directors. Except in respect of matters relating to the election of directors, or as otherwise provided in the Company’s charter or required by law, all matters to be voted on by stockholders must be approved by a majority of the shares present in person or by proxy at the meeting and entitled to vote on the subject matter. In the case of the election of directors, director candidates must be approved by a plurality of the shares present in person or by proxy at the meeting and entitled to vote on the election of directors. No Preemptive or Similar Rights The Company’s common stock is not entitled to preemptive rights and is not subject to conversion, redemption, or sinking fund provisions. Right to Receive Liquidation Distributions If the Company becomes subject to a liquidation, dissolution, or winding-up, the assets legally available for distribution to the Company’s stockholders would be distributed ratably among the holders of common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of preferred stock. Fully Paid and Non-Assessable All of the outstanding shares of common stock are fully paid and non-assessable. Preferred Stock Pursuant to the Company’s charter, the board of directors has the authority, without further action by the stockholders, to issue from time to time shares of preferred stock in one or more series. The board of directors may designate the rights, preferences, privileges, and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, redemption rights, liquidation preference, sinking fund terms, and the number of shares constituting any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on the common stock, diluting the voting power of common stock, impairing the liquidation rights of common stock, or delaying, deterring, or preventing a change in control. Such issuance could have the effect of decreasing the market price of the Company’s common stock. Any preferred stock so issued may rank senior to the common stock with respect to the payment of dividends or amounts upon liquidation, dissolution or winding up, or both. The Company currently has no plans to issue any shares of preferred stock. Stock Repurchase Programs In May 2022, the Company’s board of directors authorized a stock repurchase program to acquire up to $75.0 million of the Company’s common stock, with no fixed expiration date and no requirement to purchase any minimum number of shares (the “2022 Stock Repurchase Program”). In January 2024, the Company’s board of directors authorized a stock repurchase program to acquire up to $125.0 million of the Company’s common stock, with no fixed expiration date and no requirement to purchase any minimum number of shares (the “2024 Stock Repurchase Program”). The manner, timing, and actual number of shares repurchased under the programs will depend on a variety of factors, including price, working capital needs, general business and market conditions, regulatory requirements, and other investment opportunities. Shares may be repurchased through privately negotiated transactions, or open market purchases, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934. The repurchase programs may be commenced, suspended, or terminated at any time by the Company at its discretion without prior notice. Approximately $44.4 million (including excise taxes) of the 2024 Stock Repurchase Program was used for the stock repurchase in connection with the February Secondary Offering (defined below). For both the 2022 Stock Repurchase Program and 2024 Stock Repurchase Program, the Company retires the repurchased shares, which automatically return to the status of authorized but unissued shares of common stock. The cost of the repurchased shares, including commissions, fees, and excise taxes are recorded as an adjustment to accumulated deficit on the Company’s consolidated balance sheets and statements of stockholders’ equity. Secondary Offerings by Selling Stockholders and Related Common Stock Repurchase On September 30, 2024, the Company completed an underwritten secondary offering for the sale of 6,000,000 shares of common stock by certain funds managed by Thoma Bravo, L.P., at an offering price of $21.05 per share, (the “September Secondary Offering”). In connection with the September Secondary Offering, the selling stockholders granted the underwriter a 30-day option to purchase up to an additional 900,000 shares of common stock from the selling stockholders at the offering price of $21.05 per share. The underwriter partially exercised its option to purchase an additional 650,000 shares of common stock on October 18, 2024, and the remaining portion of the option expired unexercised on October 26, 2024. The Company did not receive any proceeds from the sale of its common stock by the selling stockholders in the September Secondary Offering. During the year ended December 31, 2024, the Company incurred costs of $0.7 million in connection with the September Secondary Offering, which were included within general and administrative expenses on the Company’s consolidated statements of operations. On February 9, 2024, the Company completed an underwritten secondary offering for the sale of 6,906,015 shares of common stock by certain of its existing stockholders, at an offering price of $19.00 per share (the “February Secondary Offering”). The selling stockholders also granted the underwriters a 30-day option to purchase up to an additional 675,000 shares of common stock from the selling stockholders at the public offering price, less underwriting discounts and commissions. The underwriters did not exercise their option to purchase any additional shares before the expiration of the 30-day window. The Company did not receive any proceeds from the sale of its common stock by the selling stockholders in the February Secondary Offering. During the year ended December 31, 2024, the Company incurred costs of $1.4 million in connection with the February Secondary Offering, which were included within general and administrative expenses on the Company’s consolidated statements of operations. The September and February Secondary Offerings were made pursuant to an effective shelf registration statement on Form S-3 (Registration No. 333-276336), which was filed with the Securities and Exchange Commission on December 29, 2023 and became effective on January 8, 2024. On February 9, 2024, in connection with the February Secondary Offering and pursuant to the 2024 Repurchase Program, the Company purchased 2,406,015 shares of its common stock from the underwriters at a price per share equal to $18.2875, which is equal to the per share price at which the underwriters purchased the shares from the selling stockholders in the February Secondary Offering, resulting in an aggregate purchase price of approximately $44.4 million (including excise taxes). Stock Repurchase Activity A summary of repurchased share activity during the years ended December 31, 2024, 2023, and 2022 is as follows (in thousands except share data):
As of December 31, 2024, there was a total of $29.7 million remaining for repurchase under the stock repurchase program. In February 2025, the Company’s board of directors authorized a new stock repurchase program to acquire up to $129.5 million of the Company’s common stock including commissions, fees, and excise taxes, superseding all prior authorized stock repurchase programs. See Note 17 “Subsequent Events” for additional information.
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Share-Based Compensation |
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| Share-Based Compensation | Share-Based Compensation 2021 Stock Option and Incentive Plan The 2021 Stock Option and Incentive Plan (the “2021 Plan”) was adopted by the board of directors, approved by the Company’s stockholders, and became effective as of July 26, 2021. The Company had initially reserved 13,171,588 shares of its common stock for the issuance of awards under the 2021 Plan. The 2021 Plan provides that the number of shares reserved and available for issuance under the 2021 Plan will automatically increase on January 1, 2022 and each January 1 thereafter, by 5% of the outstanding number of shares of common stock on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. The number of shares reserved under the 2021 Plan is subject to adjustment in the event of a stock split, stock dividend, or other change in the Company’s capitalization. The 2021 Plan provides flexibility to the Company’s compensation committee to use various equity-based incentive awards as compensation tools to motivate the Company’s workforce. The incentive awards that may be granted under the 2021 Plan include, but are not limited to, options to purchase common stock, stock appreciation rights, restricted shares of common stock, restricted stock units, and cash bonuses. Stock Options The 2021 Plan provides for grants of stock options which allow option holders to purchase shares of common stock in the Company. For time-based service options granted, the options vest over a period of to four years, subject to the terms of the award agreement. The performance-based options vest upon achieving annual EBITDA targets. An option holder must be an employee of the Company at the date of these vesting conditions. The stock options are generally subject to forfeiture if employment terminates prior to the vesting date. The contractual term of the stock options is 10 years. A summary of stock option activity during the years ended December 31, 2024, 2023, and 2022 is as follows (in thousands, except options, price per option, and term amounts):
The total fair value of options that vested during the years ended December 31, 2024, 2023, and 2022 was $4.3 million, $5.9 million, and $7.6 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2024, 2023, and 2022 was $8.5 million, $3.3 million, and $0.4 million, respectively. The fair value of all time-based service options and performance-based options granted was estimated using a Black-Scholes option pricing model with the following assumptions: Volatility – Prior to Q2 2022, the computation of expected volatility was based on a calculation using the historical volatility of a group of publicly traded peer companies. In evaluating the similarity of peer companies, the Company considered factors such as industry, stage of life cycle, size, and financial leverage. Beginning in Q2 2022, expected volatility is based on historical volatility data of the Company’s stock. Risk-Free Interest Rate – The risk-free interest rates are based on U.S. Treasury yields in effect at the grant date for notes over the expected option term. Expected Term – The estimate of the expected term of options granted was determined by utilizing a weighted-average approach, considering the use of the “simplified method” (where the expected term is presumed to be equal to the vesting period plus the midpoint of the remaining contractual term). The Company utilizes this method as it does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Dividend Yield – The expected dividend yield assumption of zero is based on the Company’s current expectations about its anticipated dividend policy over the expected option term. Over the course of the Company’s history, it has not declared or paid any dividends to stockholders. The following assumptions were used by the Company to record compensation expense for performance-based and time-based options granted during the year ended December 31, 2022. No options were granted during the years ended December 31, 2024 or 2023 (dollars in thousands, except per option amounts):
The Company recognized $3.9 million, $5.3 million, and $6.7 million in share-based compensation expense related to time-based and performance-based stock options for the years ended December 31, 2024, 2023, and 2022, respectively. During the year ended December 31, 2024, the performance-based stock options were forfeited and none remain outstanding as of December 31, 2024. As of December 31, 2024, there was $2.3 million of unrecognized share-based compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 0.97 years. Restricted Stock Units The 2021 Plan provides for grants of restricted stock units (“RSUs”) whereby each RSU shall relate to one share of common stock. The RSUs are subject to time-based vesting, generally over a period of to four years, as holders provide services to the Company. The RSUs are generally subject to forfeiture if employment terminates prior to the vesting date. The cost of share-based compensation for RSUs is measured based on the closing fair market value of the Company’s common stock at the date of grant. Share-based compensation is recognized ratably over the period during which the vesting restrictions lapse. In August 2024, the Company granted 296,544 performance-based restricted stock units (“PSUs”) under the 2021 Plan, which had a requisite service period through December 31, 2024. The fair value of the PSUs on the grant date was $6.6 million based on the closing share price of the Company’s common stock at the date of grant. Each PSU shall relate to one share of common stock upon vesting and release. The number of shares that was earned is based on achievement of adjusted EBITDA, sales, and revenue-related performance targets for the year ended December 31, 2024. The Company recognized $6.6 million in share-based compensation expense related to PSUs during the year ended December 31, 2024, as the performance measures were achieved during the relevant periods. Such shares will be released upon board-level confirmation of achievement. A summary of RSU activity during the years ended December 31, 2024, 2023, and 2022 is as follows:
As of December 31, 2024, 6,472,758 RSUs are expected to vest. The Company recognized $47.1 million, $24.8 million, and $15.4 million in share-based compensation expense related to RSUs for the years ended December 31, 2024, 2023, and 2022, respectively. As of December 31, 2024, there was $108.5 million of unrecognized share-based compensation expense related to RSUs, which is expected to be recognized over a weighted-average period of approximately 2.7 years. Employee Stock Purchase Plan The 2021 Employee Stock Purchase Plan (the “2021 ESPP”), was adopted by the board of directors, approved by the Company’s stockholders, and became effective as of July 26, 2021. The 2021 ESPP initially reserves and authorizes the issuance of up to a total of 810,345 shares of common stock to participating employees. The 2021 ESPP provides that the number of shares reserved and available for issuance will automatically increase on January 1, 2022, and each January 1 thereafter through January 1, 2031, by the least of (i) 900,000 shares of common stock, (ii) 1% of the outstanding number of shares of common stock on the immediately preceding December 31 or (iii) such lesser number of shares of common stock as determined by the administrator of the 2021 ESPP. The number of shares reserved under the 2021 ESPP will be subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. All employees will be eligible to participate in the 2021 ESPP. However, any employee who owns 5% or more of the total combined voting power or value of all classes of stock will not be eligible to purchase shares under the 2021 ESPP. The Company may make one or more offerings each year to its employees to purchase shares under the 2021 ESPP. Offerings will usually begin on each May 1 and November 1 and will continue for six-month periods, referred to as offering periods. Each eligible employee will be able to elect to participate in any offering by submitting an enrollment form at least 15 business days before the relevant offering date. An employee’s rights under the 2021 ESPP will terminate upon voluntary withdrawal from the plan or when the employee ceases employment with us for any reason. During the year ended December 31, 2024, the Company has issued 129,925 shares of common stock under the 2021 ESPP. As of December 31, 2024, there was $0.2 million of unrecognized share-based compensation related to the ESPP that is expected to be recognized over the remaining term of the current offering period. The Company recognized $0.6 million, $0.7 million, and $0.7 million of share-based compensation expense related to the ESPP for the years ended December 31, 2024, 2023, and 2022, respectively. Share-Based Compensation Share-based compensation for share-based awards granted to participants has been recorded in the consolidated statements of operations for the years ended December 31, 2024, 2023, and 2022 as follows (in thousands):
(1)Net of $0.3 million, $0.3 million and $0.3 million additions to capitalized software for the years ended December 31, 2024, 2023, and 2022, respectively. (2)Relates to unvested stock compensation that was forfeited or accelerated as part of the 2024 Realignment Plan and 2023 Restructuring Plan. See Note 12, “Restructuring Activities.”
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Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes The provision for income taxes for the years ended December 31, 2024, 2023, and 2022 consisted of the following (in thousands):
Effective Income Tax Rate The provision for income taxes differed from that computed at the federal statutory corporate income tax rate as follows for the years ended December 31, 2024, 2023, and 2022 (in thousands):
Deferred Tax Assets and Liabilities Deferred tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company regularly assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, both positive and negative, using a “more likely than not” realization standard. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In making such judgements, significant weight is given to evidence that can be objectively verified. After analyzing all available evidence, including the past and current trend in volatility in the Company’s business operating environment, which has impacted the Company’s current ability and expectation to generate sufficient future taxable income to fully realize its deferred tax assets, the Company continues to maintain that it is more likely that it would not be able to utilize all of the deferred tax assets as of December 31, 2024, and 2023, and, therefore, has a partial valuation allowance against its deferred tax assets. The Company’s valuation allowance was $34.7 million and $29.4 million as of December 31, 2024, and 2023, respectively. A rollforward of the Company’s valuation allowance for the years ended December 31, 2024 and 2023 was as follows (in thousands):
There was no such valuation allowance recorded as of December 31, 2022. During this period, the Company considered all positive and negative evidence and, based on the weight of such evidence, concluded using a more likely than not realization standard that a valuation allowance was not needed. Deferred income taxes at December 31, 2024, and 2023 consisted of the following (in thousands):
Net operating loss (“NOL”) and research & development tax credit (“R&D”) carryforwards at December 31, 2024, and 2023 consisted of the following (in thousands):
The Company has federal and state net operating loss carryforwards of $54.8 million and $60.2 million, respectively, at December 31, 2024, to reduce future cash payments for income taxes. The NOL carryforward amounts at December 31, 2024, and 2023 do not include $13.3 million and $13.3 million, respectively, of federal NOLs that are expected to expire prior to utilization due to a Section 382 limitation placed on certain acquired NOLs. Of the $54.8 million federal NOL carryforwards, $12.0 million will expire from 2035 through 2037, and $42.8 million will carry over indefinitely. Of the $60.2 million state NOL carryforwards, $44.6 million will expire from 2027 through 2044, and $15.6 million will carry over indefinitely. Uncertain Tax Positions The Company has recorded an uncertain tax position with respect to its R&D tax credit carryforwards. There are no material penalties or interest recorded on the Federal, California, and Virginia R&D tax credit carryforwards as some reserved credits have been utilized on a tax return, but there are sufficient carryforwards to offset the uncertain portion of the credits that would potentially be disallowed, and therefore the uncertain tax position is recorded as a reduction of the deferred tax asset related to these credits. The Company does not anticipate any material changes to unrecognized tax benefit within the next twelve months that will affect the effective tax rate. The Company has gross federal and state R&D tax credit carryforwards, before an uncertain tax position reserve, of $8.5 million and $5.0 million, respectively, as of December 31, 2024. A reserve for uncertain tax positions has been recorded against the federal and state credits of $2.6 million and $1.3 million, respectively, at December 31, 2024, and $2.4 million and $1.2 million, respectively, at December 31, 2023. The R&D tax credit carryforwards are net of a Section 382 limitation of $0.2 million placed on certain acquired R&D tax credits. The federal and state R&D tax credit carryforwards begin to expire in 2034 and 2038, respectively, and $4.9 million of state research credits have no expiration period. The reconciliation of unrecognized tax benefits at the beginning and end of the year was as follows (in thousands):
Included in the balance of unrecognized tax benefits as of December 31, 2024, 2023, and 2022 are $0.0 million, $0.0 million, and $2.5 million, respectively of tax benefits that, if recognized, would affect the effective tax rate. Also included in the balance of unrecognized tax benefits as of December 31, 2024, 2023, and 2022 are $3.9 million, $3.5 million, and $0.0 million, respectively of tax benefits that, if recognized, would be offset against the valuation allowance. The Company is subject to U.S. federal income tax as well as to income tax of multiple state jurisdictions. The Company is subject to examination for tax years back to 2021 and 2020 for federal and state purposes, respectively, and certain of its NOL carryforwards dating back to 2009 are subject to adjustment by the taxing authorities as a portion of these have been utilized in tax returns for the period ended December 31, 2022 and December 31, 2021. As of December 31, 2024, the Company had no outstanding income tax audits.
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Related Party Transactions |
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| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions | Related Party Transactions In the course of its business operations, the Company maintains agreements for services from companies in which certain investment funds advised by a significant stockholder hold an investment. These services primarily relate to vehicle lookup data through an API integrated with many of the Company's products and costs related to financial and business planning software, among others. These costs are recorded as cost of revenues or operating expenses on the Company’s consolidated statements of operations, depending on the nature of the agreement or transactions. Costs associated with these agreements and transactions are considered to be related party transactions. The following table presents the impact of related party transactions on the Company’s consolidated statements of operations (in thousands):
The following table presents the impact of related party transactions on the Company’s consolidated balance sheets (in thousands):
Under the terms of these related-party transactions, all amounts incurred and recognized are expected to be settled within one year from the date of the accompanying consolidated balance sheets. On September 8, 2023, the Company entered into a privately-negotiated transaction with a stockholder to repurchase 1,525,027 shares of the Company’s common stock at a price per share of $16.43, for an aggregate purchase price of approximately $25.0 million. This represented a 5% discount on the Company’s 7-day moving average price on September 7, 2023. The repurchase settled on September 11, 2023, and was completed pursuant to the Company’s previously announced stock repurchase program authorized in May 2022. There were no similar related party transactions during the year ended December 31, 2024.
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Net (Loss) Income Per Share |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (Loss) Income Per Share | Net (Loss) Income Per Share The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except share and per share data):
A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows:
The following outstanding potentially dilutive securities were excluded from the calculation of diluted net loss per share attributable to common stockholders because their impact would have been anti-dilutive for the periods presented:
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Restructuring Activities |
12 Months Ended |
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Dec. 31, 2024 | |
| Restructuring and Related Activities [Abstract] | |
| Restructuring Activities | Restructuring Activities 2024 Realignment Plan In January 2024, the Company’s board of directors authorized an organizational realignment plan (the “2024 Realignment Plan”) that was designed to manage operating costs, enable efficient delivery on business objectives, and allow for growth in areas of strategic importance. The 2024 Realignment Plan included a reduction of the Company’s then-current workforce by approximately 12%. The Company completed the 2024 Realignment Plan during the year ended December 31, 2024. Restructuring charges of $4.0 million for severance and related costs were recognized during the year ended December 31, 2024 and reflected in restructuring related costs on the Company’s consolidated statements of operations. 2023 Restructuring Plan In February 2023, the Company’s board of directors authorized a restructuring plan (the “2023 Restructuring Plan”) that was designed to consolidate the Company’s functions and investments to prioritize customer-centric areas of the Company’s organization, align teams with the Company’s highest business priorities, and improve efficiencies. The 2023 Restructuring Plan included a reduction of the Company’s then-current workforce by approximately 11%. The Company completed the 2023 Restructuring Plan during the year ended December 31, 2023. Restructuring charges of $3.6 million for severance and related costs, net of $0.7 million previously vested share-based compensation, were recognized during the year ended December 31, 2023. These charges are reflected in restructuring-related costs on the Company’s consolidated statements of operations.
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Business Combinations |
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| Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations | Business Combinations Acquisition of OpenClose On November 4, 2022, the Company acquired all of the outstanding stock of Beanstalk Networks LLC, doing business as OpenClose (“OpenClose”), for cash consideration of $62.8 million. In connection with the acquisition, the Company incurred $1.9 million in acquisition related costs. The acquisition was funded by the Company’s available cash. OpenClose provides mortgage lending technology, with a particular focus on supporting depository institutions. Results of operations of OpenClose have been included in the operations of the Company beginning with the closing date of the acquisition. Revenue and net income attributable to OpenClose were $2.5 million and $0.2 million for the year ended December 31, 2022, respectively. The table below summarizes the allocation of the purchase price of OpenClose based on the estimated fair value of the assets acquired and the liabilities assumed (in thousands):
During the year ended December 31, 2023, the Company finalized the provisional purchase price allocation related to final working capital adjustments and income tax effects for the acquisition of OpenClose, resulting in changes to the acquisition’s opening balance sheet, including an increase to accrued liabilities of $0.6 million, and decrease in cash consideration transferred of $0.3 million with the corresponding net amount of $0.3 million as an increase to goodwill. The goodwill recognized is attributable to an increased customer base and expanded service capabilities. The OpenClose acquisition is treated as an asset purchase for income tax purposes; therefore all goodwill recorded is considered deductible for income tax purposes. The fair value of the separately identifiable finite-lived intangible assets acquired and estimated useful lives are as follows (in thousands, except years):
The fair value estimates for intangible assets include significant assumptions in the prospective financial information, such as revenue growth and discount rates. The fair value of the intangible assets was primarily based on the income approach using various methods such as the relief from royalty, with-or-without, and excess earnings methods. Acquisition of StreetShares On April 1, 2022, the Company acquired all of the outstanding stock of StreetShares, Inc. (“StreetShares”) for cash consideration of $28.0 million, $30.0 million in escrow for a contingent earnout that expired April 1, 2023, subject to adjustment as defined in the purchase agreement, and $1.6 million in acquisition costs. The $30.0 million was considered contingent consideration and accounted for separate from the business combination accounting. The acquisition was funded by the Company’s available cash. StreetShares is a financial technology company that provides digital small business lending technology to banks and credit unions. During the year ended December 31, 2023, the $30.0 million held in escrow as contingent earnout proceeds was not earned and was released in its entirety back to the Company. The Company recognized $30.0 million as an increase to cash on its consolidated balance sheets. Results of operations of StreetShares have been included in the operations of the Company beginning with the closing date of the acquisition. Revenue and net loss attributable to StreetShares were $2.9 million and $4.1 million, respectively, for the year ended December 31, 2022. The table below summarizes the allocation of the purchase price of StreetShares based on the estimated fair value of the assets acquired and the liabilities assumed (in thousands):
(1)Prior to the acquisition, StreetShares was subject to Regulation A+ of the Securities and Exchange Commission and had offered StreetShares notes to investors. The notes were scheduled to mature during various dates through 2023. Subsequent to the acquisition, during April 2022, the Company used the $3.3 million restricted cash balance to repay the Regulation A+ payable in full. During the year ended December 31, 2023, the Company finalized the provisional purchase price allocation related to income tax effects for the acquisition of StreetShares, resulting in a reduction to the deferred tax asset and corresponding increase to goodwill in the amount of $1.1 million. The goodwill recognized is attributable to the Company’s expected acceleration of its small business lending service capabilities. The StreetShares acquisition is treated as a stock purchase for income tax purposes; therefore, of the goodwill recorded, none is considered deductible for income tax purposes. The fair value of the separately identifiable finite-lived intangible assets acquired and estimated useful lives are as follows (in thousands, except years):
The fair value estimates for intangible assets include significant assumptions in the prospective financial information, such as revenue growth and discount rates. The fair value of the intangible assets was primarily based on the income approach using various methods such as the relief from royalty, with-or-without, and excess earnings methods. Contingent Earnout Liability The purchase price for StreetShares included a potential earnout that was measured over 12 months from April 2, 2022, through April 1, 2023, based on performance factors outlined in the acquisition agreement. The contingent earnout liability was recorded at estimated fair value each reporting period using a Monte Carlo simulation based on the forecasted operating results over the earnout period, estimates for market volatility, discount rates, and the earnout formula specified in the acquisition agreement. As the fair value uses significant unobservable inputs, it is considered a Level 3 fair value measurement. The contingent earnout liability was initially recorded in accrued liabilities on the Company’s consolidated balance sheets. The $30.0 million held in escrow as contingent earnout proceeds was not earned and was released in its entirety back to the Company during the year ended December 31, 2023. Pro Forma Financial Information (Unaudited) The pro forma statements of operations data for the year ended December 31, 2022 gives effect to the OpenClose acquisition, described above, as if it had occurred at January 1, 2022. These amounts have been calculated after adjusting the operating results of OpenClose for the following primary items: (1) additional intangible amortization from the transaction, (2) acquisition-related expenses incurred, and (3) the related tax effects of the above adjustments. For the year ended December 31, 2022 pro forma revenue was $300.2 million and pro forma earnings reflect net losses of $0.4 million. The unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the actual results of operations had the acquisitions taken place as of January 1, 2022, or the results of our future operations. Furthermore, the pro forma results do not give effect to all cost savings or incremental costs that may occur as a result of the integration and consolidation of the completed acquisitions. Pro forma information for the StreetShares acquisition is not provided because its historical operating results were not material to the Company’s consolidated results of operations.
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases The Company leases office space and server equipment under various operating lease agreements that expire through December 2027. The Company recognizes the related rent expense on a straight-line basis over the term of each lease. Free rent and rental increases are recognized on a straight-line basis over the term of each lease. As of December 31, 2024, the weighted average remaining lease term was 2.0 years and the weighted average discount rate was 6.7%. The Company does not have any finance leases as of December 31, 2024. The Company also has subleases of former office spaces which expire at various dates from 2024 to 2026. Sublease income from operating leases, which is recorded as a reduction of rental expense, was $0.2 million, $0.3 million, and $0.4 million for the years ended December 31, 2024, 2023, and 2022, respectively. Rent expense, gross of sublease income, has been recorded in the consolidated statements of operations for the years ended December 31, 2024, 2023, and 2022 as follows (in thousands):
The following table presents supplemental cash flow information about the Company’s leases (in thousands):
The following table presents supplemental balance sheet information about the Company’s leases (in thousands):
As of December 31, 2024, remaining maturities of lease liabilities were as follows (in thousands):
(1)Presented gross of sublease income. The Company expects to receive sublease income of $0.2 million in 2025, and $0.2 million in 2026. No impairment of ROU assets was recorded during the years ended December 31, 2024, 2023, or 2022.
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Employee Benefits |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Retirement Benefits [Abstract] | |
| Employee Benefits | Employee Benefits The Company has a retirement savings plan, which qualifies under Section 401(k) of the Internal Revenue Code. Under the plan, participating employees may make elective deferrals which are matched up to specified limits by the Company. Employer matching contributions for the years ended December 31, 2024, 2023, and 2022 were $1.6 million, $1.6 million, and $1.4 million, respectively.
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Segment Information |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information | Segment Information Description of Products and Services The Company's management determined that it operates in one operating and reportable segment that is focused exclusively on providing cloud-based digital solutions in the United States. In reaching this conclusion, management considers the definition of the chief operating decision maker (“CODM”), how the business is defined by the CODM, the nature of the information provided to the CODM and how that information is used to make operating decisions, allocate resources, and assess performance. The Company's CODM is the chief executive officer. The results of operations provided to and analyzed by the CODM are at the consolidated level, and accordingly, key resource decisions and assessment of performance are performed at the consolidated level. The Company assesses its determination of operating segments at least annually. Measure of Segment Profit or Loss and Assets The CODM assesses performance for its segment and decides how to allocate resources based on consolidated net income (loss) as reported on the consolidated statements of operations. The CODM uses consolidated net income (loss) in deciding whether to reinvest profits into our single segment, or into other parts of the entity, such as for stock repurchases or acquisitions. The CODM also uses consolidated net income (loss) in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly and quarterly basis when making decisions about the allocation of operating and capital resources, assessing performance, and establishing management’s compensation. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets. The Company does not have intra-entity sales or transfers. The following table presents revenue and expense information for the Company’s reportable segment (in thousands):
(1)Other segment items includes share-based compensation, restructuring related costs, expenses associated with the Company’s public offering, litigation related charges, employer payroll taxes on employee stock transactions, expenses related to material weakness remediation, debt modification expenses, and acquisition related costs. It also includes interest income and other income.
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Subsequent Events |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent EventsIn February 2025, the Company’s board of directors authorized a new stock repurchase program to acquire up to $129.5 million of the Company’s common stock including commissions, fees, and excise taxes, superseding all prior authorized stock repurchase programs, with no fixed expiration date, and no requirements to purchase any minimum number of shares. Shares may be repurchased under the repurchase program through privately negotiated transactions, or open market purchases, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act. Any shares of common stock repurchased under the repurchase program will be retired and automatically returned to the status of authorized but unissued shares of common stock. |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Procedures |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Insider Trading Policies and Procedures [Line Items] | |
| Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
| Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] | We recognize the ever-evolving nature of cybersecurity risks. Our cybersecurity risk management program is informed by recognized industry standards and incorporates elements of the same, including elements of the National Institute of Standards and Technology (NIST) Cybersecurity Framework. MeridianLink also conducts periodic penetration testing and operates a bug bounty program in an effort to expose weaknesses in our applications, networks, and systems before they can be exploited by malicious actors. Our Governance, Risk, and Compliance, or GRC team, in close collaboration with our Security Operations and Engineering teams, monitors and mitigates evolving risks from cybersecurity threats, prioritizing alignment with our business objectives and operational needs. We view cybersecurity risk management as a shared responsibility, and at a management level, we periodically perform tabletop exercises which simulate real-world cyberattacks. We also strategically partner with third-party cybersecurity consultants, assessors, and auditors in evaluating and testing our cybersecurity risk management processes and controls. These strategic partnerships are catalysts for the continuous improvement of our cybersecurity risk management posture. Through audits, threat assessments, and collaborative brainstorming sessions on cybersecurity enhancements, these collaborative partnerships help us bridge knowledge gaps, identify best practices and refine our cybersecurity strategies and processes. Further, we leverage these partnerships to identify cybersecurity vulnerabilities and weaknesses and improve our cybersecurity posture. As part of our cybersecurity risk management program, we maintain processes to proactively manage potential risks posed by third-party vendors. This involves conducting cybersecurity assessments before onboarding any vendor that may have access to our systems, applications, or data, followed by ongoing monitoring by our GRC team and periodic assessments to evaluate these onboarded vendors’ compliance with our cybersecurity standards. We have not identified any cybersecurity incidents or threats that have materially affected us or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition. However, like other companies in our industry, we and our third-party vendors have from time to time experienced threats and security incidents that could affect our information or systems. For more information about the cybersecurity risks we face, see the risk factors in Item 1A- Risk Factors.
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| Cybersecurity Risk Management Processes Integrated [Flag] | true |
| Cybersecurity Risk Management Processes Integrated [Text Block] | We take seriously the security of the data entrusted to us by our customers and the confidentiality, integrity, and availability of our platforms. We have integrated cybersecurity risk management into our broader enterprise risk management framework in an effort to protect our applications, networks, systems, and sensitive data from the risks of cybersecurity threats. This strategic integration allows cybersecurity risk management to inform early decision-making processes across the organization. |
| Cybersecurity Risk Management Third Party Engaged [Flag] | true |
| Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true |
| Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | false |
| Cybersecurity Risk Board of Directors Oversight [Text Block] | Our board of directors is aware of the importance of managing the evolving and complex cybersecurity threat landscape, and has established oversight measures designed to manage associated cybersecurity risks. The Cybersecurity Committee is a decision-making body formed by our board that is tasked with advising and assisting the Chief Information Security Officer, or CISO, on cybersecurity matters and integrating major cybersecurity initiatives into our broader strategy. The Cybersecurity Committee is composed of board members whose backgrounds collectively include experience in risk management, technology, and finance. Our CISO leads our cybersecurity risk management program. The individual currently serving in this role has over 20 years of experience assessing and improving cybersecurity programs, and his background spans multiple industries such as fintech, SaaS, critical infrastructure, legal, and federal, state, and local government. The CISO establishes and supervises procedures for the evaluation of our information systems, including the use of security tools and system reviews designed to spot potential weaknesses. The CISO works to keep up to date with the latest trends in cybersecurity, such as emerging risks and best practices for cybersecurity risk management. In case of a cybersecurity incident, the CISO initiates our incident response plan in an effort to respond to the incident and to reduce the potential damage to our organization. The CISO briefs the Cybersecurity Committee on cybersecurity risks on at least a quarterly basis. These briefings encompass a range of topics, including, as appropriate, key cybersecurity metrics, the current cybersecurity landscape and emerging threats, the status of ongoing cybersecurity initiatives and strategies, and incident management reports and lessons learned from cybersecurity events. The Cybersecurity Committee and CISO also maintain a continuous dialogue on potential threats. The Cybersecurity Committee annually assesses MeridianLink's cybersecurity posture and risk management efficacy. The Cybersecurity Committee chair and/or our General Counsel conveys certain cybersecurity updates on the CISO's behalf during board meetings.
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| Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | Our board of directors is aware of the importance of managing the evolving and complex cybersecurity threat landscape, and has established oversight measures designed to manage associated cybersecurity risks. |
| Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | The CISO briefs the Cybersecurity Committee on cybersecurity risks on at least a quarterly basis. These briefings encompass a range of topics, including, as appropriate, key cybersecurity metrics, the current cybersecurity landscape and emerging threats, the status of ongoing cybersecurity initiatives and strategies, and incident management reports and lessons learned from cybersecurity events. The Cybersecurity Committee and CISO also maintain a continuous dialogue on potential threats. The Cybersecurity Committee annually assesses MeridianLink's cybersecurity posture and risk management efficacy. The Cybersecurity Committee chair and/or our General Counsel conveys certain cybersecurity updates on the CISO's behalf during board meetings.
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| Cybersecurity Risk Role of Management [Text Block] | Our board of directors is aware of the importance of managing the evolving and complex cybersecurity threat landscape, and has established oversight measures designed to manage associated cybersecurity risks. The Cybersecurity Committee is a decision-making body formed by our board that is tasked with advising and assisting the Chief Information Security Officer, or CISO, on cybersecurity matters and integrating major cybersecurity initiatives into our broader strategy. |
| Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
| Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | The Cybersecurity Committee is a decision-making body formed by our board that is tasked with advising and assisting the Chief Information Security Officer, or CISO, on cybersecurity matters and integrating major cybersecurity initiatives into our broader strategy. The Cybersecurity Committee is composed of board members whose backgrounds collectively include experience in risk management, technology, and finance. Our CISO leads our cybersecurity risk management program. The individual currently serving in this role has over 20 years of experience assessing and improving cybersecurity programs, and his background spans multiple industries such as fintech, SaaS, critical infrastructure, legal, and federal, state, and local government. The CISO establishes and supervises procedures for the evaluation of our information systems, including the use of security tools and system reviews designed to spot potential weaknesses. The CISO works to keep up to date with the latest trends in cybersecurity, such as emerging risks and best practices for cybersecurity risk management. In case of a cybersecurity incident, the CISO initiates our incident response plan in an effort to respond to the incident and to reduce the potential damage to our organization. |
| Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | The Cybersecurity Committee is composed of board members whose backgrounds collectively include experience in risk management, technology, and finance. |
| Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | The CISO briefs the Cybersecurity Committee on cybersecurity risks on at least a quarterly basis. These briefings encompass a range of topics, including, as appropriate, key cybersecurity metrics, the current cybersecurity landscape and emerging threats, the status of ongoing cybersecurity initiatives and strategies, and incident management reports and lessons learned from cybersecurity events. The Cybersecurity Committee and CISO also maintain a continuous dialogue on potential threats. The Cybersecurity Committee annually assesses MeridianLink's cybersecurity posture and risk management efficacy. |
| Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
Summary of Significant Accounting Policies (Policies) |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation.
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| Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amounts of revenues and expenses. Certain items subject to such estimates include the fair value of acquired intangible assets; the capitalization of software development costs; the useful lives of long-lived intangible assets; impairment of goodwill and long-lived assets; and income taxes, including the valuation allowance for deferred income taxes. In accordance with GAAP, management bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from those estimates. Accounting policies that most significantly impact the presented amounts within these consolidated financial statements are further described below:
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| Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents are invested in short-term and highly liquid investment-grade obligations, which are held in safekeeping by large and creditworthy financial institutions. Deposits in these financial institutions may exceed federally insured limits. As of December 31, 2024 and 2023, the Company did not have any customers that accounted for greater than 10% of accounts receivable. For the years ended December 31, 2024, 2023, and 2022, the Company did not have any customers that accounted for greater than 10% of net revenues.
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| Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity date of three months or less to be cash equivalents. As of December 31, 2024, and 2023, cash consisted of checking deposit accounts and demand deposit accounts. As of December 31, 2023, cash equivalents included $66.8 million held in a money market fund, and none as of December 31, 2024.
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| Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses The Company’s accounts receivable includes billed and unbilled receivables, net of an allowance for credit losses. Trade accounts receivable are recorded at invoiced amounts and do not bear interest. The Company recognizes an allowance for credit losses on accounts receivable in an amount equal to the current expected credit losses. The estimation of the allowance is based on an analysis of historical loss experience, current receivables aging, and management’s assessment of current conditions and estimated future conditions, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The Company assesses collectability by pooling receivables where similar characteristics exist and evaluates receivables individually when specific customer balances no longer share those risk characteristics and are considered at risk or uncollectible. The expense associated with the allowance for expected credit losses is recognized in general and administrative expenses on the accompanying consolidated statements of operations.
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| Property and Equipment | Property and Equipment The Company records property and equipment at cost or fair market value on the acquisition date, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:
Expenditures for maintenance and repairs are charged to expense as incurred, and major renewals and improvements are capitalized. Gains or losses on disposal of property and equipment are recognized in the period when the assets are sold or disposed of and the related cost and accumulated depreciation is removed from the accounts.
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| Leases | Leases Leases arise from contractual obligations that convey the right to control the use of identified property or equipment for a period of time in exchange for consideration. At the inception of the contract, the Company determines if an arrangement contains a lease based on whether there is an identified asset and whether the Company controls the use of the identified asset. The Company also determines the classification of that lease, between financing and operating, at the lease commencement date. The Company accounts for and allocates consideration to the lease and non-lease components as a single lease component. The Company does not have any financing leases. A right-of-use (“ROU”) asset represents the Company’s right to use an underlying asset, and a lease liability represents the Company’s obligation to make payments during the lease term. ROU assets are recorded and recognized at commencement for the lease liability amount, adjusted for initial direct costs incurred and lease incentives received, and adjusted for prepaid or accrued lease payments. Lease liabilities are recorded at the present value of the future lease payments over the lease term at commencement. The discount rate used to determine the present value is the incremental borrowing rate, unless the interest rate implicit in the lease is readily determinable. As the implicit rate for the operating leases is generally not determinable, the Company uses an incremental borrowing rate as the discount rate at the lease commencement date to determine the present value of lease payments. The Company determines the discount rate of the leases by considering various factors, such as the credit rating, interest rates of similar debt instruments of entities with comparable credit ratings, jurisdictions, and the lease term. The Company’s operating leases typically include non-lease components such as common-area maintenance costs, utilities, and other maintenance costs. For real estate leases, the Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company’s lease terms may include options to extend or terminate the lease. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the Company will exercise those options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company’s ROU assets are included in right of use assets and the current and non-current portions of the lease liabilities are included in accrued liabilities and other long-term liabilities, respectively, on the consolidated balance sheets. The Company does not record leases with terms of 12 months or less on the consolidated balance sheets. Lease expense is recognized on a straight-line basis over the expected lease term. The Company subleases certain unoccupied leased office space. Sublease income is recorded as a reduction of rent expense straight-line over the term of the sublease. The Company tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease.
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| Intangible Assets | Intangible Assets Intangible assets primarily consist of developed technology, customer relationships, trademarks, and non-competition agreements, which were acquired through acquisitions. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized on a straight-line basis over their estimated useful lives.
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| Capitalized Internal-Use Software Costs | Capitalized Internal-Use Software Costs For development costs related to internal use software, the Company capitalizes qualifying computer software development costs that are incurred during the application development stage. Once the application development stage is reached, internal and external costs are capitalized until the software is substantially complete and ready for its intended use. These capitalized costs are amortized on a straight-line basis over the expected useful life of the software of 3 years. Costs related to preliminary project activities and post-implementation activities for developed technology are expensed as incurred. Such capitalized costs related to developed technology are included within the intangible assets balance on the consolidated balance sheets.
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| Capitalized Cloud Computing Arrangement Costs | Capitalized Cloud Computing Arrangement Costs The Company capitalizes certain costs associated with cloud computing arrangements (“CCA”) that are service contracts, including third party software development costs that are part of the application development stage. Capitalized costs for cloud computing arrangements are included in prepaid expenses and other current assets, and other assets on the Company’s consolidated balance sheets. Amounts capitalized are amortized as general and administrative expenses and cost of revenues on the consolidated statements of operations over 2 to 5 years beginning on the date the associated hosting arrangement is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred.
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| Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the carrying value of long-lived assets, including intangible assets with finite lives, right of use assets, costs capitalized to obtain revenue contracts, and property and equipment, whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. The impairment to be recognized is measured as the amount by which the carrying amount exceeds the fair value of the assets.
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| Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is tested for impairment at least annually at the reporting unit level or more frequently if events or changes in circumstances indicate that goodwill might be impaired. Events or changes in circumstances which could trigger an impairment review include consideration of certain key factors including macroeconomic conditions, industry and market conditions, management turnover, changes in regulation, litigation matters, changes in enterprise value, and overall financial performance. The Company first assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not the fair value of its reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test. The quantitative impairment test involves comparing the estimated fair value of a reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. The Company has one reporting unit and tests its goodwill for impairment annually, as of October 1, or more frequently if circumstances indicate that goodwill may not be recoverable.
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| Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company accounts for certain of its financial assets at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: •Level 1 – Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. •Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3 – Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The carrying amounts of most of the Company’s financial instruments, including cash and cash equivalents approximate fair value due to their high liquidity in actively quoted trading markets and their short maturities. The carrying amounts of the Company’s accounts receivable, accounts payable, accrued liabilities, and short-term deferred revenue approximate fair value due to their short maturities. The carrying value of the Company’s long-term debt is considered to approximate the fair value of such debt as of December 31, 2024, and 2023 based upon the interest rates that the Company believes it can currently obtain for similar debt, which is considered a level 2 input to determine fair value.
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| Revenue Recognition | Revenue Recognition Revenue is recognized upon the transfer of control of a promised service to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those services, net of sales taxes. The Company applies the following five-step revenue recognition model in accounting for its revenue arrangements: •Identification of the contract, or contracts, with a customer; •Identification of the performance obligations in the contract; •Determination of the transaction price; •Allocation of the transaction price to the performance obligations in the contract; and •Recognition of revenue when or as the Company satisfies the performance obligations. The Company delivers its solutions using a SaaS model under which its customers pay subscription fees for the use of the Company’s solutions as well as fees for transactions processed. The Company’s subscription fees consist of revenues from software solutions that are governed by pricing and terms contained in contracts between the Company and its customers. The initial term of contracts with customers is typically three years, but may range from to seven years. Customer contracts are typically not cancellable without penalty, and almost always contain an evergreen auto-renewal term that is often for a one-year extension after the initial term, but can extend the auto-renewal of the contract up to the length of the original term. The Company’s subscription fee revenues include annual base fees, platform partner fees, and, depending on the product, fees per search or per loan application or per closed loan (with contractual minimums based on volume) that are charged on a monthly basis, which is referred to as volume-based fees. The Company earns additional revenues based on the volume of applications or closed loans processed above its customers’ contractual minimums. Revenue-generating activities are directly related to the sale, implementation, and support of the Company’s solutions. The Company derives the majority of its revenues from subscription fees for the use of its solutions hosted using cloud-based hosting services, volume-based fees, as well as revenues for customer support and professional implementation services related to the Company’s solutions. Variable consideration exists when the amount that the Company expects to receive in a contract is based on the occurrence or non-occurrence of future events, such as processing services performed under usage-based pricing arrangements or professional services billed on a time-and-materials basis. Variable consideration included in the transaction price of a contract is constrained such that a significant revenue reversal is not probable. Under the standard terms and conditions of the Company's contracts with its customers or partners, contractual transaction price is generally not adjusted due to measurement adjustments associated with estimated variable consideration. Subscription Fee Revenues The Company’s software solutions are generally available for use as hosted application arrangements under subscription fee agreements. The Company’s software solutions consist of an obligation for the Company to provide continuous access to a technology solution that it hosts and routine customer support, both of which the Company accounts for as a stand-ready performance obligation. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the Company’s solution is made available to the customer. Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. For the majority of our customers, additional fees for monthly usage are recognized as revenue in the month when the usage amounts are determined and reported. Certain of the Company’s subscription contracts are invoiced to its customers annually, and revenue is recognized ratably over the service term. In determining whether SaaS services are distinct, we considered whether the series guidance applies to the Company’s subscription services. The Company considered various factors including that substantially all the Company’s SaaS arrangements involve the transfer of a service to the customer, which represents a performance obligation that is satisfied over time because the customer simultaneously receives and consumes the benefits of the services provided. Customer support services, forms maintenance, and subscription services are considered a series of distinct services that are accounted for as a single performance obligation, as the nature of the services are substantially the same and have the same pattern of transfer (i.e., distinct days of service). For these contracts, the Company allocates the ratable portion of the consideration to each period based on the services provided in such period. The Company has concluded that its subscription fees related to monthly usage above the levels included in the standard subscription fee relate specifically to the transfer of the service to the customer in that month and is consistent with the allocation objective when considering all the performance obligations and payment terms in the contract. Therefore, the Company generally recognizes additional usage revenues in the month when the usage amounts are determined and reported. This allocation reflects the amount the Company expects to receive for the services for the given period. The Company has a limited number of legacy customers that host and manage its solutions on-premise under term license and maintenance agreements. This type of arrangement is no longer sold and represents an immaterial amount of the Company’s subscription fee revenues. However, there is no planned sunset or end of life for these on-premise solutions. Professional Services Revenues The Company offers implementation, configuration, consulting, and training services for its software solutions and SaaS offerings. Revenues from the Company’s professional services are recognized as control is transferred to the customer, which can be either at a point in time or over time, depending on the nature of the contractual performance obligations. In determining whether implementation services are distinct from subscription services, we considered that there is not a significant level of integration between implementation and subscription services. Further, implementation services in our contracts provide benefit to the customer with other readily available resources and the implementation services generally are not interdependent with the SaaS subscription services. Therefore, implementation services are generally accounted for as a separate performance obligation, as they represent distinct services that provide benefit to the customer apart from SaaS services. Consulting and training services are generally considered a separate performance obligation as they are considered distinct services that provide a benefit to the customer on their own. Other Revenues The Company enters into referral and marketing agreements with various third parties, in which revenues for the Company are primarily generated from transactions initiated by the third parties’ customers. The Company may introduce its customers to a referral partner or offer additional services available from the referral partner via an integration with the Company’s software solutions. Other revenues are recognized in the period the services are performed, which can be either at a point in time or over time, depending on the nature of the contractual performance obligations. Identification of Performance Obligations and Determination of Transaction Price The Company enters into contracts with customers that often include multiple performance obligations, usually including multiple subscription and implementation services. For these contracts, the Company accounts for distinct individual performance obligations separately by allocating the contract’s total transaction price to each performance obligation in an amount based on the relative standalone selling price (“SSP”) of each distinct good or service in the contract. The Company’s determination of SSP for each distinct performance obligation in its contracts with its customers requires minimal judgment. Solutions are generally sold at standard prices and subscriptions are generally coterminous. Therefore, it is rare that any reallocation of transaction consideration is required. The Company’s best evidence of SSP is the observable price at which products and services are sold separately to customers, which is generally the stated contract price. Principal versus Agent The Company evaluates whether it is the principal (i.e., reports revenues on a gross basis) or agent (i.e., reports revenues on a net basis) with respect to the vendor reseller agreements pursuant to which the Company resells certain third-party solutions along with the Company’s solutions. Generally, the Company reports revenues from these types of contracts on a gross basis, meaning the amounts billed to customers are recorded as revenues and expenses incurred are recorded as cost of revenues. Where the Company is the principal, it first obtains control of the inputs to the specific service and directs their use to create the combined output. The Company’s control is evidenced by its involvement in the integration of the partners’ services with the Company’s solutions before the partners’ services are transferred to the Company’s customers and is further supported by the Company being primarily responsible to the customers, having a level of discretion in establishing pricing, and is subject to credit loss. In cases where the Company does not obtain control prior to the transfer of services, and acts as an agent, revenue is reported on a net basis, with costs being recorded as a reduction to revenues. Agent related revenue is recorded in subscription fees revenue on the Company’s consolidated statements of operations. Contract Balances and Deferred Revenue The timing of customer billing and payment relative to the start of the service period varies from contract to contract; however, the Company bills many of its customers in advance of the provision of services under its contracts, resulting in contract liabilities consisting of deferred revenue. Deferred revenue represents billings under noncancellable contracts before the related product or service is transferred to the customer. The Company records an unbilled receivable when revenue is recognized prior to invoicing. The deferred revenue balance consists of subscription and implementation fees which have been invoiced up front and are recognized as revenue only when the revenue recognition criteria are met. The Company’s subscription contracts are invoiced to its customers annually or monthly based on the underlying contractual terms, and revenue is recognized ratably over the service term. For any fees invoiced up front for contracts with a service term that extend multiple years, the portion of deferred revenue that will be recognized beyond 12 months from the date of the financial statements are classified as long-term deferred revenue. The payment terms and conditions vary by contract; however, the Company’s terms generally require payment within 30 days from the invoice date. In instances where the timing of revenue recognition differs from the timing of payment, the Company elected to apply the practical expedient to not adjust contract consideration for the effects of a significant financing component. The Company expects, at contract inception, that the period between when promised goods and services are transferred to the customer and when the customer pays for those goods and services will be one year or less. As such, the Company determined its contracts do not generally contain a significant financing component.
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| Costs Capitalized to Obtain Revenue Contracts | Costs Capitalized to Obtain Revenue Contracts The Company capitalizes sales commissions and related payroll benefits related to its customer agreements because the commission charges are so closely related to the revenues from the noncancellable customer agreements that they should be recorded as an asset and charged to expense over the expected period of customer benefit. The Company capitalizes commissions for those involved in the sale of its SaaS offerings, including direct employees and their supervisors, as these are incremental to the sale. The Company begins amortization for a particular customer agreement once the revenue recognition criteria are met and amortizes those capitalized costs over the expected period of customer benefit, which the Company estimates to be three years. The Company determined the period of benefit by considering factors such as historically high renewal rates with similar customers and contracts, initial contract length, an expectation that there will still be a demand for the product at the end of its term, and the significant costs to switch to a competitor's product, all of which are governed by the estimated useful life of the technology. Current costs are included in prepaid expenses and other current assets, and non-current costs are included in other assets on the accompanying consolidated balance sheets. The Company applies a practical expedient to expense costs to obtain revenue contracts as incurred when the amortization period would have been one year or less.
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| Research and Development | Research and Development Research and development expenses are comprised primarily of salaries, benefits and share-based compensation associated with the Company’s engineering, product, and quality assurance personnel. Research and development expenses also include third-party contractors and allocated overhead. Other than software development costs that qualify for capitalization, as discussed above, research and development costs are expensed as incurred.
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| Sales and Marketing | Sales and Marketing Sales and marketing expenses consist primarily of compensation and employee benefits, including share-based compensation, of sales and marketing personnel and related sales support teams, sales and partner commissions, trade show and advertising costs, and allocated overhead. Sales and marketing expenses also include amortization of costs capitalized to obtain revenue contracts, as discussed above. Marketing costs, including advertising and trade show expenses are expensed as incurred, and were $2.5 million, $1.5 million, and $1.4 million for the years ended December 31, 2024, 2023, and 2022, respectively.
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| Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation by estimating the fair value of share-based payment awards at the grant date. The Company estimates the fair value of its RSUs using the share price on the grant date and estimates the fair value of its share-based options using the Black-Scholes option-pricing model. The portion that is ultimately expected to vest is recognized as compensation expense over the requisite service period. Calculating share-based compensation expense for share-based options requires the input of assumptions, including the expected term of the share-based awards, share price volatility, risk free interest rates, and the expected dividend yield of the Company’s common stock. The assumptions used in calculating the fair value of share-based awards represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management’s judgment. The Company accounts for forfeitures when they occur. The Company has elected to recognize share-based compensation expense for service-based awards on a straight-line basis over the service vesting period. The Company recognizes compensation expense for awards subject to performance conditions using the graded attribution method over the vesting period so long as the performance measures are probable of being achieved.
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| Debt Issuance Costs | Debt Issuance Costs Debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company's debt. Debt issuance costs related to the Company’s term loan are netted against the Company's debt, and those related to the Company’s revolving credit facility are included in prepaid expenses and other current assets, and other assets. These amounts are amortized into interest expense over the estimated life of the debt using the effective interest method for the Company’s term loan and using the straight-line method for the Company’s revolving credit facility. The Company performs an analysis on a creditor-by-creditor basis when its debt is modified to determine if the debt instruments were substantially different. In the event of extinguishment, capitalized debt issuance costs are expensed. In the event of debt modification, lender related fees are capitalized, and third-party costs are expensed.
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| Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. If they are not, deferred tax assets are reduced by a valuation allowance. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is subsequently determined that deferred tax assets would be more likely than not realized in the future, in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company accounts for uncertainty in income taxes recognized in its consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized which includes (a) the tax position must be evaluated to determine the likelihood that it is more likely than not of being sustained based solely on the technical merits of the position, and if so, (b) the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The benefit from income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties.
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| Net (Loss) Income Per Share | Net (Loss) Income Per Share Basic net (loss) income per share is computed by dividing the net loss attributable to the common stockholders by the weighted average number of common stock outstanding during the period, without the consideration for potential dilutive common stock. Diluted net (loss) income per share is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock method.
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| Business Combinations | Business Combinations The results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. Transaction costs associated with business combinations are expensed as incurred and are included in acquisition related costs on the consolidated statements of operations. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates, and selection of comparable companies. The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with management’s determination of the fair values of assets acquired and liabilities assumed in a business combination. During the measurement period, if new information is obtained about facts and circumstances that existed as of the acquisition date, changes in the estimated fair values of the net assets recorded may change the amount of the purchase price allocated to goodwill. During the measurement period, which expires one year from the acquisition date, changes to any purchase price allocations that are material to the Company’s consolidated financial results will be adjusted prospectively.
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| Accounting Pronouncements Recently Adopted and Recent Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Recently Adopted The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) and has elected to use the extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies. ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” Accounting standard update (“ASU”) 2023-07 requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. The ASU also permits companies to disclose more than one measure of segment profit or loss, requires disclosure of the title and position of the Chief Operating Decision Maker, and requires companies with a single reportable segment to provide all disclosures required by Topic 280. The Company adopted this guidance for the year ended December 31, 2024 through providing enhanced segment disclosures within the notes to the consolidated financial statements. See Note 16, “Segment Information.” Recent Accounting Pronouncements Not Yet Adopted ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company for annual periods beginning after December 15, 2025, on a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. ASU 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” ASU 2024-03 requires disaggregated disclosure of income statement expenses into specified categories within the footnotes to the financial statements. ASU 2024-03 is effective for the Company for annual periods beginning after December 15, 2026, interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, and companies are required to apply the ASU prospectively or retrospectively. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
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Summary of Significant Accounting Policies (Tables) |
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| Schedule of Useful Lives by Asset Category | The Company records property and equipment at cost or fair market value on the acquisition date, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:
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Revenue Recognition (Tables) |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregation of Revenue by Solution Type and by Major Source | The following table disaggregates the Company’s net revenues by solution type (in thousands):
The following table disaggregates the Company’s net revenues by major source (in thousands):
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| Schedule of Contract Balances and Changes in Deferred Revenue | The following table presents amounts related to customer contract-related arrangements, which are included on the consolidated balance sheets as follows (in thousands):
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| Schedule of Rollforward of Allowance for Expected Credit Losses | A rollforward of the Company’s allowance for expected credit losses balance for the years ended December 31, 2024, and 2023, is as follows (in thousands):
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| Schedule of Changes in Assets Recognized | The following table represents the changes in costs capitalized to obtain revenue contracts (in thousands):
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Balance Sheet Components (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands):
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| Schedule of Capitalized Deferred Implementation Costs for Cloud Computing Arrangements | Capitalized cloud computing arrangement costs consisted of the following (in thousands):
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| Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands):
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| Schedule of Intangible Assets, Net and Weighted Average Remaining Useful Lives for Intangible Assets | Intangible assets, net consisted of the following (in thousands):
The weighted average remaining useful lives for intangible assets as of December 31, 2024, were as follows:
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| Schedule of Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets was as follows (in thousands):
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| Schedule of Estimated Future Amortization of Intangible Assets | The estimated future amortization of intangible assets as of December 31, 2024, was as follows (in thousands):
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| Schedule of Company's Goodwill | A rollforward of the Company’s goodwill balance for the years ended December 31, 2024 and 2023 was as follows (in thousands):
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| Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands):
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Future Minimum Payments Under Non-Cancelable Purchase Commitments | Future minimum payments under the Company’s non-cancelable purchase commitments as of December 31, 2024, are as follows (in thousands):
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Debt | Debt consisted of the following (in thousands):
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| Schedule of Future Principal Payments of Debt | Future principal payments of debt as of December 31, 2024, were as follows (in thousands):
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Stockholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Repurchased Share Activity | A summary of repurchased share activity during the years ended December 31, 2024, 2023, and 2022 is as follows (in thousands except share data):
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Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Stock Option Activity | A summary of stock option activity during the years ended December 31, 2024, 2023, and 2022 is as follows (in thousands, except options, price per option, and term amounts):
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| Schedule of Valuation Assumptions | The following assumptions were used by the Company to record compensation expense for performance-based and time-based options granted during the year ended December 31, 2022. No options were granted during the years ended December 31, 2024 or 2023 (dollars in thousands, except per option amounts):
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| Schedule of RSU Activity | A summary of RSU activity during the years ended December 31, 2024, 2023, and 2022 is as follows:
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| Schedule of Share-Based Compensation | Share-based compensation for share-based awards granted to participants has been recorded in the consolidated statements of operations for the years ended December 31, 2024, 2023, and 2022 as follows (in thousands):
(1)Net of $0.3 million, $0.3 million and $0.3 million additions to capitalized software for the years ended December 31, 2024, 2023, and 2022, respectively. (2)Relates to unvested stock compensation that was forfeited or accelerated as part of the 2024 Realignment Plan and 2023 Restructuring Plan. See Note 12, “Restructuring Activities.”
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes for the years ended December 31, 2024, 2023, and 2022 consisted of the following (in thousands):
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| Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differed from that computed at the federal statutory corporate income tax rate as follows for the years ended December 31, 2024, 2023, and 2022 (in thousands):
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| Schedule of Valuation Allowance | A rollforward of the Company’s valuation allowance for the years ended December 31, 2024 and 2023 was as follows (in thousands):
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| Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes at December 31, 2024, and 2023 consisted of the following (in thousands):
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Net Operating Loss and R&D Tax credit Carryforwards | Net operating loss (“NOL”) and research & development tax credit (“R&D”) carryforwards at December 31, 2024, and 2023 consisted of the following (in thousands):
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| Schedule of Unrecognized Tax Benefits | The reconciliation of unrecognized tax benefits at the beginning and end of the year was as follows (in thousands):
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Related Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Related Party Transactions | The following table presents the impact of related party transactions on the Company’s consolidated statements of operations (in thousands):
The following table presents the impact of related party transactions on the Company’s consolidated balance sheets (in thousands):
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Net (Loss) Income Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except share and per share data):
A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows:
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| Schedule of Outstanding Potentially Dilutive Securities | The following outstanding potentially dilutive securities were excluded from the calculation of diluted net loss per share attributable to common stockholders because their impact would have been anti-dilutive for the periods presented:
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Business Combinations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of the Allocation of the Purchase Price | The table below summarizes the allocation of the purchase price of OpenClose based on the estimated fair value of the assets acquired and the liabilities assumed (in thousands):
The table below summarizes the allocation of the purchase price of StreetShares based on the estimated fair value of the assets acquired and the liabilities assumed (in thousands):
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| Schedule of Fair Value of the Separately Identifiable Finite-Lived Intangible Assets Acquired and Estimated Useful Lives | The fair value of the separately identifiable finite-lived intangible assets acquired and estimated useful lives are as follows (in thousands, except years):
The fair value of the separately identifiable finite-lived intangible assets acquired and estimated useful lives are as follows (in thousands, except years):
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Rent Expense | Rent expense, gross of sublease income, has been recorded in the consolidated statements of operations for the years ended December 31, 2024, 2023, and 2022 as follows (in thousands):
The following table presents supplemental cash flow information about the Company’s leases (in thousands):
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| Schedule of Supplemental Balance Sheet Information about the Company's Leases | The following table presents supplemental balance sheet information about the Company’s leases (in thousands):
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| Schedule of Remaining Maturities of Lease Liabilities | As of December 31, 2024, remaining maturities of lease liabilities were as follows (in thousands):
(1)Presented gross of sublease income. The Company expects to receive sublease income of $0.2 million in 2025, and $0.2 million in 2026.
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenue and Expense Information for the Company’s Reportable Segment | The following table presents revenue and expense information for the Company’s reportable segment (in thousands):
(1)Other segment items includes share-based compensation, restructuring related costs, expenses associated with the Company’s public offering, litigation related charges, employer payroll taxes on employee stock transactions, expenses related to material weakness remediation, debt modification expenses, and acquisition related costs. It also includes interest income and other income.
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Summary of Significant Accounting Policies - Narrative (Details) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2024
USD ($)
segment
Reporting_Unit
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
| Number of operating segments | segment | 1 | ||
| Number of reportable segments | segment | 1 | ||
| initial term of contracts | 3 years | ||
| Extension period | 1 year | ||
| Cash equivalents at carrying value | $ | $ 0.0 | $ 66.8 | |
| Number of reporting units | Reporting_Unit | 1 | ||
| Contract with customer payment terms | 30 days | ||
| Contract with customer, period between timing of satisfaction of performance obligation and payment (in years) | 1 year | ||
| Expected period of amortization of deferred costs over expected period of customer benefit (in years) | 3 years | ||
| Advertising and tradeshow expenses | $ | $ 2.5 | $ 1.5 | $ 1.4 |
| Minimum | |||
| initial term of contracts | 1 year | ||
| Maximum | |||
| initial term of contracts | 7 years | ||
| Capitalized software | |||
| Useful life | 3 years | ||
| Cloud Computing Arrangements | Minimum | |||
| Useful life | 2 years | ||
| Cloud Computing Arrangements | Maximum | |||
| Useful life | 5 years | ||
Summary of Significant Accounting Policies - Schedule of Useful Lives by Asset Category (Detail) |
Dec. 31, 2024 |
|---|---|
| Computer equipment and software | Minimum | |
| Property, Plant and Equipment [Line Items] | |
| Property, plant and equipment, useful life (in years) | 3 years |
| Computer equipment and software | Maximum | |
| Property, Plant and Equipment [Line Items] | |
| Property, plant and equipment, useful life (in years) | 5 years |
| Office equipment and furniture | Minimum | |
| Property, Plant and Equipment [Line Items] | |
| Property, plant and equipment, useful life (in years) | 3 years |
| Office equipment and furniture | Maximum | |
| Property, Plant and Equipment [Line Items] | |
| Property, plant and equipment, useful life (in years) | 7 years |
Revenue Recognition - Schedule of Disaggregation of Revenue by Solution Type (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Disaggregation of Revenue [Line Items] | |||
| Revenues, net | $ 316,298 | $ 303,617 | $ 288,046 |
| Lending Software Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenues, net | 249,329 | 232,199 | 208,290 |
| Data Verification Software Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenues, net | $ 66,969 | $ 71,418 | $ 79,756 |
Revenue Recognition - Narrative (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Segment Reporting Information [Line Items] | |||
| Impairment of contract cost assets | $ 0 | $ 0 | $ 0 |
| Lending Software Solutions | |||
| Segment Reporting Information [Line Items] | |||
| Decrease in estimated variable consideration | $ 2,300,000 | ||
Revenue Recognition - Schedule of Disaggregation of Revenue by Major Source (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Disaggregation of Revenue [Line Items] | |||
| Revenues, net | $ 316,298 | $ 303,617 | $ 288,046 |
| Subscription fees | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenues, net | 264,410 | 256,787 | 248,864 |
| Professional services | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenues, net | 39,477 | 36,250 | 29,320 |
| Other | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenues, net | $ 12,411 | $ 10,580 | $ 9,862 |
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|---|---|---|---|
| Revenue Recognition and Deferred Revenue [Abstract] | |||
| Accounts receivable, net | $ 34,422 | $ 32,412 | $ 32,905 |
| Deferred revenue, current | 17,170 | 17,224 | 16,945 |
| Long-term deferred revenue | $ 75 | $ 792 | $ 1,141 |
Revenue Recognition - Schedule of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Contract With Customer, Liability [Roll Forward] | |||
| Deferred revenue, beginning balance | $ 18,016 | $ 18,086 | |
| Billing of transaction consideration | 315,527 | 303,547 | |
| Revenue recognized | (316,298) | (303,617) | |
| Deferred revenue, ending balance | 17,245 | 18,016 | |
| Deferred revenue, current | 17,170 | 17,224 | |
| Long-term deferred revenue | 75 | 792 | $ 1,141 |
| Total deferred revenue | $ 17,245 | $ 18,016 | $ 18,086 |
Revenue Recognition - Schedule of Rollforward of Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
| Allowance for expected credit losses, beginning balance | $ 514 | $ 165 | |
| Provision for expected credit losses | 778 | 930 | $ 0 |
| Write offs, net | (542) | (581) | |
| Allowance for expected credit losses, ending balance | $ 750 | $ 514 | $ 165 |
Revenue Recognition - Schedule of Changes in Assets Recognized (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Capitalized Contract Cost [Roll Forward] | |||
| Beginning balance | $ 8,018 | $ 6,539 | |
| Additions | 5,550 | 4,821 | |
| Amortization | (4,056) | (3,342) | $ (2,563) |
| Ending balance | 9,512 | 8,018 | 6,539 |
| Costs capitalized to obtain revenue contracts, current | 4,362 | 3,782 | |
| Costs capitalized to obtain revenue contracts, net, noncurrent | 5,150 | 4,236 | |
| Total costs capitalized to obtain revenue contracts, net | $ 9,512 | $ 8,018 | $ 6,539 |
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Prepaid expenses | $ 5,598 | $ 5,762 |
| Costs capitalized to obtain revenue contracts, current | 4,362 | 3,782 |
| Income tax receivable | 614 | 961 |
| Other | 399 | 1,069 |
| Total prepaid expenses and other current assets | $ 10,973 | $ 11,574 |
Balance Sheet Components - Schedule of Capitalized Deferred Implementation Costs for Cloud Computing Arrangements (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Capitalized cloud computing arrangement costs | $ 2,299 | $ 1,779 |
| Accumulated amortization | (303) | (208) |
| Capitalized cloud computing arrangement costs, net | $ 1,996 | $ 1,571 |
Balance Sheet Components - Narrative (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
| Amortization expense for capitalized deferred implementation costs | $ 0 | $ 0 | $ 0 |
| Depreciation | 1,358,000 | 1,860,000 | 2,318,000 |
| Impairment of long-lived assets | 0 | 0 | 0 |
| Impairment loss | 0 | 0 | 0 |
| Capitalized software | |||
| Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
| Capitalized software costs | $ 7,400,000 | $ 9,600,000 | $ 8,500,000 |
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Total | $ 11,316 | $ 12,516 |
| Accumulated depreciation | (9,149) | (9,179) |
| Property and equipment, net | 2,167 | 3,337 |
| Computer equipment and software | ||
| Property, Plant and Equipment [Line Items] | ||
| Total | 7,902 | 8,794 |
| Leasehold improvements | ||
| Property, Plant and Equipment [Line Items] | ||
| Total | 2,424 | 2,732 |
| Office equipment and furniture | ||
| Property, Plant and Equipment [Line Items] | ||
| Total | $ 990 | $ 990 |
Balance Sheet Components - Schedule of Weighted Average Remaining Useful Lives for Intangible Assets (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Customer relationships | |
| Finite-Lived Intangible Assets [Line Items] | |
| Weighted Average Remaining Useful Life (in years) | 5 years |
| Developed technology | |
| Finite-Lived Intangible Assets [Line Items] | |
| Weighted Average Remaining Useful Life (in years) | 6 years |
| Trademarks | |
| Finite-Lived Intangible Assets [Line Items] | |
| Weighted Average Remaining Useful Life (in years) | 4 years |
| Non-competition agreements | |
| Finite-Lived Intangible Assets [Line Items] | |
| Weighted Average Remaining Useful Life (in years) | 3 years |
| Capitalized software | |
| Finite-Lived Intangible Assets [Line Items] | |
| Weighted Average Remaining Useful Life (in years) | 2 years |
Balance Sheet Components - Schedule of Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Finite-Lived Intangible Assets [Line Items] | |||
| Total amortization expense | $ 56,894 | $ 55,969 | $ 51,663 |
| Cost of revenues | |||
| Finite-Lived Intangible Assets [Line Items] | |||
| Total amortization expense | 19,255 | 18,129 | 15,553 |
| General and administrative expense | |||
| Finite-Lived Intangible Assets [Line Items] | |||
| Total amortization expense | $ 37,639 | $ 37,840 | $ 36,110 |
Balance Sheet Components - Schedule of Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| 2025 | $ 52,490 | |
| 2026 | 46,688 | |
| 2027 | 43,553 | |
| 2028 | 24,925 | |
| 2029 | 13,327 | |
| Thereafter | 20,539 | |
| Total amortization expense | $ 201,522 | $ 251,060 |
Balance Sheet Components - Schedule of Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Goodwill [Roll Forward] | |||
| Beginning balance | $ 610,063 | $ 608,657 | |
| Purchase price allocation adjustment for Beanstalk Networks LLC acquisition | 0 | 274 | $ 0 |
| Ending balance | 610,063 | 610,063 | $ 608,657 |
| Beanstalk Networks, L.L.C. (OpenClose) | |||
| Goodwill [Roll Forward] | |||
| Purchase price allocation adjustment for Beanstalk Networks LLC acquisition | 0 | 274 | |
| StreetShares | |||
| Goodwill [Roll Forward] | |||
| Purchase price allocation adjustment for Beanstalk Networks LLC acquisition | $ 0 | $ 1,132 | |
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Accrued payroll and payroll-related expenses | $ 8,188 | $ 9,501 |
| Accrued bonuses | 6,313 | 6,424 |
| Accrued operating costs | 4,127 | 3,655 |
| Sales tax liabilities from acquisitions | 3,383 | 3,383 |
| Accrued costs of revenues | 2,305 | 2,003 |
| User conference accrual | 979 | 1,073 |
| Customer deposits | 795 | 1,302 |
| Excise taxes payable | 537 | 379 |
| Operating lease liabilities – current | 676 | 773 |
| Other accrued liabilities | 2,080 | 2,180 |
| Total accrued liabilities | $ 29,383 | $ 30,673 |
Commitments and Contingencies - Narrative (Details) $ in Millions |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
USD ($)
| |
| Commitments and Contingencies Disclosure [Abstract] | |
| Settlement charges incurred | $ 1.5 |
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Purchase Commitments (Details) $ in Thousands |
Dec. 31, 2024
USD ($)
|
|---|---|
| Commitments and Contingencies Disclosure [Abstract] | |
| 2025 | $ 4,253 |
| 2026 | 4,684 |
| 2027 | 4,188 |
| Thereafter | 0 |
| Total | $ 13,125 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Term Loan | $ 472,728 | $ 427,388 |
| Debt issuance costs | (4,128) | (3,842) |
| Total debt, net of debt issuance costs | 468,600 | 423,546 |
| Current portion of long term debt | 3,678 | 3,542 |
| Debt issuance costs | (1,085) | (808) |
| Total long-term debt, net of debt issuance costs | 464,922 | 420,004 |
| Secured Debt | 2021 Term Loan | ||
| Debt Instrument [Line Items] | ||
| Current portion of long term debt | $ 4,763 | $ 4,350 |
Debt - Schedule of Future Principal Payments of Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Debt Disclosure [Abstract] | ||
| 2025 | $ 4,763 | |
| 2026 | 4,763 | |
| 2027 | 4,763 | |
| 2028 | 458,439 | |
| Total | $ 472,728 | $ 427,388 |
Stockholders' Equity - Schedule of Repurchased Share Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
Feb. 09, 2024 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Stockholders' Equity Note [Abstract] | ||||
| Total number of shares repurchased (in shares) | 5,328,913 | 3,663,732 | 237,641 | |
| Total cost of shares repurchased, including commissions, fees, and excise taxes | $ 44,400 | $ 105,408 | $ 61,548 | $ 3,375 |
Share-Based Compensation - Schedule of Valuation Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2022 |
|
| Share-Based Payment Arrangement [Abstract] | ||
| Aggregate grant date fair value of options granted | $ 7,989 | |
| Assumptions for option valuation: | ||
| Minimum expected volatility | 47.30% | |
| Maximum expected volatility | 62.00% | |
| Expected dividend yield | 0.00% | 0.00% |
| Minimum expected risk-free interest rate | 1.70% | |
| Maximum expected risk-free interest rate | 3.40% | |
| Expected term of options | 6 years | |
| Maximum contractual term | 10 years | |
| Weighted average grant date fair value per option (in dollars per share) | $ 8.61 | |
Share-Based Compensation - Schedule of RSU Activity (Details) - $ / shares |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Number of RSUs | |||
| Non-vested ending balance (in shares) | 6,472,758 | ||
| Restricted Stock Units (RSUs) | |||
| Number of RSUs | |||
| Non-vested beginning balance (in shares) | 4,919,744 | 3,111,831 | 1,073,529 |
| Granted (in shares) | 5,296,177 | 3,639,647 | 2,827,328 |
| Vested, not released (in shares) | (296,544) | ||
| Vested (in shares) | (2,390,289) | (1,055,665) | (398,407) |
| Forfeited (in shares) | (1,056,330) | (776,069) | (390,619) |
| Non-vested ending balance (in shares) | 6,472,758 | 4,919,744 | 3,111,831 |
| Weighted Average Grant Date Fair Value | |||
| Non-vested beginning balance (in dollars per share) | $ 17.19 | $ 19.27 | $ 25.76 |
| Granted (in dollars per share) | 19.67 | 16.35 | 17.91 |
| Vested, not released (in dollars per share) | 22.18 | ||
| Vested (in dollars per share) | 17.75 | 19.26 | 25.79 |
| Forfeited (in dollars per share) | 17.44 | 18.78 | 20.66 |
| Non-vested ending balance (in dollars per share) | $ 18.78 | $ 17.19 | $ 19.27 |
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Current: | |||
| Federal | $ 91 | $ 142 | $ 385 |
| State | 353 | 171 | 1,840 |
| Total current | 444 | 313 | 2,225 |
| Deferred: | |||
| Federal | 595 | 15,609 | 1,822 |
| State | (131) | 8,021 | 83 |
| Total deferred | 464 | 23,630 | 1,905 |
| Provision for income taxes | $ 908 | $ 23,943 | $ 4,130 |
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Income Tax Disclosure [Abstract] | |||
| Tax (benefit) expense computed at federal statutory rate | $ (6,061) | $ (3,905) | $ 1,139 |
| State income tax (benefit) expense, net of federal (benefit) expense | (285) | (32) | 1,177 |
| Nondeductible share-based compensation | (992) | 127 | 803 |
| Certain employee remuneration | 3,703 | 1,842 | 1,038 |
| Other nondeductible expenses | 586 | 94 | 348 |
| Valuation allowance | 5,291 | 29,405 | 0 |
| Rate change | (49) | 55 | 66 |
| Research and development credits | (1,202) | (3,606) | (1,550) |
| Expiration of share-based compensation | 209 | 1,037 | 0 |
| Acquisition related U.S. State operating losses | (30) | (1,205) | 0 |
| Other return to provision adjustments | (262) | 131 | 293 |
| Tax attribute write-off | 0 | 0 | 484 |
| Amended return | 0 | 0 | 332 |
| Provision for income taxes | $ 908 | $ 23,943 | $ 4,130 |
Income Taxes - Schedule of Valuation Allowance (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Valuation Allowance [Roll Forward] | ||
| Valuation allowance, beginning balance | $ 29,405 | $ 0 |
| Additions | 5,291 | 29,405 |
| Deductions | 0 | |
| Valuation allowance, ending balance | $ 34,696 | $ 29,405 |
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|---|---|---|---|
| Deferred tax assets: | |||
| Net operating losses | $ 15,171 | $ 17,489 | |
| Capitalized research and development | 16,028 | 12,466 | |
| Tax credit carryforwards | 8,809 | 8,135 | |
| Share-based compensation | 4,315 | 3,795 | |
| Interest expense carryover | 17,059 | 10,117 | |
| Transaction costs | 2,118 | 2,357 | |
| Property and equipment | 175 | 243 | |
| Other | 1,992 | 1,919 | |
| Total deferred tax assets | 65,667 | 56,521 | |
| Valuation allowance | (34,696) | (29,405) | $ 0 |
| Total deferred tax assets, net | 30,971 | 27,116 | |
| Deferred tax liabilities: | |||
| Costs capitalized to obtain revenue contracts | (2,434) | (2,059) | |
| Goodwill and intangible assets | (39,468) | (35,470) | |
| Right of use assets, net | (280) | (293) | |
| Debt issuance costs | (75) | (117) | |
| Total deferred tax liabilities | (42,257) | (37,939) | |
| Net deferred tax liabilities | $ (11,286) | $ (10,823) |
Income Taxes - Schedule of Net Operating Loss and R&D Tax credit Carryforwards (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Federal | ||
| Operating Loss Carryforwards [Line Items] | ||
| NOL carryforwards | $ 54,789 | $ 67,391 |
| Federal | R&D tax credit carryforward | ||
| Operating Loss Carryforwards [Line Items] | ||
| R&D tax credit carryforwards | 8,479 | 7,872 |
| State | ||
| Operating Loss Carryforwards [Line Items] | ||
| NOL carryforwards | 60,151 | 54,078 |
| State | R&D tax credit carryforward | ||
| Operating Loss Carryforwards [Line Items] | ||
| R&D tax credit carryforwards | $ 5,022 | $ 4,490 |
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
| Beginning balance | $ (3,535) | $ (2,451) | $ (1,942) |
| Gross decrease related to prior year positions | 58 | 86 | |
| Gross decrease (increase) related to prior year positions | (176) | ||
| Gross increase related to current year positions | (466) | (908) | (595) |
| Ending balance | $ (3,943) | $ (3,535) | $ (2,451) |
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Related Party Transaction [Line Items] | |||
| Cost of revenues | $ 89,273 | $ 90,362 | $ 90,778 |
| General and administrative | 116,458 | 92,663 | 82,649 |
| Research and development | 39,454 | 47,517 | 42,592 |
| Sales and marketing | 43,182 | 35,792 | 23,658 |
| Prepaid expenses and other current assets | 10,973 | 11,574 | |
| Total current assets | 138,160 | 124,427 | |
| Accounts payable | 6,798 | 4,405 | |
| Accrued liabilities | 29,383 | 30,673 | |
| Total current liabilities | 57,029 | 55,844 | |
| Related Party | |||
| Related Party Transaction [Line Items] | |||
| Cost of revenues | 1,730 | 1,558 | 2,128 |
| General and administrative | 301 | 730 | 824 |
| Research and development | 107 | 272 | 273 |
| Sales and marketing | 0 | 1 | 92 |
| Total related party expenses | 2,138 | 2,561 | $ 3,317 |
| Prepaid expenses and other current assets | 77 | 38 | |
| Total current assets | 77 | 38 | |
| Accounts payable | 294 | 110 | |
| Accrued liabilities | 167 | 243 | |
| Total current liabilities | $ 461 | $ 353 | |
Related Party Transactions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
Sep. 07, 2023 |
Dec. 31, 2024 |
Jan. 31, 2024 |
Sep. 08, 2023 |
May 31, 2022 |
|---|---|---|---|---|---|
| Related Party Transaction [Line Items] | |||||
| Stock repurchase program authorized amount | $ 125.0 | $ 75.0 | |||
| Related Party | |||||
| Related Party Transaction [Line Items] | |||||
| Shares repurchased by stockholder (shares) | 0 | 1,525,027 | |||
| Average price per share (in dollars per share) | $ 16.43 | ||||
| Stock repurchase program authorized amount | $ 25.0 | ||||
| Discount on stock repurchase (as a percent) | 5.00% |
Restructuring Activities - Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Jan. 31, 2024 |
Feb. 28, 2023 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Restructuring Cost and Reserve [Line Items] | |||||
| Restructuring related costs | $ 4,040 | $ 3,621 | $ 0 | ||
| The 2024 Realignment Plan | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Reduction in current workforce (as a percent) | 12.00% | ||||
| The 2024 Realignment Plan | Severance and Related Costs | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Restructuring related costs | $ 4,000 | ||||
| 2023 Restructuring Plan | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Reduction in current workforce (as a percent) | 11.00% | ||||
| 2023 Restructuring Plan | Severance and Related Costs | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Restructuring related costs | 3,600 | ||||
| 2023 Restructuring Plan | Previously Vested Stock Based Compensation | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Restructuring related costs | $ 700 | ||||
Leases - Narrative (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Leases [Abstract] | |||
| Weighted average remaining lease term | 2 years | ||
| Weighted average discount rate | 6.70% | ||
| Sublease income | $ 200,000 | $ 300,000 | $ 400,000 |
| Impairment of right of use assets | $ 0 | $ 0 | $ 0 |
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Schedule Of Rent Expense [Line Items] | |||
| Rent expense | $ 906 | $ 1,470 | $ 1,799 |
| Cost of revenues | |||
| Schedule Of Rent Expense [Line Items] | |||
| Rent expense | 512 | 569 | 720 |
| General and administrative | |||
| Schedule Of Rent Expense [Line Items] | |||
| Rent expense | 86 | 68 | 260 |
| Research and development | |||
| Schedule Of Rent Expense [Line Items] | |||
| Rent expense | 163 | 635 | 579 |
| Sales and marketing | |||
| Schedule Of Rent Expense [Line Items] | |||
| Rent expense | $ 145 | $ 198 | $ 240 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Leases [Abstract] | |||
| Cash paid for amounts included in the measurement of lease liabilities | $ 1,080 | $ 1,323 | $ 2,008 |
| Operating lease assets obtained in exchange for new operating lease liabilities | $ 592 | $ 0 | $ 1,033 |
Leases - Supplemental Balance Sheet Information About The Company's Leases (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Leases [Abstract] | ||
| Operating lease ROU assets | $ 1,095 | $ 1,140 |
| Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
| Operating lease liabilities – current | $ 676 | $ 773 |
| Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
| Noncurrent operating lease liabilities | $ 490 | $ 504 |
| Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities, Other long-term liabilities | Accrued liabilities, Other long-term liabilities |
| Total operating lease liabilities | $ 1,166 | $ 1,277 |
Leases - Schedule of Remaining Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Other Commitments [Line Items] | |||||
| 2025 | $ 681 | ||||
| 2026 | 439 | ||||
| 2027 | 123 | ||||
| Thereafter | 0 | ||||
| Total operating lease payments | 1,243 | ||||
| Less: imputed interest | (77) | ||||
| Total operating lease liabilities | 1,166 | $ 1,277 | |||
| Sublease income | $ 200 | $ 300 | $ 400 | ||
| Forecast | |||||
| Other Commitments [Line Items] | |||||
| Sublease income | $ 200 | $ 200 | |||
Employee Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Retirement Benefits [Abstract] | |||
| Employer matching contributions | $ 1.6 | $ 1.6 | $ 1.4 |
Segment Information - Narrative (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
segment
| |
| Segment Reporting [Abstract] | |
| Number of reportable segments | 1 |
| Number of operating segments | 1 |
Segment Information - Schedule of Revenue and Expense Information for the Company’s Reportable Segment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Segment Reporting Information [Line Items] | |||
| Revenues, net | $ 316,298 | $ 303,617 | $ 288,046 |
| Interest expense | 38,424 | 38,158 | 24,227 |
| Provision for income taxes | 908 | 23,943 | 4,130 |
| Operating income | 4,636 | 15,533 | 28,588 |
| Reportable Segment | |||
| Segment Reporting Information [Line Items] | |||
| Revenues, net | 316,298 | 303,617 | 288,046 |
| Adjusted subscription and services | 84,291 | 86,357 | 86,021 |
| Adjusted general and administrative | 40,761 | 36,261 | 34,640 |
| Adjusted research and development | 29,408 | 40,268 | 36,018 |
| Adjusted sales and marketing | 35,886 | 31,848 | 21,458 |
| Other segment items | 58,140 | 31,492 | 26,276 |
| Depreciation and amortization of intangible assets | 58,252 | 57,829 | 53,982 |
| Interest expense | 38,424 | 38,158 | 24,227 |
| Provision for income taxes | 908 | 23,943 | 4,130 |
| Operating income | $ (29,772) | $ (42,539) | $ 1,294 |
Subsequent Events (Details) - USD ($) $ in Millions |
Feb. 28, 2025 |
Jan. 31, 2024 |
May 31, 2022 |
|---|---|---|---|
| Subsequent Event [Line Items] | |||
| Stock repurchase program authorized amount | $ 125.0 | $ 75.0 | |
| Subsequent Event | |||
| Subsequent Event [Line Items] | |||
| Stock repurchase program authorized amount | $ 129.5 |