0001558370-25-001820 | 10-K | XBRL Viewer

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INCOME TAXES - Changes in valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
INCOME TAXES
Valuation allowance, at beginning of year	$ (5,941)	$ (2,285)	$ (1,839)
Increase in valuation allowance recorded through earnings	(68,377)	(3,656)	(624)
Decrease in valuation allowance recorded through earnings	2,033		178
Valuation allowance, at end of year	$ (72,285)	$ (5,941)	$ (2,285)

INVESTMENTS - Amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Investment securities available for sale:
Amortized Cost	$ 11,140	$ 10,797
Gross Unrealized Gain	14
Gross Unrealized Loss	(1)	(8)
Allowance For Credit Losses	0	0
Fair Value	11,153	10,789
Commercial paper
Investment securities available for sale:
Amortized Cost	4,920	7,169
Gross Unrealized Loss		(1)
Fair Value	4,920	7,168
Corporate bonds
Investment securities available for sale:
Amortized Cost	250
Fair Value	250
U.S. Treasury securities
Investment securities available for sale:
Amortized Cost	5,970	3,628
Gross Unrealized Gain	14
Gross Unrealized Loss	(1)	(7)
Fair Value	$ 5,983	$ 3,621

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segments and Concentration of Credit Risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) segment item	Dec. 31, 2023 USD ($)	Dec. 31, 2022
Segment information:
Operating segments \| segment	1
Number of banks \| item	4
Property and equipment \| $	$ 177,559	$ 100,734
Number of reporting units \| item	1
Outside of the United States
Segment information:
Property and equipment \| $	$ 687	$ 827
Revenue \| No customer concentration more than 10% \| Outside of the United States
Segment information:
Risk percentage	0.00%	0.00%	0.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Systax	Dec. 31, 2024	Jun. 05, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jan. 07, 2020
Summary of significant accounting policies
Equity interest held by entity before the acquisition date			80.00%	65.00%
Equity interest acquired	20.00%	20.00%	15.00%		5.00%	60.00%

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2024

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

5. Financial instruments and fair value measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s fair value for its financial assets and liabilities measured at fair value on a recurring basis:


	Fair Value Measurements Using
As of December 31, 2024	Fair Value		Prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Money Market Funds	$	276,374	$	276,374	$	—	$	—
Commercial Paper		4,920		—		4,920		—
Corporate Bonds		250		—		250		—
U.S. Treasury Securities		5,983		—		5,983		—
ecosio Cash Earn-outs		74,400		—		—		74,400
ecosio Stock Earn-outs		48,100		—		—		48,100
	Fair Value Measurements Using
As of December 31, 2023	Fair Value		Prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Money Market Funds	$	53,049	$	53,049	$	—	$	—
Commercial Paper		7,168		—		7,168		—
U.S. Treasury Securities		3,621		—		3,621		—
Tellutax Contingent Consideration		4,900		—		—		4,900
Foreign Currency Forward Contracts		849		—		849		—

The Company has investments in Money Market Funds, which are included in cash and cash equivalents on the consolidated balance sheets. Fair value inputs for these investments are considered Level 1 measurements within the Fair Value Hierarchy since Money Market Fund fair values are known and observable through daily published floating net asset values. Securities classified as available-for-sale are reported at fair value using Level 2 inputs. For the Commercial Paper, Corporate Bonds, and U.S. Treasury Securities, the Company believes that Level 2 designation is appropriate under ASC 820-10, Fair Value Measurements and Disclosures, as these securities are fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade

execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors.

ecosio Earn-outs

In connection with the August 2024 ecosio acquisition, the sellers are entitled to three annual Earn-outs based on ecosio’s achievement of certain monthly software revenue targets measured over an aggregate of 12 months and paid within 90 days after the relevant measurement period. The fair values of the Cash Earn-outs and the Stock Earn-outs were measured on the Acquisition Date using a Monte Carlo simulation in a risk-neutral framework, calibrated to management’s revenue forecasts. Additional information on the Cash Earn-outs and the Stock Earn-outs is presented in the following table below.


	Maximum		Fair Value		Fair Value
Cash Earn-outs/ Period	Payout		December 31, 2024		at Acquisition Date
Year 1 - December 1, 2024 - December 1, 2025	$	19,600	$	17,900	$	16,700
Year 2 - December 1, 2025 - December 1, 2026		30,625		24,400		23,200
Year 3 - December 1, 2026 - December 1, 2027		44,130		32,100		31,100
Total Cash Earn-outs	$	94,355	$	74,400	$	71,000
	Maximum		Fair Value		Fair Value
Stock Earn-outs/ Period	Payout ⁽¹⁾		December 31, 2024		at Acquisition Date
Year 1 - December 1, 2024 - December 1, 2025	$	12,000	$	17,200	$	12,200
Year 2 - December 1, 2025 - December 1, 2026		12,000		16,300		11,400
Year 3 - December 1, 2026 - December 1, 2027		11,000		14,600		10,400
Total Stock Earn-outs	$	35,000	$	48,100	$	34,000
⁽¹⁾ Maximum payout based on Vertex's August 6, 2024 opening share price of $37.02, as referenced in the purchase agreement.

Actual payouts are further adjusted depending on ecosio’s software revenue attainment for each of the measurement periods. In the event that actual software revenues exceed 100% of the target, additional payments may be made up to a maximum of 122.5% of the annual target. If actual software revenues are below 85% of the target, no payouts are made for that measurement period. The Stock Earn-outs are paid in shares of the Company’s Class A common stock.

These Earn-outs represent recurring fair value measurements with significant unobservable inputs, which management considers to be Level 3 measurements under the fair value hierarchy. The final payments may be adjusted depending on the actual amount, above or below the target. Both the Cash Earn-outs and the Stock Earn-outs are recorded at fair value and are included in purchase commitment and contingent consideration liabilities, net of current portion in the consolidated balance sheets. The Earn-outs will be revalued and adjusted quarterly until the end of the Earn-out periods, and any fair value adjustments will be recorded in the change in fair value of acquisition contingent earn-outs line of the consolidated statement of loss.

Adjustments to the fair values of the Cash Earn-outs and the Stock Earn-outs of $3,400 and $14,100, respectively, were recorded in change in fair value of acquisition contingent earn-outs for the year ended December 31, 2024. At December 31, 2024, the Cash Earn-outs and the Stock Earn-outs of $17,900 and $17,200, respectively, are included in purchase commitment and contingent consideration liabilities, current in the consolidated balance sheets. At December 31, 2024, the Cash Earn-outs and the Stock Earn-outs of $56,500 and $30,900, respectively, are included in the purchase commitment and contingent consideration liabilities, net of current portion in the consolidated balance sheets.

The fair values of the Cash Earn-outs and the Stock Earn-outs as of December 31, 2024 and the Acquisition Date, and unobservable inputs used for the Monte Carlo Simulation valuation, are shown in the tables below:


	December 31, 2024
Liabilities	Fair Value		Valuation Technique	Unobservable Inputs
ecosio Contingent Consideration - Cash Earn-outs	$	74,400	Monte Carlo Simulation	Revenue volatility	21.0	%
				Revenue discount rate	7.7	%
				Term (in years)	3.2

ecosio Contingent Consideration - Stock Earn-outs	$	48,100	Monte Carlo Simulation	Revenue volatility	21.0	%
				Revenue discount rate	7.7	%
				Term (in years)	3.2

	Acquisition Date
Liabilities	Fair Value		Valuation Technique	Unobservable Inputs
ecosio Contingent Consideration - Cash Earn-outs	$	71,000	Monte Carlo Simulation	Revenue volatility	21.0	%
				Revenue discount rate	7.6	%
				Term (in years)	3.5

ecosio Contingent Consideration - Stock Earn-outs	$	34,000	Monte Carlo Simulation	Revenue volatility	21.0	%
				Revenue discount rate	7.6	%
				Term (in years)	3.5

Tellutax, LLC Contingent Consideration

The 2021 Tellutax, LLC (“Tellutax”) acquisition entitled the sellers to contingent consideration if sales targets are met during a period of time following the acquisition (the “Tellutax Contingent Consideration”). The estimated fair value of the Tellutax Contingent Consideration as of the acquisition date of January 25, 2021 was $2,200.

The Tellutax Contingent Consideration was based on three potential earn-out payments determined by periodic revenue achievements over a thirty-month period. Such estimates represented recurring fair value measurements with significant unobservable inputs, which management considered to be Level 3 measurements under the Fair Value Hierarchy. The significant assumptions used in these calculations included forecasted results and the estimated likelihood for each performance scenario. The fair value of Tellutax Contingent Consideration was estimated using a Monte Carlo Simulation to compute the expected cash flows from earn-out payments specified in the purchase agreement. The earn-out payments had no maximum limit, but when certain targets were not met, there was no earn-out payment for the applicable measurement period.

Adjustments to the Tellutax Contingent Consideration fair value of $(2,575), $1,549, and $2,300 were recorded in other operating expense, net for the years ended December 31, 2024, 2023, and 2022, respectively. At December 31, 2024, the Tellutax Contingent Consideration balance was $0. At December 31, 2023, the Tellutax Contingent Consideration of $2,300 and $2,600 is included in purchase commitment and contingent consideration liabilities, current, and purchase

commitment and contingent consideration liabilities, net of current portion, respectively, in the consolidated balance sheets.

Tellutax Contingent Consideration fair value and unobservable inputs used for the Monte Carlo Simulation valuation were as follows:


	December 31, 2023
Liability	Fair Value		Valuation Technique	Unobservable Inputs
Tellutax Contingent Consideration	$	4,900	Monte Carlo Simulation	Revenue volatility	60.0	%
				Revenue discount rate	20.8	%
				Term (in years)	1.3

Beginning and ending balances in fair value of the Company’s Level 3 liabilities were as follows:


	Tellutax		ecosio		ecosio
	Contingent		Contingent Consideration		Contingent Consideration
	Consideration		Cash Earn-outs		Stock Earn-outs
Balance, January 1, 2022	$	2,500	$	—	$	—
Fair value adjustments		2,300		—		—
Balance, December 31, 2022		4,800		—		—
Fair value adjustments		1,549		—		—
Payments		(1,449)		—		—
Balance, December 31, 2023		4,900		—		—
ecosio acquisition (Note 3)		—		71,000		34,000
Fair value adjustments		(2,575)		3,400		14,100
Payments		(2,325)		—		—
Balance, December 31, 2024	$	—	$	74,400	$	48,100

Assets and Liabilities for Which Fair Value is Only Disclosed

The carrying amounts of cash and cash equivalents and the carrying amount of funds held for customers were the same as their respective fair values and are considered Level 1 measurements.

The carrying amount of our bank debt approximates fair value as the variable rates on the debt approximate those commercially available in the market, and is considered a Level 3 measurement.

Non-recurring Fair Value Measurements

The ecosio acquisition on August 30, 2024, the Tellutax acquisition on January 25, 2021, and the Systax acquisition on January 10, 2020, were accounted for as business combinations and the total purchase price for each acquisition was allocated to the net assets acquired and liabilities assumed based on their estimated fair values.

On January 7, 2020, the Company acquired a 60% controlling interest in Systax, a provider of Brazilian transaction tax content and software. The Company had a contractual commitment to acquire the remaining equity interest from the original Systax Quotaholders incrementally through 2024. Purchase commitment payments for these incremental acquisition amounts were based on a multiple of Systax revenue and earnings before interest, depreciation, amortization, and income taxes (“EBITDA”) performance at the end of 2022 and 2023. Management determined these incremental purchase commitments to be a forward contract, resulting in the Company being required to estimate and record an estimated future purchase commitment amount (the “Purchase Commitment Liability”) in connection with recording the initial purchase. The fair value of the Purchase Commitment Liability at the acquisition date was finalized to be $12,592. This amount has fluctuated as a result of changes in foreign currency exchange rates and was reflected in purchase commitment and contingent consideration liabilities in the consolidated balance sheets, with such changes in exchange rates being reflected in other comprehensive loss or income in the consolidated statements of comprehensive loss. Adjustments to the settlement date value that arose as a result of remeasurement at each balance sheet were recorded as interest expense related to financing costs in the consolidated statements of comprehensive loss in the period the change was identified. The Company recorded increases in interest expense of $423, $4,020 and $990 during 2024, 2023, and 2022, respectively, associated with recording an increase in the settlement value.

The Company acquired an additional 5% equity interest of Systax during 2021 for $788, increasing the Company’s equity interest in Systax to 65%. The Company acquired an additional 15% equity interest of Systax through a Purchase Commitment Liability payment of $4,975 during 2023, increasing the Company’s equity interest in Systax to 80%. During the year ended December 31, 2024, the Company paid $9,622 to acquire the remaining 20% equity interest of Systax, which increased the Company’s ownership percentage of Systax to 100%, and settled the outstanding Purchase Commitment Liability.

The Purchase Commitment Liability at December 31, 2023 included in purchase commitment and contingent consideration liabilities, current, in the consolidated balance sheets was $9,601. The carrying amount approximated its respective fair value at December 31, 2023 and was considered a Level 3 non-recurring fair value measurement.

The Company estimated the initial fair value of the Purchase Commitment Liability using a Monte Carlo Simulation, which the Company considers to be a Level 3 measurement. The significant assumptions used in the Monte Carlo Simulation include, among other variables, forecasted cash flow projections consistent with those used to support the overall purchase price, selection of comparable companies, asset volatility and discount rate determinations, and the total number of simulations to compute.

Derivative Instruments

The Company may periodically enter into derivative contracts to reduce its exposure to foreign currency exchange rates. Historically the Company has not designated derivative contracts as hedges. The derivative contracts are typically designed to manage specific risks according to the Company’s strategies, which may change from time to time.

The Company entered into a series of foreign currency forward contracts to reduce its exposure to adverse fluctuations in the Brazilian Real associated with a portion of the Purchase Commitment Liability. Such forward contracts, were not designated as a hedge, did not qualify for hedge accounting and were not material to the consolidated financial statements. During 2024, the forward currency contracts matured as the Company settled the outstanding Purchase Commitment Liability. These forward contacts were remeasured at fair value on a recurring basis and are included in other assets in the December 31, 2023 consolidated balance sheets, with changes in their estimated fair value recognized as interest expense in the consolidated statements of comprehensive loss. The Company’s fair value determinations were based on foreign currency exchange rates in active markets, which are considered to be Level 2 measurements within the Fair Value Hierarchy.

Convertible Senior Notes

At December 31, 2024 and 2023, the fair value of the Notes were $539,494 and $0, respectively. The fair value was determined based on the quoted price of the Notes in an over-the-counter market on the last trading day of the reporting period and has been classified as Level 2 in the Fair Value Hierarchy. For further information on the Notes, refer to Note 10, “Debt.”

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Allowance for accounts receivable	$ 16,838	$ 16,272
Amortized cost	$ 9,147	$ 9,550
Preferred stock par value (per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	30,000	30,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A
Common stock par value (per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	300,000	300,000
Common stock, shares issued (in shares)	70,670	60,989
Common stock, shares outstanding (in shares)	70,670	60,989
Class B
Common stock par value (per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000	150,000
Common stock, shares issued (in shares)	86,481	92,661
Common stock, shares outstanding (in shares)	86,481	92,661

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheets, end of period:
Cash and cash equivalents	$ 296,051	$ 68,175	$ 91,803
Restricted cash-funds held for customers	30,015	20,976	14,945
Total cash, cash equivalents and restricted cash, end of period	$ 326,066	$ 89,151	$ 106,748

REVENUE RECOGNITION (Tables)

12 Months Ended

Dec. 31, 2024

REVENUE RECOGNITION

Schedule of disaggregation of revenue


	For the year ended December 31,
		2024	2023		2022
Software subscriptions:
Software licenses	$	291,081	$	266,213	$	246,577
Cloud subscriptions		276,043		214,617		168,896
Software subscriptions		567,124		480,830		415,473
Services		99,652		91,557		76,151
Total revenues	$	666,776	$	572,387	$	491,624

Schedule of beginning and ending balances of accounts receivable, net of allowance


		2024	2023		2022
Balance, beginning of period	$	141,752	$	102,885	$	76,929
Balance, end of period		164,432		141,752		102,885
Increase	$	22,680	$	38,867	$	25,956

Schedule of beginning and ending balances of and changes to the allowance and the deferred allowance


	For the year ended December 31,
	2024				2023					2022
	Balance			Net Change	Balance			Net Change		Balance		Net Change
Allowance balance, January 1,	$	(16,272)			$	(9,554)			$	(9,151)
Allowance balance, December 31,		(16,838)				(16,272)				(9,554)
Change in allowance			$	566			$	6,718			$	403
Deferred allowance balance, January 1,		11,741				7,133				6,537
Deferred allowance balance, December 31,		12,028				11,741				7,133
Change in deferred allowance				(287)				(4,608)				(596)
Net amount charged to revenues			$	279			$	2,110			$	(193)


	As of December 31,
	2024		2023
Balances:
Deferred revenue, current	$	339,326	$	290,143
Deferred revenue, non-current		4,840		2,577
Total deferred revenue	$	344,166	$	292,720


	For the year ended December 31,
	2024		2023		2022
Changes to deferred revenue:
Beginning balance	$	292,720	$	279,136	$	249,010
Additional amounts deferred		718,222		585,971		521,750
Revenues recognized		(666,776)		(572,387)		(491,624)
Ending balance	$	344,166	$	292,720	$	279,136

Schedule of information about the balances of and changes to deferred revenue


Year Ending December 31,
2025	$	339,326
2026		4,840
2027		—
Total	$	344,166

Schedule of information about the changes to contract cost balances


	For the year ended December 31,
	2024		2023		2022
Deferred commissions:
Beginning balance	$	21,237	$	15,463	$	12,555
Additions		23,736		16,552		13,913
Amortization		(17,493)		(10,778)		(11,005)
Ending balance	$	27,480	$	21,237	$	15,463

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Fair value of Cash and Stock Earn-outs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) Y	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Aug. 30, 2024 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of contingent consideration liabilities	$ 14,925	$ 1,549	$ 2,300
Purchase commitment and contingent consideration liabilities, current	35,100	11,901
Purchase commitment and contingent consideration liabilities, net of current portion	87,400	$ 2,600
Cash Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of contingent consideration liabilities	3,400
Purchase commitment and contingent consideration liabilities, current	17,900
Purchase commitment and contingent consideration liabilities, net of current portion	56,500
Stock Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of contingent consideration liabilities	14,100
Purchase commitment and contingent consideration liabilities, current	17,200
Purchase commitment and contingent consideration liabilities, net of current portion	30,900
Ecosio
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration				$ 105,000
Ecosio \| Cash Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 74,400			$ 71,000
Ecosio \| Cash Earn-outs \| Revenue volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration measurement input	0.21			0.21
Ecosio \| Cash Earn-outs \| Revenue discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration measurement input	0.077			0.076
Ecosio \| Cash Earn-outs \| Term (in years)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration measurement input	3.2			0.035
Ecosio \| Stock Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 48,100			$ 34,000
Ecosio \| Stock Earn-outs \| Revenue volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration measurement input	0.21			0.21
Ecosio \| Stock Earn-outs \| Revenue discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration measurement input	0.077			0.076
Ecosio \| Stock Earn-outs \| Term (in years)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration measurement input	3.2			0.035

INCOME TAXES - Benefit (Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Current income taxes:
Federal	$ 1,448	$ (279)	$ 1,696
State and local	855	1,568	1,068
Foreign	2,204	1,347	577
Total current	4,507	2,636	3,341
Deferred income taxes:
Federal	42,346	(9,224)	904
State and local	9,111	(1,552)	72
Foreign	(1,326)	(441)	(2,143)
Total deferred	50,131	(11,217)	(1,167)
Income tax expense (benefit)	$ 54,638	$ (8,581)	$ 2,174

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2024

EARNINGS PER SHARE

EARNINGS PER SHARE

12.EARNINGS PER SHARE

The tables below illustrate the calculation of basic and diluted net loss per common share for the Class A and Class B for the periods reflected below.


		For the year ended December 31,
		2024				2023				2022
		Class A		Class B		Class A		Class B		Class A		Class B
Basic net loss per share:
Numerator
Allocation of net loss⁽¹⁾	$	(21,974)	$	(30,755)	$	(4,721)	$	(8,372)	$	(3,771)	$	(8,533)
Denominator
Total shares used in per share computation		64,724		90,586		54,753		97,106		45,864		103,781
Basic net loss per share:	$	(0.34)	$	(0.34)	$	(0.09)	$	(0.09)	$	(0.08)	$	(0.08)

Diluted net loss per share:
Numerator
Allocation of net loss⁽¹⁾	$	(21,974)	$	(30,755)	$	(4,721)	$	(8,372)	$	(3,771)	$	(8,533)
Total net loss used in per diluted computation	$	(21,974)	$	(30,755)	$	(4,721)	$	(8,372)	$	(3,771)	$	(8,533)
Denominator
Number shares used in basic per share computation		64,724		90,586		54,753		97,106		45,864		103,781
Dilutive effect of common stock equivalents		—		—		—		—		—		—
Total shares used in per share computation		64,724		90,586		54,753		97,106		45,864		103,781
Dilutive net loss per share:	$	(0.34)	$	(0.34)	$	(0.09)	$	(0.09)	$	(0.08)	$	(0.08)
(1) Allocation of net loss is based on the percentages of shares outstanding.

The following weighted-average outstanding shares of common stock equivalents by award type were excluded from the computation of diluted net loss per share attributable to Class A stockholders, as the impact of including them would have been anti-dilutive.


	For the year ended December 31,
	2024	2023	2022
Stock Options⁽¹⁾	4,398	6,892	8,222
Out-of-the Money Stock Options	136	482	760
RSAs	63	168	285
RSUs	4,559	3,910	2,254
ESPP	31	42	52
Convertible Senior Notes	6,480	—	—
⁽¹⁾ Total excludes out-of-the money stock options.

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Employee Stock Purchase Plan (Details) - ESPP - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2021	Dec. 31, 2023
Compensation plans:
Purchase price as a percent of fair value	85.00%
Reserved for issuance		1,000
Maximum issuance (as a percentage of outstanding)		1.00%
Maximum issuance (in shares)		16,000
Shares available for issuance	6,335
Unrecognized compensation cost	$ 423		$ 375
ESPP offering period	6 months
Discount	15.00%

REVENUE RECOGNITION - Allowance and deferred allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Allowance for credit loss
Beginning balance	$ (16,272)	$ (9,554)	$ (9,151)
Ending balance	(16,838)	(16,272)	(9,554)
Change in allowance	566	6,718	403
Deferred beginning balance	11,741	7,133	6,537
Deferred ending balance	12,028	11,741	7,133
Change in deferred allowance	(287)	(4,608)	(596)
Net amount charged to revenues	279	2,110	(193)
Amount of revenue recognized	$ 290,143	$ 268,847	$ 237,344

DEBT - Interest expense related to Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Amortization of issuance costs	$ 2,033	$ 266	$ 245
Convertible Senior Notes 7.50 Percent, Due 2029
Debt Instrument [Line Items]
Contractual interest expense	1,761
Amortization of issuance costs	1,505
Total interest expense, convertible senior Notes	$ 3,266

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 27: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org/1943274/2147482900/835-30-50-1

+ Details

SEGMENT DISCLOSURES (Details) $ in Thousands	12 Months Ended
SEGMENT DISCLOSURES (Details) $ in Thousands	Dec. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
SEGMENT DISCLOSURES
Operating segments \| segment	1
Interest expense	$ 423	$ 4,020	$ 990
Property and equipment	177,559	100,734
Outside of the United States
SEGMENT DISCLOSURES
Property and equipment	$ 687	$ 827
Revenue \| Geographic Concentration Risk \| Outside of the United States
SEGMENT DISCLOSURES
Risk percentage	8.00%
Revenue \| No customer concentration more than 10% \| Outside of the United States
SEGMENT DISCLOSURES
Risk percentage	0.00%	0.00%	0.00%

LEASES (Details)	12 Months Ended
LEASES (Details)	Dec. 31, 2024
Maximum
Remaining lease term (in years)	4 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of property plant and equipment useful life


Leasehold improvements		1 - 12 years
Internal-use software developed		3 - 5 years
Computer software purchased		3 - 7 years
Equipment		3 - 10 years
Furniture and fixtures		7 - 10 years

Schedule of supplemental balance sheet information


		As of December 31,
	2024		2023
Prepaid expenses and other current assets:
Prepaid expenses	$	15,223	$	11,558
Unamortized cloud computing implementation costs		4,088		3,995
Prepaid insurance		1,488		521
Prepaid licenses and support		15,879		10,099
Prepaid expenses and other current assets	$	36,678	$	26,173

Other assets:
Unamortized cloud computing implementation costs	$	10,173	$	12,475
Other assets		3,900		3,538
Total other assets	$	14,073	$	16,013

Accrued expenses:
Accrued general expenses	$	14,862	$	25,998
Accrued contract labor and professional fees		15,152		13,372
Accrued income and other taxes		5,155		5,365
Accrued expenses	$	35,169	$	44,735

Schedule of supplemental cash flow disclosures


	For the year ended December 31,
	2024		2023		2022
Cash paid for:
Interest	$	3,287	$	3,729	$	2,221
Income taxes, net of refunds		8,593		5,652		3,059
Cash paid included in the measurement of lease liabilities:
Operating cash flows from operating leases		3,679		4,019		4,240
Non-cash investing and financing activities:
Change in settlement value of deferred purchase commitment liability		423		4,020		990
Change in fair value of contingent consideration liabilities		14,925		1,549		2,300
Leased assets obtained in exchange for new finance lease liabilities		48		124		1,069

INCOME TAXES - (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
INCOME TAXES
Provision for income taxes	$ 54,638	$ (8,581)	$ 2,174
Effective tax rate (as a percent)	2862.10%	39.60%	(21.50%)
U.S. federal income tax at statutory rate	21.00%	21.00%	21.00%
Unrecognized tax benefits	$ 1,427	$ 666	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section S99
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-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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-Paragraph 1
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-Topic 235
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-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

PROPERTY AND EQUIPMENT - Major components of internal-use software (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Property and equipment
Property and equipment	$ 177,559	$ 100,734
Internal-use software
Property and equipment
Property and equipment, gross	309,638	181,732
Less accumulated depreciation	(171,181)	(121,646)
Internal-use software developed, net of accumulated depreciation	138,457	60,086
Property and equipment	167,373	88,969
In-process internal-use software
Property and equipment
Property and equipment, gross	$ 28,916	$ 28,883

EARNINGS PER SHARE - Weighted-average outstanding shares of common stock equivalents (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	4,398	6,892	8,222
Out-of-the Money Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	136	482	760
RSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	63	168	285
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	4,559	3,910	2,254
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	31	42	52
Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	6,480

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Changes in fair value of contingent consideration (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
Cash Earn-outs
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value adjustments	$ 3,400
ecosio acquisition (Note 3)	71,000
Ending balance	74,400
Stock Earn-outs
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value adjustments	14,100
ecosio acquisition (Note 3)	34,000
Ending balance	48,100
Contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	4,900	$ 4,800	$ 2,500
Fair value adjustments	(2,575)	1,549	2,300
Payments	$ (2,325)	(1,449)
Ending balance		$ 4,900	$ 4,800

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful life (Details)	Dec. 31, 2024
Leasehold improvements \| Minimum
Property and equipment
Estimated useful lives (in years)	1 year
Leasehold improvements \| Maximum
Property and equipment
Estimated useful lives (in years)	12 years
Internal-use software \| Minimum
Property and equipment
Estimated useful lives (in years)	3 years
Internal-use software \| Maximum
Property and equipment
Estimated useful lives (in years)	5 years
Computer software purchased \| Minimum
Property and equipment
Estimated useful lives (in years)	3 years
Computer software purchased \| Maximum
Property and equipment
Estimated useful lives (in years)	7 years
Equipment \| Minimum
Property and equipment
Estimated useful lives (in years)	3 years
Equipment \| Maximum
Property and equipment
Estimated useful lives (in years)	10 years
Furniture and fixtures \| Minimum
Property and equipment
Estimated useful lives (in years)	7 years
Furniture and fixtures \| Maximum
Property and equipment
Estimated useful lives (in years)	10 years

INVESTMENTS - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Fair value of investment securities available for sale:
Due in 1 Year or Less	$ 7,598
Due > 1 Year through 5 Years	3,555
Total	11,153	$ 10,789
Fair value of amortized cost of investment securities available for sale
Due in 1 Year or Less	7,595
Due > 1 Year through 5 Years	3,545
Total	11,140	10,797
Unaccreted discount	59	114
Unamortized premium	0	0
Commercial paper
Fair value of investment securities available for sale:
Due in 1 Year or Less	4,920
Total	4,920	7,168
Fair value of amortized cost of investment securities available for sale
Total	4,920	7,169
Corporate bonds
Fair value of investment securities available for sale:
Due > 1 Year through 5 Years	250
Total	250
Fair value of amortized cost of investment securities available for sale
Total	250
U.S. Treasury securities
Fair value of investment securities available for sale:
Due in 1 Year or Less	2,678
Due > 1 Year through 5 Years	3,305
Total	5,983	3,621
Fair value of amortized cost of investment securities available for sale
Total	$ 5,970	$ 3,628

ACQUISITIONS - Ecosio GmbH (Details) $ in Thousands		12 Months Ended
ACQUISITIONS - Ecosio GmbH (Details) $ in Thousands	Aug. 30, 2024 USD ($) segment	Dec. 31, 2024 USD ($) segment
ACQUISITIONS
Number of operating segment \| segment		1
Ecosio
ACQUISITIONS
Equity interest acquired	100.00%
Number of operating segment \| segment	1
Total purchase consideration, net of cash acquired	$ 169,041
Cash received in the acquisition	788
Initial cash consideration, net	$ 65,000
Revenue performance target, term	3 years
Cash and Stock Earn-outs, at fair value	$ 105,000
Total transaction costs		$ 1,698
Ecosio \| Cash Earn-outs
ACQUISITIONS
Maximum potential earnout payments	94,355
Cash and Stock Earn-outs, at fair value	71,000	74,400
Ecosio \| Stock Earn-outs
ACQUISITIONS
Maximum potential earnout payments	35,000
Cash and Stock Earn-outs, at fair value	$ 34,000	$ 48,100

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Restricted Stock Units (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) $ / shares shares
Units
Beginning balance (in units) \| shares	4,171
Granted (in units) \| shares	1,833
Vested (in units) \| shares	(1,345)
Forfeited (in units) \| shares	(125)
Ending balance (in units) \| shares	4,534
Weighted Average Per Share
Beginning balance (in dollars per share) \| $ / shares	$ 16.11
Granted (in dollars per share) \| $ / shares	26.09
Vested (in dollars per share) \| $ / shares	16.7
Forfeited (in dollars per share) \| $ / shares	16.33
Ending balance (in dollars per share) \| $ / shares	$ 19.96
Unrecognized compensation cost \| $	$ 54,191
Unrecognized compensation expense period	2 years 4 months 24 days
Minimum
Compensation plans:
Service requirement (in years)	1 year
Maximum
Compensation plans:
Service requirement (in years)	4 years

REVENUE RECOGNITION - Disaggregation of revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of revenue:
Total Revenues	$ 666,776	$ 572,387	$ 491,624
Software subscriptions
Disaggregation of revenue:
Total Revenues	567,124	480,830	415,473
Software licenses
Disaggregation of revenue:
Total Revenues	291,081	266,213	246,577
Cloud subscriptions
Disaggregation of revenue:
Total Revenues	276,043	214,617	168,896
Services
Disaggregation of revenue:
Total Revenues	$ 99,652	$ 91,557	$ 76,151

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479941/924-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

REVENUE RECOGNITION - Deferred revenue, recognized (Details) $ in Thousands	Dec. 31, 2024 USD ($)
REVENUE RECOGNITION
2025	$ 339,326
2026	4,840
Total	$ 344,166

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Stock based compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Allocation of costs
Compensation expense	$ 47,425	$ 33,919	$ 19,729
Employee Stock Option
Allocation of costs
Compensation expense	6,768	6,349	7,081
RSUs
Allocation of costs
Compensation expense	37,770	24,257	9,286
RSAs
Allocation of costs
Compensation expense	1,617	2,496	2,768
PSUs
Allocation of costs
Compensation expense	285
ESPP
Allocation of costs
Compensation expense	$ 985	$ 817	$ 594

ACQUISITIONS

12 Months Ended

Dec. 31, 2024

ACQUISITIONS

ACQUISITIONS

3.	ACQUISITIONS

Business Combination

ecosio GmbH

On August 30, 2024 (the “Acquisition Date”), the Company purchased 100% of the share interests in ecosio, a limited liability company incorporated under the laws of Austria and a provider of electronic data interchange (“EDI”) and e-invoicing services. The acquisition was completed with the goal of integrating ecosio’s cloud-based, scalable global network with the Company’s indirect tax solutions to enable customers to facilitate the creation, exchange, and clearance of jurisdictionally compliant e-invoices and seamlessly reconcile these invoices with their periodic filing requirements. Ecosio’s operations and offerings are being integrated into the Company’s one operating segment. 

The acquisition was accounted for as a business combination. Upon its acquisition, ecosio became a wholly owned subsidiary of the Company, and its operations have been included in the Company’s consolidated financial statements commencing on the Acquisition Date.

Total Purchase Consideration

Total purchase consideration for the ecosio acquisition was $169,041, net of $788 cash acquired, which was comprised of the following:


	August 30, 2024
Upfront cash consideration	$	64,829
Cash and Stock Earn-outs, at fair value		105,000
Total	$	169,829

The initial cash consideration was $65,000, adjusted for certain closing adjustments and transaction costs paid on behalf of ecosio. The cash consideration was paid with existing cash on hand.

The contingent consideration liabilities included in the consideration are in the form of cash, with an aggregate of up to $94,355 (the “Cash Earn-outs”), and stock, with an aggregate value of up to $35,000 (the “Stock Earn-outs,” and together with the Cash Earn-outs, the “Earn-outs”), assuming maximum payouts. The Earn-outs will be based upon ecosio’s monthly software revenues meeting specified annual targets over a three-year period. The Cash Earn-outs are payable

annually and also contain a catch-up mechanism. The Stock Earn-outs are payable annually and are settled in shares of the Company’s Class A common stock. The fair value of the Cash and Stock Earn-outs at acquisition was $71,000 and $34,000, respectively, and was measured on the Acquisition Date using a Monte Carlo simulation in a risk-neutral framework, calibrated to management’s revenue forecasts. The final payments may be adjusted depending on the actual amount, above or below the targets. The Stock Earn-outs are classified as a liability on the consolidated balance sheets in accordance with ASC Topic 815, “Derivatives and Hedging.” For further information on the Earn-outs, including recurring fair value adjustments, refer to Note 5, “Financial Instruments and Fair Value Measurements.”

Fair Value of Assets Acquired and Liabilities Assumed

The purchase price was allocated to the net assets acquired based on management’s determination of their estimated fair values using available information as of the Acquisition Date. The excess of purchase consideration over the net assets acquired is recorded as goodwill, which primarily reflects the existence of intangible assets not recognized under U.S. GAAP such as the value of expected future synergies, the value of the assembled workforce and other market factors. The fair values of these amounts on the Acquisition Date, which are reflected in the table below, were finalized during the fourth quarter of 2024. These amounts include Measurement Period adjustments resulting in a decrease to deferred income tax liabilities of $3,879, and various other adjustments resulting in a net reduction to goodwill of $3,841. Any subsequent adjustments to these values will be recorded in the consolidated statements of comprehensive loss in the period in which the adjustment is identified.

The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed as recorded in the Company’s consolidated balance sheets as of the Acquisition Date:


	August 30, 2024
Cash and cash equivalents	$	788
Accounts receivable		2,068
Prepaid expenses and other current assets		475
Property and equipment⁽¹⁾		63,984
Other assets		263
Goodwill ⁽²⁾		119,668
Other intangibles		5,950
Accounts payable		(1,118)
Operating lease liabilities		(229)
Third-party debt		(3,904)
Accrued expenses		(5,222)
Deferred revenue		(752)
Deferred income tax		(12,142)
Total	$	169,829
⁽¹⁾ Includes $63,800 of acquired developed technology.
⁽²⁾ Goodwill associated with the acquisition is not deductible for tax purposes.

The fair value, valuation methodologies, estimated useful lives, and significant assumptions of the identifiable intangibles acquired in the ecosio acquisition are summarized in the table below:

August 30, 2024

ecosio Identifiable Intangibles

Balance Sheet Location

Fair Value

Valuation Methodology

Estimated Useful Life

Discount Rate

Developed technology

Property and equipment, net

63,800

Multi-period excess earnings method - income approach

7 years

15.5

Trade name

Goodwill and other intangible assets

1,450

Relief from royalty method - income approach

3 years

15.5

Customer relationships

Goodwill and other intangible assets

4,500

With and without method - income approach

3 years

15.5

Third-party experts were engaged to assist in the valuation of identifiable intangible assets and Earn-out payments as part of the acquisition. All estimates, key assumptions, and forecasts were either provided or reviewed by the Company. Significant assumptions applied in the valuation of developed technology, tradename, and customer relationships include cash flow projections, revenue growth rates, cost of sales and margin projections, obsolescence curve, and royalty rates. While the Company chose to utilize a third-party valuation specialist for assistance, the fair value analysis and related valuations reflect the conclusions of the Company, and not those of any third-party.

Total transaction costs associated with the acquisition were $1,698 for the year ended December 31, 2024, and are recorded in other operating expense (income), net in the consolidated statements of comprehensive loss.

Asset Acquisition

Artificial Intelligence Tax Categorization

On May 31,2024, the Company entered into an asset purchase agreement with Ryan, LLC (“Ryan”) to acquire tax-specific artificial intelligence (“AI”) capabilities, designed to more effectively manage the complexity of tax mapping. The acquisition will accelerate the Company’s AI innovation strategy to help global companies manage tax complexity with greater speed and scale.

The Company paid $6,075 in closing consideration, which included $75 in transaction costs. The purchase agreement also includes the potential for earn-out payments and referral fees to Ryan over a five-year period. The earn-out payments will be paid annually in an amount equal to the (a) applicable percentage (ranging from 0% to 35%) multiplied by (b) new sales (excluding new sales to new customers). The referral fees will be paid annually to compensate Ryan for new customers in an amount equal to 35% multiplied by new sales from such new customers. The agreement also contained the assignment and assumption of certain immaterial contracts related to the software.

Following the guidance provided under the FASB Accounting Standards Update No. 2017-01, Clarifying the Definition of a Business, the transaction was accounted for as an asset acquisition and the entire consideration was allocated to the asset and recognized as in-process internal-use software within property and equipment on the consolidated balance sheets. Once placed into service, the asset will be reported as internal-use cloud-based customer solutions software, net of accumulated amortization within property and equipment on the consolidated balance sheets and will amortize over its assigned useful life of five years.

Unaudited Pro Forma Financial Information

Unaudited proforma financial information has not been presented, as the information from the acquired companies would not have had a material impact individually or in the aggregate for the prior year periods.

ACQUISITIONS - Purchase price (Details) - Ecosio $ in Thousands	Aug. 30, 2024 USD ($)
ACQUISITIONS
Upfront cash consideration	$ 64,829
Cash and Stock Earn-outs, at fair value	105,000
Purchase price	$ 169,829

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2024

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS

13.EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS

The Company maintains a 401(k) plan that covers eligible employees. The Company matches up to 6% of eligible compensation during the period in which an eligible participant contributes to the plan. Matching 401(k) contributions were $12,641, $11,285, and $10,056 for the years ended December 31, 2024, 2023, and 2022, respectively.

Long-Term Rewards Plan

The Company had a long-term reward (“LTR”) compensation plan for certain key employees related to growth in certain financial measures over a three-year measurement period (the “Reward Performance Period’), subject to the terms of the plan. After December 31, 2020, no new awards were granted under the LTR plan as future long-term awards will only be made under the 2020 Plan.

Eligible LTR plan participants received an individual target award opportunity for a new three-year Reward Performance Period (i.e., target award grant made in 2019 is for years 2019 through 2021). Compensation earned for growth in the financial measures over each Reward Performance Period is paid in cash in the year following the end of the respective Reward Performance Period, assuming the minimum net income target was achieved in the final year of the Reward Performance Period. Estimated compensation is recorded during each year of a Reward Performance Period. At December 31, 2022, the Company had one open Reward Performance Period, which was paid in 2023.

There was no compensation expense associated with the LTR plan for the years ended December 31, 2024 and 2023. Compensation expense associated with the LTR plan was $892 for the year ended December 31, 2022. Amounts paid in 2023 and 2022 for the LTR plan were $2,237, and $4,023, respectively.

Stock-Based Award Plans

The 2020 Incentive Award Plan (the “2020 Plan”) provides the ability to grant cash and equity-based incentive awards to eligible employees, directors and service providers in order to attract, retain, and motivate those that make important contributions to the Company. The 2020 Plan provides for the award of stock options, RSAs, RSUs, and other cash compensation. The ESPP provides eligible employees with rights during each six-month ESPP offering period to purchase shares of the Company’s Class A at the ESPP discount through payroll deductions. Amounts withheld or received from participants are reflected in accrued salaries and benefits in the consolidated balance sheets until such shares are purchased. Amounts withheld from participants for the offering periods ending May 31, 2025 and 2024 aggregated $496 and $371 as of December 31, 2024 and 2023, respectively.

2020 Plan

Upon commencement of the 2020 Plan, an aggregate of 16,500 shares of our Class A were available for issuance. The number of shares available for issuance are increased annually on January 1 of each calendar year beginning in 2021 and ending in and including 2030, equal to the lesser of (i) 4% of the shares of Class A and Class B outstanding on the final day of the immediately preceding calendar year and (ii) a smaller number of shares as determined by the Board. No more than 3,000 shares of Class A may be issued under the 2020 Plan upon the exercise of incentive stock options. Shares available under the 2020 Plan may consist of authorized but unissued shares, shares purchased on the open market, or treasury shares. If an award under the 2020 Plan expires, lapses, or is terminated, exchanged for cash, surrendered, repurchased, or canceled without having been fully exercised or forfeited, any unused shares subject to the award will again be available for new grants under the 2020 Plan. Awards granted under the 2020 Plan in substitution for any options or other stock or stock-based awards granted by an entity before the entity’s merger or consolidation with or acquisition by the Company of the entity’s property or stock will not reduce the shares available for grant under the 2020 Plan but will count against the maximum number of shares that may be issued upon the exercise of incentive stock options.

As of December 31, 2024, 20,663 shares of our Class A were available for issuance under the 2020 Plan. No incentive stock options that would be subject to the 3,000 Class A share limit were issued or outstanding under the 2020 Plan at December 31, 2024.

Awards issued under the 2020 Plan vest based on service criteria established by the Board. The Company has elected to account for forfeitures as they occur rather than estimate forfeitures at date of grant.

Options under 2020 Plan

The following table summarizes activity for options outstanding under the 2020 Plan:


				Weighted
			Weighted	Average
			Average	Remaining	Aggregate
			Exercise	Contractual	Intrinsic
2020 Plan Option Activity	Units		Price	Life (Years)	Value
Outstanding at January 1, 2024	5,692	$	5.32	4.7	$	124,327
Exercised	(2,722)	$	3.56
2020 Plan options outstanding at December 31, 2024	2,970	$	6.93	4.4	$	137,857
2020 Plan options exercisable at December 31, 2024	2,504	$	6.35	4.2	$	117,670

The detail of options outstanding, vested and exercisable under the 2020 Plan as of December 31, 2024 is as follows:



	Options Outstanding		Options Vested and Exercisable
		Weighted		Weighted
		Average		Average
Exercise Prices	Units	Life (Years)	Units	Life (Years)
$0.15 to $0.71	347	*	347	*
$2.50	598	1.6	598	1.6
$3.17	113	3.1	113	3.1
$3.73	908	4.9	908	4.9
$4.70	466	5.1	125	5.1
$18.47	190	6.9	136	6.9
$18.96	80	6.6	80	6.6
$19.00	46	6.7	30	6.7
$32.16	222	6.2	167	6.2
	2,970		2,504
*These options have indefinite contractual lives.

The Board intends all options granted to be exercisable at a price per share not less than the per share fair market value of the Company’s Class A underlying the options on the date of grant. Compensation expense to participants under the 2020 Plan is measured based on the grant date fair value of the awards and recognized in the consolidated statements of comprehensive loss over the period during which the participant is required to perform the requisite services. The vesting period is generally one to four years. No options were issued during 2024, 2023 or 2022. At December 31, 2024, $595 of unrecognized compensation expense associated with the options is expected to be recognized over a weighted average period of approximately 0.7 years.

Restricted Stock Units

The following table summarizes RSU activity for the year ended December 31, 2024:



		Weighted
		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	4,171	$	16.11
Granted	1,833		26.09
Vested	(1,345)		16.70
Forfeited	(125)		16.33
Outstanding at December 31, 2024	4,534	$	19.96

Stock-based compensation cost for RSUs is measured based on the fair value of the Company’s underlying common stock on the date of grant. Compensation cost will be recognized on a straight-line basis in the consolidated statements of comprehensive loss over the period during which the participant is required to perform services in exchange for the award, which is generally one to four years. At December 31, 2024, $54,191 of unrecognized compensation cost for RSUs is expected to be recognized over a weighted average period of approximately 2.4 years.

Performance Stock Units

In connection with the ecosio acquisition, current and newly hired employees of ecosio have or may receive RSUs that vest upon continuing service and performance conditions (“Performance Stock Units” or “PSUs”). These performance conditions are based upon ecosio’s monthly software revenues meeting specified annual targets over a three-year period. The annual targets are based on a range of performance targets in which grantees may earn a prorated portion of the base number of awards granted up to 100%. For further information on the ecosio acquisition, refer to Note 3, “Acquisitions.”

On December 17, 2024, the Company granted 192 PSUs to ecosio employees. The fair value for PSUs is calculated based on the closing stock price on the date of grant. Assuming all conditions are met, the maximum amount of compensation expense that can be recognized by the Company for these awards is $10,259.

The stock-compensation expense associated with the awards will be accounted for as compensation expense over the vesting periods based on the Company’s assessment of probability of achievement of the targets. If the required conditions are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. As of December 31, 2024, the Company determined that it is probable that the performance target for the first annual measurement period would be achieved and has recorded $285 in stock-based compensation expense for the year ended December 31, 2024. No compensation expense has been recorded in connection with the second or third annual targets as the Company has not yet deemed it probable that the performance targets will be achieved.

At December 31, 2024, a maximum of $9,974 of unrecognized compensation cost for PSUs, pending achievement of targets, may be recognized over a weighted average period of approximately 2.9 years.

The following table summarizes PSU activity for the year ended December 31, 2024:


		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	—	$	—
Granted	192		53.46
Outstanding at December 31, 2024	192	$	53.46

Restricted Stock Awards

The following table summarizes RSA activity for the year ended December 31, 2024:



		Weighted
		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	91	$	21.50
Granted	34		35.06
Vested	(91)		21.50
Outstanding at December 31, 2024	34	$	35.06

Stock-based compensation cost for RSAs is measured based on the fair value of the Company’s underlying common stock on the date of grant. Compensation cost will be recognized on a straight-line basis in the consolidated statements of comprehensive loss over the period during which the participants are required to perform services in exchange for the award, which is generally one to four years. At December 31, 2024, $532 of unrecognized compensation cost for RSAs is expected to be recognized over a weighted average period of approximately 0.5 years.

Employee Stock Purchase Plan

The ESPP permits participants to purchase Class A primarily through payroll deductions of up to a specified percentage of their eligible compensation. The maximum number of shares that may be purchased by a participant during any offering period is determined by the plan administrator in advance of each offering period.

A total of 1,000 shares of Class A were initially reserved for issuance under the ESPP. The number of shares available for issuance under the ESPP increases annually on January 1 of each calendar year beginning in 2021 and ending in and including 2030, by an amount equal to the lesser of (i) 1% of the shares of Class A and Class B outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Board, provided that no more than 16,000 shares of Class A may be issued. The ESPP is administered by a committee of the Board. As of December 31, 2024, there were 6,335 shares available for issuance under the ESPP.

On the first trading day of each offering period, each participant will automatically be granted an option to purchase shares of Class A. The option will expire at the end of the applicable offering period and will be exercised at that time to the extent of the payroll deductions accumulated or contributions made during such offering period. The purchase price of

the shares, in the absence of a contrary designation, is 85% of the lower of the fair value of the Class A on the first or last day of the ESPP offering period. Participants may voluntarily end their participation in the plan at any time during a specified period prior to the end of the applicable offering period and will be paid their accrued payroll deductions and related contributions, if applicable, that have not yet been used to purchase shares of Class A. If a participant withdraws from the plan during an offering period, the participant cannot rejoin until the next offering period. Participation ends automatically upon a participant's termination of employment.

As of December 31, 2024 and 2023, there was approximately $423 and $375, respectively, of unrecognized ESPP stock-based compensation cost that is expected to be recognized on a straight-line basis over the remaining term of the offering periods ending on May 31, 2025 and 2024, respectively.

The fair value of ESPP purchase rights for the offering periods is comprised of the value of the 15% ESPP discount and the value associated with the call or put over the respective ESPP offering period. ESPP offering periods reflected in the December 31, 2024, financial statements include the periods noted below in the table. The value of the call or put was estimated using the Black-Scholes model with the following assumptions:


	Offering Period Ending
	5/31/2025			11/30/2024			5/31/2024			11/30/2023			5/31/2023
Fair market value of common stock	$	54.64		$	33.26		$	27.82		$	21.76		$	17.21
Volatility		26.4	%		41.7	%		36.6	%		39.4	%		46.4	%
Expected term (years)		0.5			0.5			0.5			0.5			0.5
Expected dividend yield		-	%		-	%		-	%		-	%		-	%
Risk-free interest rate		4.4	%		5.4	%		5.3	%		5.4	%		4.7	%

Volatility is representative of expected stock price volatility over the offering period. The Company’s volatility is applied to current and future offering periods. The expected term represents the term of the ESPP offering period, which is six months. The Company does not expect to pay dividends. The risk-free interest rate was based on the rate for a U.S. Treasury zero-coupon issue with a term that closely approximates the expected term of the award at the date nearest to the offering term.

Stock-Based Compensation

The Company recognized total stock-based compensation cost related to incentive awards, net of forfeitures, as follows:


	For the year ended December 31,
	2024		2023		2022
Stock-based compensation expense:
Stock options	$	6,768	$	6,349	$	7,081
RSUs		37,770		24,257		9,286
RSAs		1,617		2,496		2,768
PSUs		285		—		—
ESPP		985		817		594
Total stock-based compensation expense	$	47,425	$	33,919	$	19,729

The Company recognized stock-based compensation cost in the consolidated statements of comprehensive loss as follows:


	For the year ended December 31,
	2024		2023		2022
Stock-based compensation expense:
Cost of revenues, software subscriptions	$	4,349	$	2,834	$	2,090
Cost of revenues, services		2,768		1,846		1,433
Research and development		9,548		5,994		1,798
Selling and marketing		13,204		8,380		6,284
General and administrative		17,556		14,865		8,124
Total stock-based compensation expense	$	47,425	$	33,919	$	19,729

The total recognized tax benefit related to the stock-based compensation expense for the years ended December 31, 2024, 2023, and 2022 was $33,739, $16,541, and $3,324, respectively. The tax benefit from stock options exercised during the years ended December 31, 2024, 2023, and 2022 was $25,306, $13,079, and $2,710, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (p)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480266/715-60-50-3

+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net loss	$ (52,729)	$ (13,093)	$ (12,304)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	82,733	71,891	61,153
Amortization of cloud computing implementation costs	4,007	2,570
Provision for subscription cancellations and non-renewals	199	2,083	(196)
Amortization of deferred financing costs	2,033	266	245
Change in fair value of contingent consideration liabilities	14,925
Change in settlement value of deferred purchase commitment liability	423
Write-off of deferred financing costs	276		370
Stock-based compensation expense	47,425	33,919	19,729
Deferred income taxes	51,068	(11,574)	(1,345)
Non-cash operating lease costs	2,857	2,587	3,357
Other	(203)	5,335	4,052
Changes in operating assets and liabilities:
Accounts receivable	(22,076)	(45,222)	(25,665)
Prepaid expenses and other current assets	(14,207)	(6,354)	(2,171)
Deferred commissions	(6,242)	(5,774)	(2,908)
Accounts payable	11,615	9,241	1,369
Accrued expenses	(12,323)	5,837	15,064
Accrued and deferred compensation	9,232	7,516	(12,005)
Deferred revenue	51,096	18,172	30,768
Operating lease liabilities	(3,999)	(4,224)	(4,041)
Payments for purchase commitment and contingent consideration liabilities in excess of initial fair value	(4,367)
Other	3,078	1,156	(11,624)
Net cash provided by operating activities	164,821	74,332	63,848
Cash flows from investing activities:
Acquisition of businesses and assets, net of cash acquired	(71,755)		(474)
Property and equipment additions	(65,769)	(49,261)	(45,532)
Capitalized software additions	(21,344)	(18,972)	(14,888)
Purchase of investment securities, available-for-sale	(15,993)	(16,328)	(16,518)
Proceeds from sales and maturities of investment securities, available-for-sale	16,710	18,390	5,364
Net cash used in investing activities	(158,151)	(66,171)	(72,048)
Cash flows from financing activities:
Net increase (decrease) in customer funds obligations	9,675	5,610	(11,340)
Proceeds from term loan			50,000
Proceeds from convertible senior notes	345,000
Principal payments on long-term debt	(46,875)	(2,188)	(938)
Payments on third-party debt	(3,904)
Payment for purchase of capped calls	(42,366)
Payments for deferred financing costs	(12,541)	(1,001)	(983)
Proceeds from purchases of stock under ESPP	2,998	2,486	1,951
Payments for taxes related to net share settlement of stock-based awards	(21,516)	(9,701)	(1,104)
Proceeds from exercise of stock options	8,459	4,839	1,821
Distributions under Tax Sharing Agreement			(536)
Payments for purchase commitment and contingent consideration liabilities	(7,580)	(6,424)	(423)
Payments of finance lease liabilities	(93)	(103)	(1,354)
Payments for deferred purchase commitments		(20,000)	(20,000)
Net cash provided by (used in) financing activities	231,257	(26,482)	17,094
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,012)	724	(352)
Net increase (decrease) in cash, cash equivalents and restricted cash	236,915	(17,597)	8,542
Cash, cash equivalents and restricted cash, beginning of period	89,151	106,748	98,206
Cash, cash equivalents and restricted cash, end of period	$ 326,066	$ 89,151	$ 106,748

PROPERTY AND EQUIPMENT - Amounts included in property and equipment additions related to capitalized internal-use software (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cloud-based customer solutions
Property and equipment
Total	$ 45,374	$ 29,496	$ 28,918
Internal systems and tools
Property and equipment
Total	19,024	17,751	13,356
Internal-use software
Property and equipment
Total	$ 64,398	$ 47,247	$ 42,274

SEGMENT DISCLOSURES - Segment income (loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total Revenues	$ 666,776	$ 572,387	$ 491,624
Cost of revenues	240,651	223,808	193,132
Research & development	66,666	58,212	41,877
Selling & marketing	170,574	140,237	125,335
General & administrative	152,835	145,936	121,651
Depreciation & amortization	20,953	15,202	12,440
Other segment items	(175)	6,502	5,271
Interest expense (income), net	(4,137)	4,164	2,048
Income tax expense (benefit)	54,638	(8,581)	2,174
Net loss	(52,729)	(13,093)	(12,304)
Adjustments:
Interest expense (income), net	(4,137)	4,164	2,048
Income tax expense (benefit)	54,638	(8,581)	2,174
Depreciation and amortization	20,953	15,202	12,440
Amortization of cloud computing implementation costs - general and administrative	4,007	2,570
Stock-based compensation expense	47,425	33,919	19,729
Software subscriptions
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total Revenues	567,124	480,830	415,473
Cost of revenues	175,580	162,920	142,071
Services
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total Revenues	99,652	91,557	76,151
Cost of revenues	65,071	60,888	51,061
Single reportable segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total Revenues	666,776	572,387	491,624
Research & development	66,666	58,212	41,877
Selling & marketing	170,574	140,237	125,335
General & administrative	152,835	145,936	121,651
Depreciation & amortization	20,953	15,202	12,440
Change in fair value of acquisition contingent earn-outs	17,500
Other segment items	(175)	6,502	5,271
Interest expense (income), net	(4,137)	4,164	2,048
Income tax expense (benefit)	54,638	(8,581)	2,174
Net loss	(52,729)	(13,093)	(12,304)
Adjustments:
Interest expense (income), net	(4,137)	4,164	2,048
Income tax expense (benefit)	54,638	(8,581)	2,174
Depreciation and amortization	20,953	15,202	12,440
Depreciation and amortization of capitalized software and acquired intangible assets - cost of subscription revenues	59,302	54,048	44,934
Amortization of acquired intangible assets - selling and marketing expense	2,478	2,641	3,779
Amortization of cloud computing implementation costs - general and administrative	4,007	2,570
Stock-based compensation expense	47,425	33,919	19,729
Severance expense	3,048	3,576	877
Acquisition contingent consideration	(2,575)	1,549	2,300
Litigation settlements			2,000
Change in fair value of acquisition contingent earn-outs	17,500
Transaction costs	2,032	4,853	696
Adjusted EBITDA (Non-GAAP)	151,942	100,848	78,673
Single reportable segment \| Software subscriptions
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Cost of revenues	175,580	162,920	142,071
Single reportable segment \| Services
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Cost of revenues	$ 65,071	$ 60,888	$ 51,061

INCOME TAXES

12 Months Ended

Dec. 31, 2024

INCOME TAXES

INCOME TAXES

17.INCOME TAXES

The components of net income (loss) before income taxes, by geography, are as follows:


	For the year ended December 31,
	2024		2023		2022
U.S.	$	9,174	$	(3,126)	$	5,827
Foreign		(7,265)		(18,548)		(15,957)
Net income (loss) before income taxes	$	1,909	$	(21,674)	$	(10,130)

Income tax expense (benefit) consists of the following:


	For the year ended December 31,
	2024		2023		2022
Current income taxes:
Federal	$	1,448	$	(279)	$	1,696
State and local		855		1,568		1,068
Foreign		2,204		1,347		577
Total current		4,507		2,636		3,341
Deferred income taxes:
Federal		42,346		(9,224)		904
State and local		9,111		(1,552)		72
Foreign		(1,326)		(441)		(2,143)
Total deferred		50,131		(11,217)		(1,167)
Income tax expense (benefit)	$	54,638	$	(8,581)	$	2,174

During the year ended December 31, 2024, the Company recognized a $37 income tax benefit in accumulated other comprehensive loss relating to unrealized gains (losses) from foreign currency translation adjustments and revaluations, and available-for-sale securities, and in stockholder's equity related to increases in contributed capital. During the year ended December 31, 2023, the Company recognized a $27 income tax expense in accumulated other comprehensive income (loss) relating to unrealized gains from foreign currency translation adjustments and revaluations, and available-for-sale securities.

The reconciliation of the effective tax rate to tax at the statutory rates for the years ended December 31 is as follows:


	2024				2023				2022
	Total		Tax Rate		Total		Tax Rate		Total		Tax Rate
Pretax net income (loss)	$	1,909			$	(21,674)			$	(10,130)
Taxes:
U.S. federal income tax at statutory rate	$	401	21.0	%	$	(4,552)	21.0	%	$	(2,128)	21.0	%
State income taxes		900	47.1	%		289	(1.3)	%		441	(4.4)	%
Stock-based compensation expense		(20,559)	(1,077.0)	%		(6,236)	28.8	%		1,787	(17.6)	%
Impact of foreign operations		833	43.6	%		1,463	(6.8)	%		1,352	(13.3)	%
Transaction costs		431	22.6	%		—	0.0	%		176	(1.7)	%
U.S. taxation of foreign earnings		2	0.1	%		(245)	1.1	%		(179)	1.8	%
Nondeductible compensation		3,948	206.8	%		2,822	(13.0)	%		485	(4.8)	%
Tax credits		(4,920)	(257.7)	%		(5,818)	26.8	%		(341)	3.4	%
Change in valuation allowance		67,135	3,516.8	%		3,386	(15.6)	%		427	(4.2)	%
Purchase commitment and contingent consideration liabilities		6,186	324.0	%		—	0.0	%		—	0.0	%
Changes in prior year unrecognized tax benefits		98	5.1	%		451	(2.1)	%		—	0.0	%
Other permanent items, net		183	9.7	%		(141)	0.7	%		154	(1.7)	%
Taxes and effective tax rate	$	54,638	2,862.1	%	$	(8,581)	39.6	%	$	2,174	(21.5)	%

The effective tax rate in 2024 increased to 2,862.1% from 39.6% in 2023. The increase in income tax expense in 2024 was primarily driven by changes in valuation allowances on net deferred tax assets established for U.S. and certain foreign jurisdictions, nondeductible purchase commitment and contingent consideration liabilities, and pre-tax income, partially offset by the favorable impact of tax benefits on exercises and vesting of stock awards, net of limitations on deductions of certain employees’ compensation under Internal Revenue Code (“IRC”) Section 162(m).

The effective tax rate in 2023 increased to 39.6% from (21.5)% in 2022. The increase in income tax benefit in 2023 was primarily driven by changes in tax benefits on exercises and vesting of stock awards, tax credits, valuation allowances on net deferred tax assets established for certain foreign jurisdictions, loss before income tax, and limitations on deductions of certain employees’ compensation under IRC Section 162(m).

The impact of foreign operations in 2024, 2023, and 2022 primarily reflects losses in Ireland taxed at 12.5%, as well as income or losses taxed at rates in other foreign jurisdictions, as opposed to the statutory U.S. federal income tax rate.

Significant components of the Company’s net deferred tax assets (liabilities) are as follows:


	As of December 31,
Deferred tax assets:	2024		2023
Deferred revenue	$	1,512	$	3,523
State operating loss carry forwards		3,674		2,682
Federal and foreign loss carry forwards		8,651		4,361
Accrued expenses		1,754		2,239
Accrued compensation		3,440		2,339
Deferred and stock-based compensation		13,826		19,008
Operating lease liabilities		4,185		5,151
Tax credits		5,160		3,662
Original issue discount		9,396		—
Depreciation and amortization		14,964		6,417
Other		—		2,721
Deferred tax assets		66,562		52,103
Valuation allowance		(72,285)		(5,941)
Total deferred tax assets		(5,723)		46,162
Deferred tax liabilities:
Prepaid expenses		(671)		(1,026)
Right of use asset		(3,006)		(3,428)
Other		(499)		—
Total deferred tax liabilities		(4,176)		(4,454)
Net deferred tax assets (liabilities)	$	(9,899)	$	41,708

Classification in the consolidated balance sheets:
Deferred income tax assets	$	19	$	41,708
Deferred income tax liabilities		(9,918)		—
Net deferred tax assets (liabilities)	$	(9,899)	$	41,708

At December 31, 2024, the Company has U.S. state operating loss carry forwards of $58,869. The state operating losses will expire at varying dates beginning in 2029 through 2044 or will carry forward indefinitely. A full valuation allowance is recorded for the U.S. state operating losses at December 31, 2024.

At December 31, 2024, the Company has available foreign operating losses of approximately $48,238 and nontrading losses of $44, which generally carry forward indefinitely. A valuation allowance for a portion of the foreign operating and non-operating losses is recorded at December 31, 2024 and 2023. A portion of the foreign operating losses could be forfeited if certain changes in the business occur in future years, which the Company continues to monitor.

At December 31, 2024, the Company has available U.S. federal R&D tax credit carryovers of $5,160. The credits will expire from 2043 through 2044. A full valuation allowance is recorded for the U.S. federal R&D tax credit carryovers at December 31, 2024.

At December 31, 2024 and 2023, the Company has a valuation allowance of $(72,285) and $(5,941), respectively, primarily against certain U.S. and foreign deferred tax assets. The increase in the total valuation allowance of $(66,344) during December 31, 2024, primarily related to recording a valuation allowance on the U.S. deferred tax assets, partially offset by decreases in valuation allowances in certain foreign jurisdictions as well as changes in foreign exchange rates.

During the fourth quarter of 2024, the Company established a valuation allowance against our U.S. deferred tax assets as it was determined to be more likely than not that these assets will not be realized. This determination was made based

on weighing all negative evidence, specifically cumulative losses recognized in our U.S. entity over the past three years. These cumulative losses were mainly due to significant windfall tax benefits realized from the exercises of stock options during the fourth quarter of 2024, driven by an increase in our Class A common stock price during that period. Despite positive evidence of projected future business profitability in our U.S. entity, management determined that this did not outweigh the negative evidence to allow us to conclude it was more likely than not the deferred tax assets would be realized and therefore we recorded a full valuation allowance against these U.S. deferred tax assets as of December 31, 2024.

The changes in the valuation allowance were as follows:


	For the year ended December 31,
	2024		2023		2022
Valuation allowance, at beginning of year	$	(5,941)	$	(2,285)	$	(1,839)
Increase in valuation allowance recorded through earnings		(68,377)		(3,656)		(624)
Decrease in valuation allowance recorded through earnings		2,033		—		178
Valuation allowance, at end of year	$	(72,285)	$	(5,941)	$	(2,285)

The Company does not assert any earnings to be permanently reinvested with respect to the undistributed earnings of its foreign subsidiaries.

Significant judgement is required in evaluating our uncertain tax positions and determining our provision for income taxes. The total amount of gross unrecognized tax benefits was $1,427, $666, and $0 as of December 31, 2024, 2023, and 2022, respectively, which would affect our effective tax rate if recognized. Accrued interest and penalties were not material for the years ended December 31, 2024, 2023, or 2022.

The Company files tax returns as prescribed by the tax laws of the jurisdictions in which the Company operates. Under applicable U.S. federal statutes, tax years ended December 31, 2021 through December 31, 2024 remain subject to examination. Under applicable statutes, state and foreign corporate tax returns filed for the Company and its respective foreign subsidiaries for years ended December 31, 2019 through December 31, 2024 remain subject to examination by the respective authorities.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock Class A	Common Stock Class B	Additional Paid In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Class A	Class B	Total
Balance at Dec. 31, 2021	$ 42	$ 107	$ 222,621	$ 24,811	$ (17,497)			$ 230,084
Balance (in shares) at Dec. 31, 2021	42,286	106,807
Exercise of stock options, net	$ 1		1,164					1,165
Exercise of stock options, net (in shares)	800					800
Shares issued upon vesting of Restricted Stock Units, net			(283)					(283)
Shares issued upon vesting of Restricted Stock Units, net (in shares)	48
Shares issued upon vesting of Restricted Stock Awards, net			(164)					(164)
Shares issued upon vesting of Restricted Stock Awards, net (in shares)	173
Shares issued in connection with ESPP			1,951					1,951
Shares issued in connection with ESPP (shares)	207
Stock-based compensation expense			19,531					19,531
Class B shares exchanged for Class A shares	$ 7	$ (7)
Class B shares exchanged for Class A shares (in shares)	6,500	(6,500)
Unrealized gain from available-for-sale investments, net of tax					(36)			(36)
Foreign currency translation adjustments and revaluations, net of tax					(10,219)			(10,219)
Net loss				(12,304)				(12,304)
Balance at Dec. 31, 2022	$ 50	$ 100	244,820	12,507	(27,752)			229,725
Balance (in shares) at Dec. 31, 2022	50,014	100,307
Exercise of stock options, net	$ 3		(29)					(26)
Exercise of stock options, net (in shares)	2,468					2,468
Shares issued upon vesting of Restricted Stock Units, net	$ 1		(4,690)					(4,689)
Shares issued upon vesting of Restricted Stock Units, net (in shares)	511
Shares issued upon vesting of Restricted Stock Awards, net			(146)					(146)
Shares issued upon vesting of Restricted Stock Awards, net (in shares)	198
Shares issued in connection with ESPP			2,486					2,486
Shares issued in connection with ESPP (shares)	152
Stock-based compensation expense			32,714					32,714
Class B shares exchanged for Class A shares	$ 7	$ (7)
Class B shares exchanged for Class A shares (in shares)	7,646	(7,646)
Unrealized gain from available-for-sale investments, net of tax					32			32
Foreign currency translation adjustments and revaluations, net of tax					5,978			5,978
Net loss				(13,093)				(13,093)
Balance at Dec. 31, 2023	$ 61	$ 93	275,155	(586)	(21,742)			252,981
Balance (in shares) at Dec. 31, 2023	60,989	92,661				60,989	92,661
Exercise of stock options, net	$ 2		1,435					1,437
Exercise of stock options, net (in shares)	2,455					2,455
Shares issued upon vesting of Restricted Stock Units, net	$ 1		(14,205)					(14,204)
Shares issued upon vesting of Restricted Stock Units, net (in shares)	846
Shares issued upon vesting of Restricted Stock Awards, net			(290)					(290)
Shares issued upon vesting of Restricted Stock Awards, net (in shares)	84
Shares issued in connection with ESPP			2,998					2,998
Shares issued in connection with ESPP (shares)	116
Stock-based compensation expense			44,811					44,811
Class B shares exchanged for Class A shares	$ 7	$ (7)
Class B shares exchanged for Class A shares (in shares)	6,180	(6,180)
Purchase of capped calls, net of tax			(31,517)					(31,517)
Tax impact on capped calls			2					2
Unrealized gain from available-for-sale investments, net of tax					13			13
Foreign currency translation adjustments and revaluations, net of tax					(24,150)			(24,150)
Net loss				(52,729)				(52,729)
Balance at Dec. 31, 2024	$ 71	$ 86	$ 278,389	$ (53,315)	$ (45,879)			$ 179,352
Balance (in shares) at Dec. 31, 2024	70,670	86,481				70,670	86,481

INCOME TAXES - Net deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Deferred revenue	$ 1,512	$ 3,523
State operating loss carry forwards	3,674	2,682
Federal and foreign loss carry forwards	8,651	4,361
Accrued expenses	1,754	2,239
Accrued compensation	3,440	2,339
Deferred and stock-based compensation	13,826	19,008
Operating lease liabilities	4,185	5,151
Tax credits	5,160	3,662
Original issue discount	9,396
Depreciation and amortization	14,964	6,417
Other		2,721
Deferred tax assets	66,562	52,103
Valuation allowance	(72,285)	(5,941)	$ (2,285)	$ (1,839)
Total deferred tax assets		46,162
Total deferred tax assets	(5,723)
Deferred tax liabilities:
Prepaid expenses	(671)	(1,026)
Right of use asset	(3,006)	(3,428)
Other	(499)
Total deferred tax liabilities	(4,176)	(4,454)
Classification in the consolidated balance sheets
Deferred income tax assets	19	41,708
Deferred income tax liabilities	(9,918)
Net deferred tax assets (liabilities)	(9,899)
Net deferred tax assets (liabilities)		41,708
Deferred income tax asset
Classification in the consolidated balance sheets
Deferred income tax assets	19	$ 41,708
Deferred other liabilities
Classification in the consolidated balance sheets
Deferred income tax liabilities	$ (9,918)

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

9.GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and other intangible assets are as follows for the periods presented:


	As of December 31,
	2024		2023
Goodwill	$	357,823	$	257,842
Other intangible assets, net		5,198		2,396
Total	$	363,021	$	260,238

The changes in the carrying amount of goodwill are as follows for the periods presented:


	As of December 31,
		2024		2023
Balance, January 1	$	257,842	$	251,842
ecosio acquisition		119,668		—
Foreign currency translation adjustments		(19,687)		6,000
Balance, December 31, gross		357,823		257,842
Accumulated impairment losses		—		—
Balance, December 31, net	$	357,823	$	257,842

The Company recorded other intangible assets of $5,950 during the year ended December 31, 2024 in connection with the ecosio acquisition. Amortization expense related to these intangible assets was $644 for the year ended December 31, 2024, and is reflected in selling and marketing expense in the consolidated statement of net loss. The Company also recognized various amortizable other intangible assets in connection with previous acquisitions, including customer relationships, technology, and tradenames. The following tables provide additional information for our other intangible assets, which are individually not material to the consolidated financial statements:


						2024		2023
Weighted average amortization period (years)						3.3		3.5

	As of December 31, 2024					As of December 31, 2023
		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	12,276	$	8,362	$	8,348	$	6,385
Trademarks and tradenames		2,515		1,231		1,303		1,119
Developed technology		1,027		1,027		1,309		1,060
Total	$	15,818	$	10,620	$	10,960	$	8,564


For the year ended December 31,			Cost of Revenues, Software Subscriptions		Selling and Marketing Expense			Total Expense
2024			$	225	$	2,478	$	2,703
2023				243		2,641		2,884
2022				234		3,779		4,013

The following table presents estimated future amortization of intangible assets over their remaining estimated useful lives:


Year Ending December 31,
2025	$	2,089
2026		1,865
2027		1,244
2028		—
2029		—
Total	$	5,198

REVENUE RECOGNITION - Deferred revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
REVENUE RECOGNITION
Deferred revenue, current	$ 339,326	$ 290,143
Deferred revenue, non-current	4,840	2,577
Total deferred revenue	$ 344,166	$ 292,720	$ 279,136	$ 249,010

ACQUISITIONS - Net assets and liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Aug. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
ACQUISITIONS
Goodwill	$ 357,823		$ 257,842	$ 251,842
Ecosio
ACQUISITIONS
Deferred income tax liabilities adjustments	(3,879)
Goodwill adjustments	$ (3,841)
Cash and cash equivalents		$ 788
Accounts receivable		2,068
Prepaid expenses and other current assets		475
Property and equipment		63,984
Other assets		263
Goodwill		119,668
Other intangibles		5,950
Accounts payable		(1,118)
Operating lease liabilities		(229)
Third-party debt		(3,904)
Accrued expenses		(5,222)
Deferred revenue		(752)
Deferred income tax		(12,142)
Total		169,829
Ecosio \| Developed technology
ACQUISITIONS
Property and equipment		$ 63,800

SEGMENT DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2024

SEGMENT DISCLOSURES

Schedule of significant expenses categories and measures of segment profit (loss)

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


	For the year ended December 31,
		2024		2023		2022
Total Revenues	$	666,776	$	572,387	$	491,624
Less:
Cost of revenues – software subscriptions		175,580		162,920		142,071
Cost of revenues – services		65,071		60,888		51,061
Research & development		66,666		58,212		41,877
Selling & marketing		170,574		140,237		125,335
General & administrative		152,835		145,936		121,651
Depreciation & amortization		20,953		15,202		12,440
Change in fair value of acquisition contingent earn-outs		17,500		—		—
Other segment items ⁽¹⁾		(175)		6,502		5,271
Interest (income) expense, net		(4,137)		4,164		2,048
Income tax expense (benefit)		54,638		(8,581)		2,174
Net loss (GAAP)	$	(52,729)	$	(13,093)	$	(12,304)
Adjustments:
Interest expense (income), net ⁽²⁾		(4,137)		4,164		2,048
Income tax expense (benefit)		54,638		(8,581)		2,174
Depreciation and amortization – property and equipment		20,953		15,202		12,440
Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues		59,302		54,048		44,934
Amortization of acquired intangible assets – selling and marketing expense		2,478		2,641		3,779
Amortization of cloud computing implementation costs – general and administrative		4,007		2,570		—
Stock-based compensation expense		47,425		33,919		19,729
Severance expense		3,048		3,576		877
Acquisition contingent consideration		(2,575)		1,549		2,300
Litigation settlements		—		—		2,000
Change in fair value of acquisition contingent earn-outs		17,500		—		—
Transaction costs ⁽³⁾		2,032		4,853		696
Adjusted EBITDA (Non-GAAP)	$	151,942	$	100,848	$	78,673

⁽¹⁾ Other segment items include professional fees, contracted labor, transaction costs, acquisition related earn-out adjustments and foreign currency exchange gains (losses).
⁽²⁾ The years ended December 31, 2024 and 2023 include $423 and $4,020, respectively, for the change in the settlement value of a deferred purchase commitment liability recorded as interest expense.
⁽³⁾The year ended December 31, 2023 includes costs associated with a public tender offer, which was withdrawn by the Company in January 2024. The year ended December 31, 2022 includes offering costs related to the sale of shares of certain of our Class B shareholders, which are not representative of normal business operations.

STOCKHOLDERS EQUITY (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Mar. 15, 2022
Class A
Common Stock
Exercise of stock options, net (in shares)	2,455	2,468	800
Shares exchanged	267	314	91
Class A \| Restricted Stock Units
Common Stock
Shares issued upon vesting of Restricted Stock Units, net (in shares)	846	511	48
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	499	285	20
Class A \| Restricted Stock Awards
Common Stock
Shares issued upon vesting of Restricted Stock Units, net (in shares)	84	198	173
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	7	7	15
Class A \| ESPP
Common Stock
Shares issued upon vesting of Restricted Stock Units, net (in shares)	116	152	207
Class B
Common Stock
Exchange of shares	6,180	7,646	6,500
S Corporation
Common Stock
Amount of estimated dividends liability				$ 536

DEBT - Indebtedness (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Debt
Principal Amount - Current		$ 2,500
Net Carrying Amount - Current		2,500
Principal Amount - Noncurrent		44,375
Discounts and Deferred Financing Costs - Noncurrent		(316)
Net Carrying Amount - Noncurrent	$ 335,220	44,059
Total debt -Principal Amount	345,000	46,875
Total Discounts and Deferred Financing Costs	(9,780)	(316)
Total Debt Net Carrying Amount	335,220	46,559
Term Loan
Debt
Principal Amount - Current		2,500
Net Carrying Amount - Current		2,500
Principal Amount - Noncurrent		44,375
Discounts and Deferred Financing Costs - Noncurrent		(316)
Net Carrying Amount - Noncurrent		44,059
Total debt -Principal Amount		$ 46,875
Convertible Notes
Debt
Total debt -Principal Amount	345,000
Total Discounts and Deferred Financing Costs	(9,780)
Total Debt Net Carrying Amount	$ 335,220

ACQUISITIONS - Asset acquisition (Details) - Ryan, LLC Artificial Intelligence Tax Categorization $ in Thousands	May 31, 2024 USD ($)
Asset Acquisition
Consideration paid	$ 6,075
Transaction costs	$ 75
Term for earnout payments and referral fees	5 years
Annual referral fees payment percentage	35.00%
Cloud-based customer solutions
Asset Acquisition
Weighted average amortization period (years)	5 years
Minimum
Asset Acquisition
Annual earnout payment percentage	0.00%
Maximum
Asset Acquisition
Annual earnout payment percentage	35.00%

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Schedule of components of net income (loss) before income taxes


	For the year ended December 31,
	2024		2023		2022
U.S.	$	9,174	$	(3,126)	$	5,827
Foreign		(7,265)		(18,548)		(15,957)
Net income (loss) before income taxes	$	1,909	$	(21,674)	$	(10,130)

Schedule of Income tax benefit (expense)


	For the year ended December 31,
	2024		2023		2022
Current income taxes:
Federal	$	1,448	$	(279)	$	1,696
State and local		855		1,568		1,068
Foreign		2,204		1,347		577
Total current		4,507		2,636		3,341
Deferred income taxes:
Federal		42,346		(9,224)		904
State and local		9,111		(1,552)		72
Foreign		(1,326)		(441)		(2,143)
Total deferred		50,131		(11,217)		(1,167)
Income tax expense (benefit)	$	54,638	$	(8,581)	$	2,174

Schedule of reconciliation of the effective tax rate to tax


	2024				2023				2022
	Total		Tax Rate		Total		Tax Rate		Total		Tax Rate
Pretax net income (loss)	$	1,909			$	(21,674)			$	(10,130)
Taxes:
U.S. federal income tax at statutory rate	$	401	21.0	%	$	(4,552)	21.0	%	$	(2,128)	21.0	%
State income taxes		900	47.1	%		289	(1.3)	%		441	(4.4)	%
Stock-based compensation expense		(20,559)	(1,077.0)	%		(6,236)	28.8	%		1,787	(17.6)	%
Impact of foreign operations		833	43.6	%		1,463	(6.8)	%		1,352	(13.3)	%
Transaction costs		431	22.6	%		—	0.0	%		176	(1.7)	%
U.S. taxation of foreign earnings		2	0.1	%		(245)	1.1	%		(179)	1.8	%
Nondeductible compensation		3,948	206.8	%		2,822	(13.0)	%		485	(4.8)	%
Tax credits		(4,920)	(257.7)	%		(5,818)	26.8	%		(341)	3.4	%
Change in valuation allowance		67,135	3,516.8	%		3,386	(15.6)	%		427	(4.2)	%
Purchase commitment and contingent consideration liabilities		6,186	324.0	%		—	0.0	%		—	0.0	%
Changes in prior year unrecognized tax benefits		98	5.1	%		451	(2.1)	%		—	0.0	%
Other permanent items, net		183	9.7	%		(141)	0.7	%		154	(1.7)	%
Taxes and effective tax rate	$	54,638	2,862.1	%	$	(8,581)	39.6	%	$	2,174	(21.5)	%

Schedule of significant components of the Company's net deferred tax assets (liabilities)


	As of December 31,
Deferred tax assets:	2024		2023
Deferred revenue	$	1,512	$	3,523
State operating loss carry forwards		3,674		2,682
Federal and foreign loss carry forwards		8,651		4,361
Accrued expenses		1,754		2,239
Accrued compensation		3,440		2,339
Deferred and stock-based compensation		13,826		19,008
Operating lease liabilities		4,185		5,151
Tax credits		5,160		3,662
Original issue discount		9,396		—
Depreciation and amortization		14,964		6,417
Other		—		2,721
Deferred tax assets		66,562		52,103
Valuation allowance		(72,285)		(5,941)
Total deferred tax assets		(5,723)		46,162
Deferred tax liabilities:
Prepaid expenses		(671)		(1,026)
Right of use asset		(3,006)		(3,428)
Other		(499)		—
Total deferred tax liabilities		(4,176)		(4,454)
Net deferred tax assets (liabilities)	$	(9,899)	$	41,708

Classification in the consolidated balance sheets:
Deferred income tax assets	$	19	$	41,708
Deferred income tax liabilities		(9,918)		—
Net deferred tax assets (liabilities)	$	(9,899)	$	41,708

Schedule of changes in valuation allowance


	For the year ended December 31,
	2024		2023		2022
Valuation allowance, at beginning of year	$	(5,941)	$	(2,285)	$	(1,839)
Increase in valuation allowance recorded through earnings		(68,377)		(3,656)		(624)
Decrease in valuation allowance recorded through earnings		2,033		—		178
Valuation allowance, at end of year	$	(72,285)	$	(5,941)	$	(2,285)

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2024	Feb. 21, 2025	Jun. 30, 2024
Document Information:
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Document Transition Report	false
Entity File Number	001-39413
Entity Registrant Name	Vertex, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2081753
Entity Address, Address Line One	2301 Renaissance Blvd
Entity Address, City or Town	King of Prussia
Entity Address State Or Province	PA
Entity Address, Postal Zip Code	19406
City Area Code	800
Local Phone Number	355-3500
Title of 12(b) Security	Class A Common Stock, Par Value $0.001 Per Share
Trading Symbol	VERX
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 2,080,796,194
Entity Central Index Key	0001806837
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Name	Crowe LLP
Auditor Location	Oakbrook Terrace, Illinois
Auditor Firm ID	173
Class A
Document Information:
Entity Common Stock, Shares Outstanding		71,702,437
Class B
Document Information:
Entity Common Stock, Shares Outstanding		86,480,641

SEGMENT DISCLOSURES

12 Months Ended

Dec. 31, 2024

SEGMENT DISCLOSURES

SEGMENT DISCLOSURES

16. SEGMENT DISCLOSURES

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

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

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


	For the year ended December 31,
		2024		2023		2022
Total Revenues	$	666,776	$	572,387	$	491,624
Less:
Cost of revenues – software subscriptions		175,580		162,920		142,071
Cost of revenues – services		65,071		60,888		51,061
Research & development		66,666		58,212		41,877
Selling & marketing		170,574		140,237		125,335
General & administrative		152,835		145,936		121,651
Depreciation & amortization		20,953		15,202		12,440
Change in fair value of acquisition contingent earn-outs		17,500		—		—
Other segment items ⁽¹⁾		(175)		6,502		5,271
Interest (income) expense, net		(4,137)		4,164		2,048
Income tax expense (benefit)		54,638		(8,581)		2,174
Net loss (GAAP)	$	(52,729)	$	(13,093)	$	(12,304)
Adjustments:
Interest expense (income), net ⁽²⁾		(4,137)		4,164		2,048
Income tax expense (benefit)		54,638		(8,581)		2,174
Depreciation and amortization – property and equipment		20,953		15,202		12,440
Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues		59,302		54,048		44,934
Amortization of acquired intangible assets – selling and marketing expense		2,478		2,641		3,779
Amortization of cloud computing implementation costs – general and administrative		4,007		2,570		—
Stock-based compensation expense		47,425		33,919		19,729
Severance expense		3,048		3,576		877
Acquisition contingent consideration		(2,575)		1,549		2,300
Litigation settlements		—		—		2,000
Change in fair value of acquisition contingent earn-outs		17,500		—		—
Transaction costs ⁽³⁾		2,032		4,853		696
Adjusted EBITDA (Non-GAAP)	$	151,942	$	100,848	$	78,673

⁽¹⁾ Other segment items include professional fees, contracted labor, transaction costs, acquisition related earn-out adjustments and foreign currency exchange gains (losses).
⁽²⁾ The years ended December 31, 2024 and 2023 include $423 and $4,020, respectively, for the change in the settlement value of a deferred purchase commitment liability recorded as interest expense.
⁽³⁾The year ended December 31, 2023 includes costs associated with a public tender offer, which was withdrawn by the Company in January 2024. The year ended December 31, 2022 includes offering costs related to the sale of shares of certain of our Class B shareholders, which are not representative of normal business operations.

Additionally, the Company considers stock-based compensation expense a significant expense category. For further information, refer to Note 13, “Employee Benefit and Deferred Compensation Plans.”

As the Company operates solely within one segment, total assets, property and equipment, net, and capitalized software, net are reported at the consolidated level on the consolidated balance sheets. The Company’s assets include both

current and long-lived assets, and corporate assets. As of December 31, 2024 and 2023, $687 and $827, respectively, of the Company’s property and equipment assets were held outside of the U.S.

Depreciation and amortization, property and equipment additions, and capital software additions are reported at the consolidated level on the Consolidated Statements of Cash Flows.

The Company disaggregates revenue from contracts with customers based on geographical regions, timing of revenue recognition, and the major product and service types as described in Note 1, “Summary of Significant Accounting Policies.” For each of the years ended December 31, 2024, 2023, and 2022, approximately 8% of the Company’s revenues were generated outside of the U.S. None of the Company’s customers represented more than 10% of total revenues for the years ended December 31, 2024, 2023 or 2022. For further information including disaggregation of revenues, refer to Note 2, “Revenue Recognition.”

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

DEBT (Tables)

12 Months Ended

Dec. 31, 2024

DEBT

Schedule of debt


	As of December 31, 2024						As of December 31, 2023
		Principal Amount		Discounts and Deferred Financing Costs		Net Carrying Amount		Principal Amount		Discounts and Deferred Financing Costs		Net Carrying Amount

Term Loan	$	—	$	—	$	—	$	2,500	$	—	$	2,500
Current portion of long-term debt		—		—		—		2,500		—		2,500

Term Loan		—		—		—		44,375		(316)		44,059
Debt, net of current portion		—		—		—		44,375		(316)		44,059

Convertible senior notes, non-current		345,000		(9,780)		335,220		—		—		—
Total debt	$	345,000	$	(9,780)	$	335,220	$	46,875	$	(316)	$	46,559

Schedule of interest expense


	For the year ended December 31,
		2024		2023
Contractual interest expense	$	1,761	$	—
Amortization of issuance costs		1,505		—
Total interest expense, convertible senior Notes	$	3,266	$	—

Schedule of debt maturities


Year Ending December 31,
2025	$	—
2026		—
2027		—
2028		—
2029 and thereafter		345,000
Total debt, net of financing costs	$	345,000

REVENUE RECOGNITION - Changes to deferred revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
REVENUE RECOGNITION
Beginning balance	$ 292,720	$ 279,136	$ 249,010
Additional amounts deferred	718,222	585,971	521,750
Revenues recognized	(666,776)	(572,387)	(491,624)
Ending balance	$ 344,166	$ 292,720	$ 279,136

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Compensation, Self-insurance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Compensation plans:
Self insurance reserve	$ 2,240	$ 2,246
ESPP
Compensation plans:
Discount	15.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Vertex, Inc. (“Vertex”) and its consolidated subsidiaries (collectively, the “Company”) operate as solutions providers of state, local and value added tax calculation, compliance, and analytics, offering software products that are sold through software license and software as a service (“cloud”) subscriptions. The Company also provides implementation and training services in connection with its software license and cloud subscriptions, transaction tax returns outsourcing, and other tax-related services. The Company sells to customers located throughout the United States of America (“U.S.”) and internationally.

Basis of Consolidation

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and include the accounts of the Company. All intercompany transactions have been eliminated in consolidation.

On August 30, 2024, the Company completed its acquisition of ecosio GmbH (“ecosio”). Upon its acquisition, ecosio became a wholly owned subsidiary of the Company, and its operations have been included in the Company’s consolidated financial statements commencing on the acquisition date.

The Company had an 80% and 65% controlling equity interest in Systax Sistemas Fiscais LTDA (“Systax”), a provider of Brazilian transaction tax content and software at December 31, 2023 and 2022, respectively. Systax was determined to be a variable interest entity and the accounts were included in the consolidated financial statements. Vertex did not have full decision-making authority over Systax; however, Vertex was the entity that most significantly participated in the variability of the fair value of Systax’s net assets and was considered the entity most closely associated to Systax. As such, Vertex was deemed the primary beneficiary of Systax and consolidated Systax into its consolidated financial statements. On June 5, 2024, Vertex acquired the remaining 20% equity interest in Systax. Systax is now a wholly owned subsidiary of the Company and continues to be consolidated into the consolidated financial statements.

Segments

Concentration of Credit Risk

Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, which includes highly liquid investment securities, available-for-sale securities, funds held for customers and accounts receivable.

The Company maintains the majority of its cash and cash equivalent balances and funds held for customers in four banks. These amounts exceed federally insured (“FDIC”) limits. The Company periodically evaluates the creditworthiness of the banks. The Company has not experienced any losses in these accounts and believes they are not exposed to significant credit risk on such accounts.

The Company does not require collateral from its customers. Allowances are maintained for credit losses. Credit risk related to accounts receivable is limited due to the industry and geographic diversity within the Company's customer base. No single customer accounted for more than 10% of revenues for the years ended December 31, 2024, 2023, and 2022.

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a measurement date. A three-level fair value hierarchy (the “Fair Value Hierarchy”) prioritizes the inputs used to measure fair value. The Fair Value Hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. Classification in the Fair Value Hierarchy is based on the lowest of the following levels that is significant to the measurement:

Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs are quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3: Inputs are unobservable inputs based on the Company’s assumptions and valuation techniques used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation.

The Company’s assessment of the significance of an input to a fair value measurement requires judgment, which may affect the determination of fair value and the measurement’s classification within the Fair Value Hierarchy.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity, revenues, and expenses during the reporting period. Significant estimates used in preparing these consolidated financial statements include: (i) the estimated allowance for subscription cancellations; (ii) expected credit losses associated with the allowance for doubtful accounts; (iii) allowance for credit losses on available-for-sale debt securities; (iv) the reserve for self-insurance; (v) assumptions related to achievement of technological feasibility for software developed for sale; (vi) product life cycles; (vii) estimated useful lives and potential impairment of long-lived assets, intangible assets, and capitalized cloud computing arrangement software implementation costs; (viii) potential impairment of goodwill; (ix) determination of the fair value of tangible and intangible assets acquired, liabilities assumed, and consideration transferred in acquisitions; (x) amortization period of deferred commissions; (xi) Black-Scholes-Merton option pricing model (“Black-Scholes model”) input assumptions used to determine the fair value of certain stock-based compensation awards and Employee Stock Purchase Plan (“ESPP”) purchase rights; (xii) measurement of future purchase commitment, fair value of contingent consideration liabilities related to cash and stock earn-out payments, and contingent consideration and deferred purchase consideration liabilities associated with acquisitions; and (xiii) the potential outcome of future tax consequences of events that have been recognized in the consolidated financial statements or tax returns. Actual results may differ from these estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an initial maturity date of three months or less to be cash equivalents. Funds held as investments in money market funds are included within cash and cash equivalents.

In accordance with Accounting Standards Update (“ASU”) No. 2016-18, Restricted Cash, the Company presents changes in restricted cash in the cash flow statement.

Funds Held for Customers

Funds held for customers in the consolidated balance sheets represents customer funds advanced for transaction tax return payments. Funds held for customers are restricted for the sole purpose of remitting such funds to satisfy obligations on behalf of such customers and are deposited at FDIC-insured institutions. Customer obligations are included in current liabilities in the consolidated balance sheets, as the obligations are expected to be settled within one year.

Property and Equipment

Property and equipment are stated at cost or fair value when acquired and presented net of accumulated depreciation. Normal maintenance and repairs are charged to expense, while major renewals and betterments are capitalized. Assets under finance leases are recorded at the present value of future lease payments. Assets under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets and are depreciated over the shorter of the asset’s useful life or lease term.

Depreciation and amortization are computed straight-line over the estimated useful lives of the assets, as follows:


Leasehold improvements		1 - 12 years
Internal-use software developed		3 - 5 years
Computer software purchased		3 - 7 years
Equipment		3 - 10 years
Furniture and fixtures		7 - 10 years

Software Development Costs

Internal-Use Software

The Company follows Accounting Standards Codification (“ASC”) 350-40 to account for development costs incurred for the costs of computer software developed or obtained for internal use. ASC 350-40 requires such costs to be capitalized once certain criteria are met. Capitalized internal-use software costs are primarily comprised of direct and contracted labor, and related expenses. ASC 350-40 includes specific guidance on costs not to be capitalized, such as overhead, general and administrative, and training costs. Internal-use software includes software utilized for cloud-based solutions as well as software for internal systems and tools. Costs are capitalized once the project is defined, funding is committed, and it is confirmed the software will be used for its intended use. Capitalization of these costs concludes once the project is substantially complete and the software is ready for its intended purpose. Post-configuration training and maintenance costs are expensed as incurred. Internal-use software is included in internal-use software developed in property and equipment in the consolidated balance sheets once available for its intended use. Depreciation expense for internal-use software utilized for cloud-based customer solutions and for software for internal systems and tools is included in cost of revenues, software subscriptions, and depreciation and amortization, respectively, in the consolidated statements of comprehensive loss.

Software Developed for Sale

The costs incurred for the development of computer software to be sold, leased, or otherwise marketed are capitalized in accordance with ASC 985-20, Costs of Software to be Sold, Leased or Marketed, when technological feasibility has been established. Technological feasibility generally occurs when all planning, design, coding, and testing activities are completed that are necessary to establish that the product can be produced to meet its design specifications, including functions, features, and technical performance requirements. The establishment of technological feasibility is an ongoing assessment of judgment by management with respect to certain external factors, including, but not limited to, anticipated

future revenues, estimated economic life, and changes in technology. Capitalized software includes direct and contracted labor and related expenses for software development for new products and enhancements to existing products and acquired software.

Amortization of capitalized software development costs begins when the product is available for general release. Amortization is provided on a product-by-product basis using the straight-line method over periods between three to five years and are reflected in cost of revenues - software subscriptions in the consolidated statements of comprehensive loss. Unamortized capitalized software development costs determined to be in excess of the net realizable value of the product are expensed immediately.

Capitalized software costs are subject to an ongoing assessment of recoverability based on anticipated future revenues and changes in software technologies at each balance sheet date. In the event of impairment, unamortized capitalized software costs are compared to the net realizable value of the related product and the carrying value of the related assets are written down to the net realizable value to the extent the unamortized capitalized costs exceed such value. The net realizable value is the estimated future gross revenues from the related product reduced by the estimated future costs of completing and disposing of such product, including the costs of providing related maintenance and customer support.

Cloud Computing Software Implementation Costs

The Company follows ASC 350-40 to account for development costs incurred for cloud computing software implementations. ASC 350-40 requires such costs to be capitalized once certain criteria are met. Costs are primarily comprised of contracted labor, direct labor, and related expenses. ASC 350-40 includes specific guidance on costs not to be capitalized, such as overhead, general and administrative, and training costs. Costs are capitalized once the project is defined, funding is committed, and it is confirmed the software will be used for its intended use. Capitalization of these costs concludes once the project is substantially complete and the software is ready for its intended purpose. Post-configuration training and maintenance costs are expensed as incurred.

Cloud computing software implementation costs incurred in hosting arrangements are capitalized and reported as a component of prepaid expenses and other current assets, and other assets, once available for their intended use. These costs are amortized using the straight-line method over their respective contract service periods, including periods covered by an option to extend, ranging from two to five years.

Amortization expense for capitalized cloud computing implementation costs for the years ended December 31, 2024 and 2023 were $4,007 and $2,570, respectively, and is included in general and administrative expense in the consolidated statements of comprehensive loss. There was no amortization expense for the year ended December 31, 2022.

Assessment of Long-Lived Assets

The Company reviews the carrying value of long-lived assets, including internal-use software, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. Whenever such events or circumstances are present, an impairment loss equal to the excess of the asset carrying value over its fair value, if any, is recorded.

Business Combinations

Upon acquisition of a company, the Company determines if the transaction is a business combination, which is accounted for using the acquisition method of accounting. Under the acquisition method, once control is obtained of a business, the assets acquired, liabilities assumed, consideration transferred and amounts attributed to noncontrolling interests, are recorded at fair value. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired, liabilities assumed, consideration transferred, and amounts attributed to noncontrolling

interests at the acquisition date. One of the most significant estimates relates to the determination of the fair value of these amounts. The determination of the fair values is based on estimates and judgments made by management. The Company’s estimates of fair value are based upon assumptions it believes to be reasonable, but which are inherently uncertain and unpredictable. Measurement period adjustments to these values as of the acquisition date are reflected at the time identified, up through the conclusion of the measurement period, which is the time at which all information for determination of the values of assets acquired, liabilities assumed, consideration transferred, and noncontrolling interests is received, and is not to exceed one year from the acquisition date (the “Measurement Period”). Thus, the Company may record adjustments to the fair value of these tangible and intangible assets acquired, liabilities assumed, consideration transferred, and noncontrolling interests, with the corresponding offset to goodwill during this Measurement Period. Additionally, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company would collect information and reevaluate these estimates and assumptions periodically and record any adjustments to preliminary estimates to goodwill, provided the Company is within the Measurement Period, with any adjustments to amortization of new or previously recorded identifiable intangibles being recorded to the consolidated statements of comprehensive loss in the period in which they arise. In addition, if outside of the Measurement Period, any subsequent adjustments to the acquisition date fair values are reflected in the consolidated statements of comprehensive loss in the period in which they arise.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired in a business combination. The Company evaluates goodwill for impairment annually at October 1 and whenever events or circumstances make it more likely than not that impairment may have occurred.

The Company has determined that its business comprises one reporting unit. The Company has the option to first assess qualitative factors to determine whether events or circumstances indicate it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, in which case a quantitative impairment test is not required.

As provided for by ASU 2017-04, Simplifying the Test for Goodwill Impairment, the quantitative goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired. An impairment loss is recognized for any excess of the carrying amount of the reporting unit over its fair value up to the amount of goodwill allocated to the reporting unit. Income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit are considered when measuring the goodwill impairment loss, if applicable.

Convertible Senior Notes

Convertible Senior Notes

The Company accounts for its Notes (as defined below) wholly as debt under ASU 2026-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20.) Debt issuance costs incurred in connection with the issuance of the Notes are reflected in the consolidated balance sheets as a direct deduction from the carrying amount of the Notes. These costs are amortized on a straight-line basis, which approximates the effective interest method, over the contractual term of the Notes and are included within interest expense (income), net on the consolidated statements of comprehensive loss.

Capped Call Transactions

Capped Call Transactions

Capped call transactions cover the aggregate number of shares of the Company’s common stock that will initially underlie the Notes. The Company also determined that the capped call option contracts meet the definition of a derivative under ASC Topic 815, “Derivatives and Hedging,” but are not required to be accounted for as a derivative as they meet the scope exception outlined in the guidance. The Company determined that the freestanding capped call option contracts qualify as equity under the accounting guidance and recognized the contract by recording an entry to additional paid-in capital in stockholders’ equity in its consolidated balance sheets. The capped call options are not remeasured.

Deferred Financing Costs

Deferred Financing Costs

The Company capitalizes costs related to obtaining, renewing, or extending loan agreements and amortizes these costs on a straight-line basis, which approximates the effective interest method, over the life of the loan. Deferred financing costs related to undrawn debt are reflected in other assets in the consolidated balance sheets in accordance with ASC 835-30, Interest—Imputation of Interest.

Stock-Based Compensation

The 2020 Incentive Award Plan (the “2020 Plan”) and the ESPP provide for the award of stock appreciation rights (“SARs”), stock options (“options”), restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance stock units (“PSUs”), and participation in the ESPP (collectively, the “awards”).

The awards are subject to, and the Company applies, the guidance set forth in ASC 718, Compensation—Stock Compensation, for the award of equity-based instruments.

The provisions of ASC 718 require a company to measure the fair value of stock-based compensation as of the grant date of the award. Stock-based compensation expense reflects the cost of employee services received in exchange for the awards.

Stock-based compensation expense for stock options issued under the 2020 Plan is measured based on the grant date fair value of the award and is estimated using the Black-Scholes model. Compensation cost is recognized on a straight-line basis over the requisite service or performance period associated with the award.

Stock-based compensation expense for RSAs and RSUs is based on the fair value of the Company’s underlying common stock on the date of grant. Compensation cost for RSAs and RSUs is recognized on a straight-line basis over the requisite service or performance period associated with the award. Stock-based compensation expense for PSUs is based on the fair value of the Company’s common stock on the date of grant and is subject to performance-based measurement criteria. Compensation cost for PSUs is recognized on a straight-line basis over the requisite service period associated with the award when the achievement of performance targets is deemed probable.

The ESPP permits participants to purchase Class A common stock through payroll deductions, up to a specified percentage of their eligible compensation. The plan is a compensatory plan as it allows participants to purchase stock at a 15% discount from the lower of the fair value of the Class A common on the first or last day of the ESPP offering period (the “ESPP Discount”). The ESPP is accounted for as an equity classified award. Stock-based compensation expense for the ESPP is measured based on the fair value of the ESPP award at the start of the offering period. The fair value is comprised of the value of the ESPP Discount and the value associated with the variability in the Class A common stock price during the offering period (the “Call/Put”), which is estimated using the Black-Scholes model. Compensation cost is recognized on a straight-line basis over the respective offering period.

The Company has elected to recognize award forfeitures as they occur.

Leases

In accordance with ASU No. 2016-02, Leases (“ASC 842”), the Company determines if an arrangement is or contains a lease at its inception. The Company has elected not to recognize on the balance sheet leases with terms of one year or less as a practical expedient.

For leases with terms greater than 12 months, the Company records an operating lease right-of-use asset or finance lease asset and related lease liability at the present value of lease payments over the lease term. The implicit rate for

individual leases is generally not readily determinable; therefore, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. Leases with an option to extend the related lease term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. The Company recognizes expense for operating leases on a straight-line basis over the lease term plus any variable lease costs.

The Company does not recognize a right-of-use asset or lease liability for leases with an initial term equal to or less than 12 months (“short-term leases”) on its consolidated balance sheets. The Company recognizes expense on short-term leases in the consolidated statements of comprehensive loss on a straight-line basis over the lease term.

Self-insurance

The Company is self-insured for the majority of its health insurance costs, including medical claims subject to certain stop-loss provisions. Management periodically reviews the adequacy of the Company’s stop-loss insurance coverage. The Company records an estimate of claims incurred but not reported, based on management’s judgment and historical experience. Self-insurance accruals are $2,240 and $2,246 at December 31, 2024 and 2023, respectively, and are reflected in accrued salaries and benefits in the consolidated balance sheets. Material differences may result in the amount and timing of insurance expense if actual experience differs significantly from management’s estimates.

Revenue Recognition

Revenue from contracts with customers

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, (“ASC 606”). Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct, and accounted for as separate performance obligations. Revenue is recognized net of allowance for subscription and non-renewal cancellations and any taxes collected from customers, which are subsequently remitted to governmental authorities.

Nature of goods and services

Licenses for on-premise software subscriptions provide the customer with a right to use the software as it exists when made available to the customer. Customers purchase a subscription to these licenses, which includes the related software and tax content updates and product support. The updates and support, which are part of the subscription agreement, are essential to the continued utility of the software; therefore, the Company has determined the software and the related updates and support to be a single performance obligation. Accordingly, when on-premise software is licensed, the revenue associated with this combined performance obligation is recognized ratably over the license term as these subscriptions are provided for the duration of the license term. Revenue recognition begins on the later of the beginning of the subscription period or the date the software is made available to the customer to download.

Cloud-based subscriptions allow customers to use Company-hosted software over the contract period without taking possession of the software. The cloud-based offerings also include related updates and support. Revenue recognition begins on the later of the beginning of the subscription period or the date the customer is provided access to the cloud-based solutions. Cloud-based contracts consistently provide a benefit to the customer during the subscription period; thus, the associated revenue is recognized ratably over the related subscription period.

Revenue from deliverable-based services is recognized as services are delivered. Revenue from fixed fee services is recognized as services are performed using the cost-to-cost input method.

The Company has elected the “right to invoice” practical expedient for revenue related to services that are billed on an hourly basis, which enables revenue to be recognized as the services are performed.

The Company has determined that the methods applied to measuring its progress toward complete satisfaction of performance obligations recognized over time are a faithful depiction of the transfer of control of software subscriptions and services to customers.

Significant Judgments

Contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Identification of the amortization periods of material rights and contract costs requires significant judgment by management.

Payment Terms

Payment terms and conditions vary by contract, although the Company’s terms generally include a requirement of payment within 30-60 days. In instances where the timing of revenue recognition differs from the timing of payment, the Company has determined that its contracts do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing products and services, not to receive financing from customers or to provide customers with financing.

Cost of Revenues

Cost of revenues, software subscriptions include the direct cost to develop, host, and distribute software products, the direct cost to provide customer support, and amortization of costs capitalized for software developed for sale, for internal-use software utilized for cloud-based subscriptions and for certain acquired intangible assets. Cost of revenues, services include the direct costs of implementation, training, transaction tax returns outsourcing, and other tax-related services.

Reimbursable Costs

Reimbursable costs passed through and invoiced to customers of the Company are recorded as services revenues with the associated expenses recorded as cost of revenues, services in the consolidated statements of comprehensive loss. These amounts were $431, $17, and $133 for the years ended December 31, 2024, 2023, and 2022, respectively.

Research and Development

Research and development costs consist primarily of personnel and related expenses for research and development activities including salaries, benefits, and other compensation. Research and development costs are expensed as incurred in accordance with ASC 730, Research and Development, and are included in the consolidated statements of comprehensive loss.

Advertising

Advertising expense is recorded as incurred and is reflected in selling and marketing expense in the consolidated statements of comprehensive loss. Total advertising expense was $26,333, $26,000, and $26,529 for the years ended December 31, 2024, 2023, and 2022, respectively.

Foreign Currency

The Company transacts business in various foreign currencies. Management has concluded that the local country’s currency is the functional currency of its foreign operations. Consequently, operating activities outside the U.S. are translated into U.S. dollars using average exchange rates, while assets and liabilities of operations outside the U.S. are translated into U.S. dollars using exchange rates at the balance sheet date. The effects of foreign currency translation adjustments are included in total stockholders’ equity as a component of accumulated other comprehensive loss in the consolidated balance sheets. Related periodic movements in exchange rates are included in other comprehensive loss in the consolidated statements of comprehensive loss. Other operating expense, net in the consolidated statements of comprehensive loss includes net foreign exchange transaction (losses) of $(1,067), $(109), and $(38) for the years ended December 31, 2024, 2023, and 2022, respectively.

Investments

Investments

The Company’s investment securities portfolio consists of the following: money market mutual funds invested in high quality, short-term money market instruments which are issued and payable in U.S. dollars (“Money Market Funds”), bank and corporate issued commercial paper (“Commercial Paper”), corporate bonds (“Corporate Bonds”), and U.S. treasury securities (“Treasury Securities”). The Money Market Funds and a portion of the Commercial Paper are considered cash and cash equivalents due to their short maturity dates. These securities are carried at fair value, with the realized holding gains and (losses), net of tax, reported in the interest expense, net line of the consolidated statements of comprehensive loss. Realized holding gains and (losses), net of tax, were not material. The Money Market Funds qualify as equity securities per ASC 321, Investments – Equity Securities. The Commercial Paper, Corporate Bonds, and U.S. Treasury Securities qualify as debt securities per ASC 320, Investments– Debt Securities, and have been classified as available-for-sale as they may be liquidated and used for general corporate purposes. These securities are carried at fair value, with the unrealized holding gains and (losses), net of tax, reported in other comprehensive (income) loss and do not affect earnings until realized. None of the Company’s debt securities are classified as trading or held-to-maturity.

Income Taxes

Income Taxes

The Company accounts for income taxes using the asset and liability method, which recognizes deferred tax assets and liabilities for future tax consequences of events that have been previously recognized in the Company’s consolidated financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on provisions of the enacted tax law and rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The effects of future changes in tax laws or rates are not anticipated. Vertex and its subsidiaries are generally taxed at the corporate level, and the income tax provision or benefit is based on income or loss sourced to the U.S. federal and state jurisdictions as well as foreign jurisdictions at the tax rates applicable in those jurisdictions. A valuation allowance is recorded when it is more likely than not that some or all the deferred tax assets will not be realized.

The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process whereby: (i) management determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (ii) for those tax positions that meet the more likely than not recognition threshold, management recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest related to underpayment of income taxes as interest expense and penalties as other operating expenses in the consolidated statements of comprehensive loss.

The Company assesses its income tax positions and records tax benefits or expense based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. Variations in the actual outcome of these future tax consequences could materially impact the consolidated financial statements.

Total Comprehensive Loss

Total comprehensive loss consists of net loss and other comprehensive (income) loss. Other comprehensive (income) loss refers to revenues, expenses, gains and losses that under U.S. GAAP are recorded as elements of stockholders' equity but are excluded from net loss. Other comprehensive (income) loss is comprised of foreign currency translation adjustments and revaluations, and unrealized (gains) losses on available-for-sale debt securities.

Earnings Per Share ("EPS")

Earnings Per Share (“EPS”)

The Company has two classes of common stock outstanding and thus calculates EPS following the two-class method. This method allocates earnings for the respective periods between the two classes of common stock in proportion to the weighted average shares outstanding for each class of common stock as a percentage of total weighted average shares of both classes of common stock outstanding. Neither the Class A nor Class B common stock has any liquidity or dividend preferences and are both considered to be participating securities.

Basic and diluted net income (loss) per share attributable to common stockholders is calculated using the treasury stock and if-converted methods. The basic net income (loss) per share attributable to Class A common stockholders includes RSAs, RSUs, PSUs, and ESPP shares once vesting or purchase contingencies are resolved, and the related shares are deemed to be outstanding. The diluted net income (loss) per share attributable to Class A common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, all options to purchase shares of Class A common stock and nonvested RSAs and RSUs are considered common stock equivalents. PSUs are included in the computation of diluted net income per share only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be satisfied if the end of the reporting period were the end of the related performance period, and if the effect would be dilutive. The portion of ESPP shares for which the Company has received payments but for which the related shares are not yet issuable are also considered potential common stock equivalents. Additionally, the dilutive effect of shares issuable upon conversion of the Notes is included in the calculation of diluted EPS by application of the if-converted method. In connection with the issuance of the Notes, the Company entered into the Capped Calls Transactions, which are not included for purposes of calculating the number of diluted weighted-average shares outstanding, as their effect would be anti-dilutive. The Company has excluded the effect of its Class A common stock to be issued in connection with the Stock Earn-outs (as defined in Note 3) as the underlying performance conditions were not satisfied prior to the end of the reporting period, nor would they be satisfied if the end of the reporting period were the end of the related performance period. In periods of net loss available to common stockholders, diluted calculations are equal to basic calculations because the inclusion of potential common stock equivalents would be anti-dilutive.

Supplemental Balance Sheet Information

Supplemental balance sheet disclosures are as follows for the respective periods:


		As of December 31,
	2024		2023
Prepaid expenses and other current assets:
Prepaid expenses	$	15,223	$	11,558
Unamortized cloud computing implementation costs		4,088		3,995
Prepaid insurance		1,488		521
Prepaid licenses and support		15,879		10,099
Prepaid expenses and other current assets	$	36,678	$	26,173

Other assets:
Unamortized cloud computing implementation costs	$	10,173	$	12,475
Other assets		3,900		3,538
Total other assets	$	14,073	$	16,013

Accrued expenses:
Accrued general expenses	$	14,862	$	25,998
Accrued contract labor and professional fees		15,152		13,372
Accrued income and other taxes		5,155		5,365
Accrued expenses	$	35,169	$	44,735

Supplemental Cash Flow Disclosures

Supplemental cash flow disclosures are as follows for the respective periods:


	For the year ended December 31,
	2024		2023		2022
Cash paid for:
Interest	$	3,287	$	3,729	$	2,221
Income taxes, net of refunds		8,593		5,652		3,059
Cash paid included in the measurement of lease liabilities:
Operating cash flows from operating leases		3,679		4,019		4,240
Non-cash investing and financing activities:
Change in settlement value of deferred purchase commitment liability		423		4,020		990
Change in fair value of contingent consideration liabilities		14,925		1,549		2,300
Leased assets obtained in exchange for new finance lease liabilities		48		124		1,069

Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Segment Reporting

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07, improve reportable segment disclosure requirements through enhanced disclosures. These new requirements include: disclosure of significant segment expenses regularly provided to the CODM, the title and position of the CODM, and the extension of certain annual disclosures to interim periods, permitting the disclosure of multiple measures of segment profit or loss, provided that certain criteria are met. The standard also clarifies that entities with a single reportable segment are subject to new and existing segment reporting requirements. Entities must adopt the changes to the segment reporting guidance on a retrospective basis. The Company adopted the standard effective for its annual period ending December 31, 2024. The adoption of the standard only impacted disclosures. See Note 16, “Segment Disclosures.”

Recently Issued Accounting Pronouncements

Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):Improvements to Income Tax Disclosures. Entities will be required to disclose additional information in specified categories in the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. The standard also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold and eliminates certain existing disclosures. In addition to new disclosures associated with the rate reconciliation, the standard requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. The standard will be effective for annual periods in fiscal years beginning after December 15, 2024, and for interim periods for fiscal years beginning after December 15, 2025 with early adoption permitted. The Company is continuing to assess the potential impacts of the standard, and it does not expect this pronouncement to have a material effect on its financial statements, other than the required changes to the income tax disclosures.

Disaggregation of Income Statement Expenses

On November 4, 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Entities will be required to provide disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements for both interim and annual reporting periods. The standard does not change the expense captions that an entity presents on the face of the income statement. The standard will be effective for annual periods beginning after December 15, 2026, and for interim periods for fiscal years beginning after December 15, 2027, with early adoption permitted. Entities are required to adopt the standard prospectively; however, entities are permitted to apply the amendments retrospectively to any or all prior periods presented in the financial statements. The Company is continuing to assess the potential impacts of the standard, and it does not expect this pronouncement to have a material effect on its financial statements, other than the required changes to the disclosures.

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Long-Term Rewards Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Compensation plans:
Performance period (in years)	three-year
Long-Term Rewards Plan
Compensation plans:
Compensation expense	$ 0	$ 0	$ 892
Deferred compensation, current		$ 2,237	$ 4,023

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

DEBT - Credit Agreement (Details) $ / shares in Units, $ in Thousands							12 Months Ended
	Nov. 04, 2024 USD ($)	Jul. 01, 2024 D $ / shares	May 10, 2024 USD ($)	Apr. 26, 2024 USD ($) $ / shares	Apr. 23, 2024 USD ($) $ / shares shares	Mar. 08, 2022 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($)	Mar. 31, 2020 USD ($)
Debt
Proceeds from Convertible Debt							$ 345,000
Share price \| $ / shares					$ 55.88
Purchase of capped calls							31,517
Write-off of deferred financing costs							276	$ 370
Outstanding borrowings							$ 345,000		$ 46,875
Capped call transaction
Debt
Anti-dilutive shares \| shares					12,348
Purchase of capped calls					$ 42,366
Term Loan
Debt
Term of debt							5 years
Debt instrument interest rate percentage									6.46%
Repaid Term Loan balance			$ 46,332
Interest included in repaid Term Loan balance			82
Write-off of deferred financing costs			$ 276
Outstanding borrowings									$ 46,875
Previous Credit Agreement
Debt
Write off deferred financing costs						$ 370
Second Amendment To Credit Agreement
Debt
Line of credit, capacity						200,000
Financing costs						277
Payments of financing costs						983
Third Amendment To Credit Agreement
Debt
Financing costs									1,112
Fifth Amendment To Credit Agreement
Debt
Line of credit, capacity	$ 300,000
Financing costs							$ 1,167
Debt instrument, covenant, maximum dividends	$ 15,000
Debt instrument, covenant, maximum dividends consolidated EBITDA (as a percentage)	15.00%
Convertible Senior Notes 7.50 Percent, Due 2029
Debt
Principal amount				$ 345,000
Debt instrument interest rate percentage				0.75%
Additional principal amount				$ 45,000
Trading days \| D		20
Consecutive trading days \| D		10
Threshold stock price percentage		130.00%
Conversion price \| $ / shares		$ 47.21		$ 36.32
Convertible business days \| D		5
Consecutive trading days \| D		30
Percentage of stock price trigger		98.00%
Conversion rate		27.5315
Proceeds from Convertible Debt				$ 333,716
Cost of capped call transactions				$ 42,366
Line of Credit \| Previous Credit Agreement
Debt
Line of credit, capacity										$ 100,000
Line of Credit \| Second Amendment To Credit Agreement
Debt
Line of credit, capacity						200,000
Line of Credit \| Fifth Amendment To Credit Agreement
Debt
Line of credit, capacity	$ 300,000
Outstanding borrowings							$ 0		$ 0
Line of Credit \| Fifth Amendment To Credit Agreement \| New Base Rate Option
Debt
Variable interest rate (as a percentage)							8.00%
Line of Credit \| Fifth Amendment To Credit Agreement \| SOFR Option
Debt
Variable interest rate (as a percentage)							5.99%
New Term Loan \| Second Amendment To Credit Agreement
Debt
Principal amount						$ 50,000
Long-Term Debt \| Previous Credit Agreement
Debt
Principal amount										$ 175,000

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2024

PROPERTY AND EQUIPMENT

Schedule of major components of property and equipment


	As of December 31,
	2024		2023
Leasehold improvements	$	20,096	$	20,662
Equipment		14,386		22,012
Computer software purchased		1,344		2,690
Internal-use software developed:
Cloud-based customer solutions		237,232		142,302
Internal systems and tools		72,406		39,430
Furniture and fixtures		7,292		7,669
In-process internal-use software		28,916		28,883
Property and equipment		381,672		263,648
Less accumulated depreciation and amortization		(204,113)		(162,914)
Property and equipment, net	$	177,559	$	100,734

Schedule of major components of internal-use software


	As of December 31,
	2024		2023
Internal-use software developed	$	309,638	$	181,732
Less accumulated depreciation		(171,181)		(121,646)
Internal-use software developed, net of accumulated depreciation		138,457		60,086
In-process internal-use software		28,916		28,883
Internal-use software developed, net	$	167,373	$	88,969

Schedule of amounts capitalized for internal-use software and included in property and equipment additions on the consolidated statements of cash flows


		For the year ended December 31,
	2024		2023		2022
Cloud-based customer solutions	$	45,374	$	29,496	$	28,918
Internal systems and tools		19,024		17,751		13,356
Total	$	64,398	$	47,247	$	42,274

Schedule of amortization expense internally developed software


Year Ending December 31,	Internal Systems and Tools		Cloud-Based Customer Solutions
2025	$	17,779		33,764
2026		12,607		24,864
2027		4,113		13,699
2028		207		8,570
2029		—		22,854
Total	$	34,706	$	103,751

INCOME TAXES - Carryforwards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating loss carryforwards
Valuation allowance	$ (72,285)	$ (5,941)	$ (2,285)	$ (1,839)
Incremental valuation allowance	(66,344)
Foreign
Operating loss carryforwards
Operating Loss Carryforwards	48,238
Non operating loss carryforwards	44
U.S. Federal \| Research tax credit carryforward
Operating loss carryforwards
Tax credit carryforward, amount	5,160
State and local
Operating loss carryforwards
Operating Loss Carryforwards	$ 58,869

LEASES - Lease Costs, Weighted Average Term and Rates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Lease Cost, Weighted average term and discount rate:
Operating lease cost	$ 3,679	$ 4,019	$ 3,714
Amortization of lease assets	79	788	1,275
Interest on lease liabilities	6	8	18
Total lease cost	$ 3,764	$ 4,815	$ 5,007
Operating leases, weighted-average remaining lease term (in years)	3 years 8 months 12 days	4 years 8 months 12 days
Finance leases, weighted-average remaining lease term (in years)	1 year 1 month 6 days	2 years 1 month 6 days
Operating leases, weighted-average discount rate	2.40%	2.30%
Finance leases, weighted-average discount rate	6.10%	5.60%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Basis of Consolidation

Segments

Concentration of Credit Risk

Fair Value Measurement

Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Use of Estimates

Cash and Cash Equivalents

In accordance with Accounting Standards Update (“ASU”) No. 2016-18, Restricted Cash, the Company presents changes in restricted cash in the cash flow statement.

Funds Held for Customers

Property and Equipment

Depreciation and amortization are computed straight-line over the estimated useful lives of the assets, as follows:


Leasehold improvements		1 - 12 years
Internal-use software developed		3 - 5 years
Computer software purchased		3 - 7 years
Equipment		3 - 10 years
Furniture and fixtures		7 - 10 years

Software Development Costs

Internal-Use Software

Software Developed for Sale

Cloud Computing Software Implementation Costs

Assessment of Long-Lived Assets

Business Combinations

Goodwill

Convertible Senior Notes

Capped Call Transactions

Deferred Financing Costs

Stock-Based Compensation

The awards are subject to, and the Company applies, the guidance set forth in ASC 718, Compensation—Stock Compensation, for the award of equity-based instruments.

The Company has elected to recognize award forfeitures as they occur.

Leases

Self-insurance

Revenue Recognition

Revenue from contracts with customers

Nature of goods and services

Revenue from deliverable-based services is recognized as services are delivered. Revenue from fixed fee services is recognized as services are performed using the cost-to-cost input method.

Significant Judgments

Payment Terms

Cost of Revenues

Reimbursable Costs

Research and Development

Advertising

Foreign Currency

Investments

Income Taxes

Total Comprehensive Loss

Earnings Per Share (“EPS”)

Supplemental Balance Sheet Information

Supplemental balance sheet disclosures are as follows for the respective periods:


		As of December 31,
	2024		2023
Prepaid expenses and other current assets:
Prepaid expenses	$	15,223	$	11,558
Unamortized cloud computing implementation costs		4,088		3,995
Prepaid insurance		1,488		521
Prepaid licenses and support		15,879		10,099
Prepaid expenses and other current assets	$	36,678	$	26,173

Other assets:
Unamortized cloud computing implementation costs	$	10,173	$	12,475
Other assets		3,900		3,538
Total other assets	$	14,073	$	16,013

Accrued expenses:
Accrued general expenses	$	14,862	$	25,998
Accrued contract labor and professional fees		15,152		13,372
Accrued income and other taxes		5,155		5,365
Accrued expenses	$	35,169	$	44,735

Supplemental Cash Flow Disclosures

Supplemental cash flow disclosures are as follows for the respective periods:


	For the year ended December 31,
	2024		2023		2022
Cash paid for:
Interest	$	3,287	$	3,729	$	2,221
Income taxes, net of refunds		8,593		5,652		3,059
Cash paid included in the measurement of lease liabilities:
Operating cash flows from operating leases		3,679		4,019		4,240
Non-cash investing and financing activities:
Change in settlement value of deferred purchase commitment liability		423		4,020		990
Change in fair value of contingent consideration liabilities		14,925		1,549		2,300
Leased assets obtained in exchange for new finance lease liabilities		48		124		1,069

Recently Adopted Accounting Pronouncements

Segment Reporting

Recently Issued Accounting Pronouncements

Income Tax Disclosures

Disaggregation of Income Statement Expenses

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - ESPP - Option-pricing model key input assumptions (Details) - Initial Public Offering - ESPP - $ / shares	May 31, 2025	Nov. 30, 2024	May 31, 2024	Nov. 30, 2023	May 31, 2023
Fair Value Assumptions and Methodology
Fair market value of common stock	$ 54.64	$ 33.26	$ 27.82	$ 21.76	$ 17.21
Volatility	26.40%	41.70%	36.60%	39.40%	46.40%
Expected term (in years)	6 months	6 months	6 months	6 months	6 months
Risk-free interest rate	4.40%	5.40%	5.30%	5.40%	4.70%

CAPITALIZED SOFTWARE - Amortization expense (Details) - Software $ in Thousands	Dec. 31, 2024 USD ($)
Future amortization expense:
2025	$ 19,159
2026	12,350
2027	3,877
Total	$ 35,387

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2024

INVESTMENTS

Schedule of amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value aggregated by major security


	As of December 31, 2024
Investment securities available-for-sale:	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Allowance For Credit Losses		Fair Value
Commercial Paper	$	4,920	$	—	$	—	$	—	$	4,920
Corporate Bonds		250		—		—		—		250
U.S. Treasury Securities		5,970		14		(1)		—		5,983
Total investment securities available-for-sale	$	11,140	$	14	$	(1)	$	—	$	11,153


	As of December 31, 2023
Investment securities available for sale:	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Allowance For Credit Losses		Fair Value
Commercial paper	$	7,169	$	—	$	(1)	$	—	$	7,168
U.S. Treasury securities		3,628		—		(7)		—		3,621
Total investment securities available for sale	$	10,797	$	—	$	(8)	$	—	$	10,789

Schedule of length of time of gross unrealized losses and fair value of our securities available for sale


	As of December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
Investment securities available-for-sale without an allowance for credit losses:	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
U.S. Treasury Securities	$	—	$	—	$	600	$	(1)	$	600	$	(1)
Total investment securities available-for-sale	$	—	$	—	$	600	$	(1)	$	600	$	(1)




	As of December 31, 2023
	Less than 12 Months				12 Months or Longer				Total
Investment securities available for sale without an allowance for credit losses:	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Commercial paper	$	4,472	$	(1)	$	—	$	—	$	4,472	$	(1)
U.S. Treasury securities		—		—		2,043		(7)		2,043		(7)
Total investment securities available for sale	$	4,472	$	(1)	$	2,043	$	(7)	$	6,515	$	(8)

Schedule of fair value of our investment securities by major security type and contractual maturity


	As of December 31, 2024
	Due in 1 Year or Less		Due > 1 Year through 5 Years		Due > 5 Years through 10 Years		Due > 10 Years		Total
Fair value of investment securities available-for-sale:
Commercial Paper	$	4,920	$	—	$	—	$	—	$	4,920
Corporate Bonds		—		250		—		—		250
U.S. Treasury Securities		2,678		3,305		—		—		5,983
Total investment securities available-for-sale	$	7,598	$	3,555	$	—	$	—	$	11,153
Amortized cost of investment securities available-for-sale	$	7,595	$	3,545	$	—	$	—	$	11,140

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

DEBT

12 Months Ended

Dec. 31, 2024

DEBT

DEBT

10.DEBT

Credit Agreement

On March 31, 2020, the Company entered into a credit agreement (the “Previous Credit Agreement”) with a bank consisting of a $175,000 term loan (the “Previous Term Loan”) and a $100,000 committed line of credit (the “Previous Line of Credit”).

On March 8, 2022, the Company entered into the Second Amendment to Credit Agreement (the “Second Amendment”), with a banking syndicate, which amended the Previous Credit Agreement, providing for, among other modifications, (i) a new term loan in the aggregate amount of $50,000 (the “Term Loan”); (ii) an extension of the maturity date of the revolving facility (the “Line of Credit”) from March 2025 to March 2027; (iii) an increase in the Line of Credit commitment from $100,000 to $200,000; (iv) the Company’s option to select an applicable interest rate at either the bank base rate plus an applicable margin (the “New Base Rate Option”) or Secured Overnight Financing Rate (“SOFR”) plus an applicable margin (the “SOFR Option”); (v) modifications to the financial covenant performance levels which determine applicable margins; and (vi) modifications to certain covenants and events of default. Net proceeds from the Term Loan were used to fund ongoing working capital, capital expenditures, permitted distributions, permitted acquisitions, and general corporate purposes of the Company and its subsidiaries.

The Company paid $983 in financing costs in connection with the Second Amendment during 2022, which are amortizing over the remaining term of the Credit Agreement. The Company wrote off $370 in deferred financing fees pertaining to the Previous Credit Agreement associated with a bank exiting the Second Amendment. The remaining balance of deferred financing costs of $277 pertaining to the remaining bank associated with the Previous Credit Agreement are amortizing over the remaining term of the Credit Agreement. The portion of the deferred financing costs associated with the Line of Credit is reflected in other assets in the consolidated balance sheets at December 31, 2024 and 2023. The portion of the deferred financing costs associated with the Term Loan is reflected as a reduction of the Term Loan in the consolidated balance sheets at December 31, 2023.

On December 12, 2023, the Company entered into the Third Amendment to Credit Agreement (the “Third Amendment” and collectively with the Previous Credit Agreement and the Second Amendment, the “Credit Agreement”), with the existing banking syndicate, which provided funding for a proposed acquisition. On January 14, 2024, the Company withdrew its public tender offer related to the proposed acquisition. Certain provisions under the Third Amendment expired on April 30, 2024. The majority of the provisions provided by the Third Amendment were contingent upon the completion of the proposed acquisition, and therefore, immediately reverted to the terms of the Second Amendment due to the withdrawal of the public tender offer.

The Company incurred $1,112 in financing costs in connection with the Third Amendment during 2023, which are amortizing over the remaining term of the Credit Agreement. The portion of the deferred financing costs associated with the Line of Credit are reflected in other assets in the consolidated balance sheets at December 31, 2024. The portion of the deferred financing costs associated with the Line of Credit and the Term Loan are reflected in other assets, and as a reduction of the Term Loan, respectively, in the consolidated balance sheets at December 31, 2023.

On April 19, 2024, the Company entered into the Fourth Amendment to the Credit Agreement (the “Fourth Amendment”) with a banking syndicate, which provided for, among other things, amendments to certain definitions.

On November 4, 2024, the Company entered into a Fifth Amendment to the Credit Agreement (the “Fifth Amendment”), with a banking syndicate, which provided for, among other modifications, an increase in the Line of Credit commitment from $200,000 to $300,000 and an extension of the maturity date to November 4, 2029.

The Company incurred $1,167 in financing costs in connection with the Fifth Amendment during 2024, which are amortizing over the term of the Credit Agreement. The portion of the deferred financing costs associated with the Line of Credit are reflected in other assets in the consolidated balance sheets at December 31, 2024.

Outstanding borrowings under the Credit Agreement are collateralized by nearly all of the assets of the Company and contain financial and operating covenants. The Company was in compliance with these covenants at December 31, 2024 and 2023. The Credit Agreement also limits the declaration or payment of certain dividends, not to exceed, from and after the Credit Agreement closing date, the greater of (i) $15,000 and (ii) 15% of Consolidated EBITDA (as defined in the Credit Agreement) for the most recently ended test period.

Line of Credit

The Line of Credit expires in March 2029. The Company is required to pay a quarterly fee on the difference between the $300,000 allowed maximum borrowings and the unpaid principal balance outstanding under the Line of Credit at the applicable rate. At December 31, 2024, the New Base Rate Option and SOFR Option applicable to the Line of Credit borrowings were 8.00% and 5.99%, respectively. There were no outstanding borrowings under the Line of Credit at December 31, 2024 or 2023.

Term Loan

On May 10, 2024, the Company repaid the outstanding Term Loan balance of $46,332, which included $82 of interest. The Company also wrote off $276 in deferred financing fees pertaining to the Term Loan. The Term Loan required quarterly principal payments over five years, with a balloon payment due on March 8, 2027. The interest rate on the Term Loan was 6.46% at December 31, 2023, as the Company selected the SOFR Option. Outstanding borrowings under the Term Loan were $46,875 at December 31, 2023 and are reported in current portion of long-term debt and long-term debt, net of current portion, in the consolidated balance sheets.

Indenture and Notes

On April 26, 2024, the Company closed its offering of $345,000 aggregate principal amount of 0.750% Convertible Senior Notes due 2029 (the “Notes”) to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended. The Notes were issued pursuant to, and are governed by, an indenture (the “Indenture”) between the Company and U.S. Bank Trust Company, National Association, as trustee. The Notes, issued on April 26, 2024, include an additional $45,000 aggregate principal amount of Notes, issued pursuant to the full exercise by the initial purchasers of the Notes of their option to purchase additional Notes.

The Notes are the senior, unsecured obligations of the Company and are (i) ranked equal in right of payment with the Company’s senior unsecured indebtedness, (ii) senior in right of payment to the Company’s indebtedness that is expressly subordinated to the Notes, (iii) effectively subordinated to the Company’s senior secured indebtedness, to the extent of the value of the collateral securing that indebtedness, and (iv) structurally subordinated to all indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries.

The Notes bear interest at a rate of 0.750% per annum on the principal amount thereof, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on November 1, 2024. The Notes will mature on May 1, 2029 (the “maturity date”), unless earlier repurchased, redeemed or converted in accordance with their terms. On November 1, 2028, and thereafter, holders may convert their Notes anytime at their election, until the close of business on the second scheduled trading day immediately before the maturity date. Before November 1, 2028, holders have the right to convert their Notes only upon the occurrence of the following events:

●

During any calendar quarter after June 30, 2024 if the closing price of the Company's common stock for at least 20 trading days in a period of 30 consecutive trading days ending on and including the last trading day of the preceding calendar quarter is more than 130% of the then applicable conversion price (effectively $47.21) for the Notes per share of common stock.

●

During the five business days immediately after any ten consecutive trading day period in which the trading price per $1,000 principal amount of Notes, as determined following a request by a holder of Notes, for each day of that period was less than 98% of the product of the closing price of the Company’s common stock and the then applicable conversion rate.

●

If the Company calls any or all of the Notes for redemption, holders may convert all or any portion of their notes at any time prior to the close of business on the scheduled trading day prior to the redemption date, even if the Notes are not otherwise convertible at such time.

●

If specified distributions to holders of the Company’s common stock are made or specified corporate events occur.

As of December 31, 2024, the last reported sale price of the Company’s Class A common stock for at least 20 trading days during the 30 consecutive trading days ending on, and including, December 31, 2024, was greater than or equal to 130% of the conversion price of the Notes on each applicable trading day. Therefore, the Notes are convertible at the option of the holders of the Notes during the first quarter of 2025.

If a holder converts upon a make-whole fundamental change (as defined in the Indenture) or Company redemption, the holder may be eligible to receive a make-whole premium through an increase to the conversion rate.

Upon conversion, the Company will pay or deliver, as applicable, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock at the Company’s election. The initial conversion rate for the Notes is 27.5315 shares of Class A common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $36.32 per share of Class A common stock and is subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture.

The net proceeds from the offering of the Notes were $333,716, after deducting the initial purchasers’ discount and commissions, and other transaction and offering expenses. The Company used $42,366 of the net proceeds from this offering to fund the cost of the Capped Call Transactions (as defined below) and intends to use the remainder for working capital or other general corporate expenses, which may include capital expenditures, potential acquisitions, and strategic transactions.

Capped Call Transactions

In connection with the pricing of the Notes on April 23, 2024, the Company entered into privately negotiated capped call transactions (the “Base Capped Calls”) with certain financial institutions (together, the “Option Counterparties”). In connection with the exercise of the option to purchase the additional Notes in full, the Company entered into additional capped call transactions with the Option Counterparties (together, the “Additional Capped Call Transactions” and, together with the Base Capped Call Transactions, the “Capped Call Transactions”).

The cap price of the Capped Call Transactions will initially be $55.88 per share of Class A common stock, and is subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions are expected generally to reduce the potential dilution to the Class A common stock upon any conversion of the Notes and/or to offset any cash payments the Company is required to make in excess of the principal amount of the converted Notes, as the case may be, upon any conversion of the Notes. The Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, approximately 12,348 shares of the Company’s common stock. The

cost of the Capped Call Transactions was $42,366, which was included in additional paid-in capital, net of tax, in the consolidated balance sheets, with no remeasurement in subsequent periods as it meets the conditions for equity classification.

Our indebtedness at December 31, 2024 and 2023 was as follows:


	As of December 31, 2024						As of December 31, 2023
		Principal Amount		Discounts and Deferred Financing Costs		Net Carrying Amount		Principal Amount		Discounts and Deferred Financing Costs		Net Carrying Amount

Term Loan	$	—	$	—	$	—	$	2,500	$	—	$	2,500
Current portion of long-term debt		—		—		—		2,500		—		2,500

Term Loan		—		—		—		44,375		(316)		44,059
Debt, net of current portion		—		—		—		44,375		(316)		44,059

Convertible senior notes, non-current		345,000		(9,780)		335,220		—		—		—
Total debt	$	345,000	$	(9,780)	$	335,220	$	46,875	$	(316)	$	46,559

Our interest expense related to the Notes is as follows:


	For the year ended December 31,
		2024		2023
Contractual interest expense	$	1,761	$	—
Amortization of issuance costs		1,505		—
Total interest expense, convertible senior Notes	$	3,266	$	—

Principal debt maturities under the Credit Agreement and Notes for the next five years and thereafter are as follows as of December 31, 2024:


Year Ending December 31,
2025	$	—
2026		—
2027		—
2028		—
2029 and thereafter		345,000
Total debt, net of financing costs	$	345,000

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(3)
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-Topic 470
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-Name Accounting Standards Codification
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-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

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+ Details

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2024

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

11.STOCKHOLDERS’ EQUITY

Common Stock

During 2024, the Company issued 2,455 shares of Class A common stock (“Class A”) related to the exercise of options, net of 267 shares returned to the Company in lieu of payment of the exercise price and taxes due on these exercises. The Company issued 846 shares of Class A in 2024 in connection with the vesting of RSUs, net of 499 shares returned to the Company in lieu of payment of taxes due on the vesting of these awards. The Company issued 84 shares of Class A in 2024 in connection with the vesting of RSAs, net of 7 shares returned to the Company in lieu of payment of taxes due on the vesting of these awards. The Company also issued 116 shares in connection with the ESPP Plan in 2024. During 2024, stockholders exchanged 6,180 shares of Class B common stock (“Class B”) for an equivalent number of shares of Class A.

During 2023, the Company issued 2,468 shares of Class A related to the exercise of options, net of 314 shares returned to the Company in lieu of payment of the exercise price and taxes due on these exercises. The Company issued 511 shares of Class A in 2023 in connection with the vesting of RSUs, net of 285 shares returned to the Company in lieu of payment of taxes due on the vesting of these awards. The Company issued 198 shares of Class A in 2023 in connection with the vesting of RSAs, net of 7 shares returned to the Company in lieu of payment of taxes due on the vesting of these awards. The Company also issued 152 shares in connection with the ESPP Plan in 2023. During 2023, stockholders exchanged 7,646 shares of Class B for an equivalent number of shares of Class A.

During 2022, the Company issued 800 shares of Class A related to the exercise of options, net of 91 shares returned to the Company in lieu of payment of the exercise price and taxes due on these exercises. The Company issued 48 shares of Class A in 2022 in connection with the vesting of RSUs, net of 20 shares returned to the Company in lieu of payment of taxes due on the vesting of these awards. The Company issued 173 shares of Class A in 2022 in connection with the vesting of RSAs, net of 15 shares returned to the Company in lieu of payment of taxes due on the vesting of these awards. The Company also issued 207 shares in connection with the ESPP Plan in 2022. During 2022, stockholders exchanged 6,500 shares of Class B for an equivalent number of shares of Class A.

Tax Sharing Agreement Payments

In connection with revocation of the Company’s S-Corporation election effective July 27, 2020, the Company entered into an agreement with the S-Corporation stockholders pursuant to which the Company indemnified them for unpaid income tax liabilities and may be required to make future payments in material amounts to them attributable to incremental income taxes resulting from an adjustment to S-Corporation related taxable income that arises after the effective date of the S Election revocation (the “Tax Sharing Agreement”). All obligations of the Company under the Tax Sharing Agreement are satisfied by adjustments of additional paid in capital.

No payments were required under the Tax Sharing Agreement in 2024 or 2023. On March 15, 2022, the Company distributed $536 to the former S-Corporation shareholders under the Tax Sharing Agreement to settle the Company’s obligation for income taxes related to the allocation of taxable income to the S-Corporation short tax period ended July 26, 2020.

- Definition

The entire disclosure for equity.

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+ Details

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Financial assets and liabilities measured at fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Aug. 30, 2024	Dec. 31, 2023	Jan. 25, 2021
Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Foreign Currency Forward Contracts			$ 849
Significant other observable inputs (Level 2) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Foreign Currency Forward Contracts			849
Money Market Funds \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure	$ 276,374		53,049
Money Market Funds \| Prices in active markets for identical assets (Level 1) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure	276,374		53,049
Commercial Paper \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure	4,920		7,168
Commercial Paper \| Significant other observable inputs (Level 2) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure	4,920		7,168
Corporate Bonds \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure	250
Corporate Bonds \| Significant other observable inputs (Level 2) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure	250
U.S. Treasury Securities \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure	5,983		3,621
U.S. Treasury Securities \| Significant other observable inputs (Level 2) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure	5,983		3,621
Tellutax
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration	0		4,900	$ 2,200
Tellutax \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration			4,900
Tellutax \| Significant unobservable inputs (Level 3) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration			$ 4,900
Ecosio
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration		$ 105,000
Ecosio \| Cash Earn-outs
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration	74,400	71,000
Ecosio \| Cash Earn-outs \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration	74,400
Ecosio \| Cash Earn-outs \| Significant unobservable inputs (Level 3) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration	74,400
Ecosio \| Stock Earn-outs
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration	48,100	$ 34,000
Ecosio \| Stock Earn-outs \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration	48,100
Ecosio \| Stock Earn-outs \| Significant unobservable inputs (Level 3) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration	$ 48,100

INVESTMENTS - Gross Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Debt securities, unrealized loss position, accumulated loss
Fair value, less than 12 months maturity		$ 4,472
Fair value, 12 months or longer maturity	$ 600	2,043
Fair value, total	600	6,515
Debt securities, unrealized loss position, accumulated loss less than 12 months		(1)
Debt securities, unrealized loss position, accumulated loss 12 months or more	(1)	(7)
Debt securities, unrealized loss position, accumulated loss	$ (1)	$ (8)
Number of securities \| security	42	41
Number of securities immaterial \| security	2	24
Allowance For Credit Losses	$ 0	$ 0
Commercial Paper
Debt securities, unrealized loss position, accumulated loss
Fair value, less than 12 months maturity		4,472
Fair value, total		4,472
Debt securities, unrealized loss position, accumulated loss less than 12 months		(1)
Debt securities, unrealized loss position, accumulated loss		(1)
U.S. Treasury Securities
Debt securities, unrealized loss position, accumulated loss
Fair value, 12 months or longer maturity	600	2,043
Fair value, total	600	2,043
Debt securities, unrealized loss position, accumulated loss 12 months or more	(1)	(7)
Debt securities, unrealized loss position, accumulated loss	$ (1)	$ (7)

INCOME TAXES - Geography (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Geography (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
INCOME TAXES
U.S.	$ 9,174	$ (3,126)	$ 5,827
Foreign	(7,265)	(18,548)	(15,957)
Income (loss) before income taxes	$ 1,909	$ (21,674)	$ (10,130)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
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-Section 50
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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+ Details

INVESTMENTS - Securities pledged (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
INVESTMENTS
Debt securities	$ 0	$ 2,336	$ 0
Debt securities realized (loss)		(4)
Securities	0	0	0
Equity securities net gain (loss)	0	0	0
Unrealized gain (loss)	$ 0	$ 0	$ 0

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Options under 2020 Plan Price Range (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2024 $ / shares shares
Options outstanding, vested and exercisable:
Options outstanding	2,970
Options vested and exercisable	2,504
$0.15 to $0.71
Options outstanding, vested and exercisable:
Exercise prices, lower range \| $ / shares	$ 0.15
Exercise prices, upper range \| $ / shares	$ 0.71
Options outstanding	347
Options vested and exercisable	347
$2.50
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 2.5
Options outstanding	598
Options outstanding, life	1 year 7 months 6 days
Options vested and exercisable	598
Options vested and exercisable, life	1 year 7 months 6 days
$3.17
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 3.17
Options outstanding	113
Options outstanding, life	3 years 1 month 6 days
Options vested and exercisable	113
Options vested and exercisable, life	3 years 1 month 6 days
$3.73
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 3.73
Options outstanding	908
Options outstanding, life	4 years 10 months 24 days
Options vested and exercisable	908
Options vested and exercisable, life	4 years 10 months 24 days
$4.70
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 4.7
Options outstanding	466
Options outstanding, life	5 years 1 month 6 days
Options vested and exercisable	125
Options vested and exercisable, life	5 years 1 month 6 days
$18.47
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 18.47
Options outstanding	190
Options outstanding, life	6 years 10 months 24 days
Options vested and exercisable	136
Options vested and exercisable, life	6 years 10 months 24 days
$18.96
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 18.96
Options outstanding	80
Options outstanding, life	6 years 7 months 6 days
Options vested and exercisable	80
Options vested and exercisable, life	6 years 7 months 6 days
$19.00
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 19
Options outstanding	46
Options outstanding, life	6 years 8 months 12 days
Options vested and exercisable	30
Options vested and exercisable, life	6 years 8 months 12 days
$32.16
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 32.16
Options outstanding	222
Options outstanding, life	6 years 2 months 12 days
Options vested and exercisable	167
Options vested and exercisable, life	6 years 2 months 12 days

RELATED PARTIES

12 Months Ended

Dec. 31, 2024

RELATED PARTIES

RELATED PARTIES

14.RELATED PARTIES

In connection with the termination of the Company’s S-corporation status and our establishment of a new capital structure, which both occurred in July 2020, the Company entered into the Third Amended and Restated Stockholders' Agreement (the “Stockholders’ Agreement”) with the Class B shareholders. The Stockholders’ Agreement entitles these individuals to require the Company to register shares held by them for sale (the “Selling Shareholder Registrations”). The Stockholders’ Agreement requires the Company to pay the expenses relating to Selling Shareholder Registrations and to indemnify the parties participating in these offerings against liabilities that may arise from the offering process. No offering costs related to the sale of shares associated with the Selling Shareholder Registration were incurred during the years ended December 31, 2024 or 2023. For the year ended December 31, 2022, the Company incurred $688 in offering costs related to the sale of shares associated with the Selling Shareholder Registration.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

CAPITALIZED SOFTWARE

12 Months Ended

Dec. 31, 2024

CAPITALIZED SOFTWARE

CAPITALIZED SOFTWARE

7.CAPITALIZED SOFTWARE

Capitalized software includes acquired software and direct labor and related expenses for software developed for sale for new products and enhancements to existing products.

The major components of capitalized software are as follows:


	As of December 31,
	2024		2023
Capitalized software	$	140,562	$	115,152
Less accumulated amortization		(105,175)		(81,410)
Capitalized software, net of accumulated depreciation		35,387		33,742
In-process capitalized software		963		5,029
Capitalized software, net	$	36,350	$	38,771

Software development costs capitalized for the years ended December 31, 2024, 2023, and 2022, excluding acquisitions, were $21,344, $18,972, and $14,888, respectively. Capitalized software amortization expense, including amortization of acquired technology, for the years ended December 31, 2024, 2023, and 2022 was $23,765, $19,213, and $17,018, respectively, and is included in cost of revenues, software subscriptions in the consolidated statements of comprehensive loss.

In-process capitalized software at December 31, 2024 was not available for general release to customers as of the balance sheet date and therefore not included in the table below. Amortization expense of capitalized software available for general release to customers as of December 31, 2024 is as follows for all future years:


Year Ending December 31,
2025	$	19,159
2026		12,350
2027		3,877
2028		—
2029		—
Total	$	35,387

PROPERTY AND EQUIPMENT - Amortization expense (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Internal systems and tools
Software
2025	$ 17,779
2026	12,607
2027	4,113
2028	207
Total	34,706
Cloud-based customer solutions
Software
2025	33,764
2026	24,864
2027	13,699
2028	8,570
2029	22,854
Total	$ 103,751

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Advertising (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Payment terms (in days)	30-60 days
Reimbursable costs	$ 431	$ 17	$ 133
Advertising expense	$ 26,333	$ 26,000	$ 26,529

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Property and equipment
Property and equipment	$ 381,672	$ 263,648
Less accumulated depreciation and amortization	(204,113)	(162,914)
Property and equipment, net	177,559	100,734
Leasehold improvements
Property and equipment
Property and equipment	20,096	20,662
Equipment
Property and equipment
Property and equipment	14,386	22,012
Computer software purchased
Property and equipment
Property and equipment	1,344	2,690
Internal-use software
Property and equipment
Property and equipment, net	167,373	88,969
Cloud-based customer solutions
Property and equipment
Property and equipment	237,232	142,302
Internal systems and tools
Property and equipment
Property and equipment	72,406	39,430
Furniture and fixtures
Property and equipment
Property and equipment	7,292	7,669
In-process internal-use software
Property and equipment
Property and equipment	$ 28,916	$ 28,883

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash paid for Interest	$ 3,287	$ 3,729	$ 2,221
Cash paid for income taxes, net of refunds	8,593	5,652	3,059
Cash paid included in the measurement of lease liabilities:
Operating cash flows from operating leases	3,679	4,019	4,240
Non-cash investing and financing activities:
Change in settlement value of deferred purchase commitment liability	423	4,020	990
Change in fair value of contingent consideration liabilities	14,925	1,549	2,300
Leased assets obtained in exchange for new finance lease liabilities	$ 48	$ 124	$ 1,069

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2024

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

6. PROPERTY AND EQUIPMENT

The major components of property and equipment are as follows:


	As of December 31,
	2024		2023
Leasehold improvements	$	20,096	$	20,662
Equipment		14,386		22,012
Computer software purchased		1,344		2,690
Internal-use software developed:
Cloud-based customer solutions		237,232		142,302
Internal systems and tools		72,406		39,430
Furniture and fixtures		7,292		7,669
In-process internal-use software		28,916		28,883
Property and equipment		381,672		263,648
Less accumulated depreciation and amortization		(204,113)		(162,914)
Property and equipment, net	$	177,559	$	100,734

Depreciation expense for property and equipment, excluding all internal-use software developed and finance leases, was $4,394, $5,847, and $6,445 for the years ended December 31, 2024, 2023, and 2022, respectively. Depreciation for property and equipment, excluding internal-use software developed for cloud-based customer solutions, is reflected in depreciation and amortization in the consolidated statements of comprehensive loss.

Finance lease amortization was $78, $610, and $1,082 for the years ended December 31, 2024, 2023, and 2022, respectively. Finance lease amortization is included in depreciation and amortization in the consolidated statements of comprehensive loss.

Assets under finance leases of $172, and $297, net of accumulated amortization of $97 and $190, at December 31, 2024 and 2023, respectively, are included in property and equipment in the consolidated balance sheets.

The major components of internal-use software developed are as follows:


	As of December 31,
	2024		2023
Internal-use software developed	$	309,638	$	181,732
Less accumulated depreciation		(171,181)		(121,646)
Internal-use software developed, net of accumulated depreciation		138,457		60,086
In-process internal-use software		28,916		28,883
Internal-use software developed, net	$	167,373	$	88,969

Amounts included in property and equipment additions related to capitalized internal-use software on the consolidated statements of cash flows are as follows:


		For the year ended December 31,
	2024		2023		2022
Cloud-based customer solutions	$	45,374	$	29,496	$	28,918
Internal systems and tools		19,024		17,751		13,356
Total	$	64,398	$	47,247	$	42,274

In-process internal-use software developed is not depreciated until it is available for its intended use. Depreciation expense for internal-use software developed for cloud-based customer solutions for the years ended December 31, 2024, 2023, and 2022, was $35,312, $34,592, and $27,682, respectively, and is included in cost of revenues, software subscriptions in the consolidated statements of comprehensive loss. Developed technology for cloud-based customer solutions with an acquisition date fair value of $63,800 was recorded in connection with the ecosio acquisition and is reflected in property and equipment, net, in the consolidated balance sheets at December 31, 2024. Depreciation expense related to this developed technology was $2,962 for the year ended December 31, 2024, and is reflected in cost of revenues - software subscriptions in the consolidated statement of comprehensive loss.

Depreciation expense for internal-use software developed for internal systems and tools for the years ended December 31, 2024, 2023, and 2022 was $16,481, $8,745, and $4,913, respectively, and is included in depreciation and amortization in the consolidated statements of comprehensive loss.

Amortization expense of internal-use software developed, excluding in-process internal-use software not yet available for its intended use at December 31, 2024 is as follows for all future years:


Year Ending December 31,	Internal Systems and Tools		Cloud-Based Customer Solutions
2025	$	17,779		33,764
2026		12,607		24,864
2027		4,113		13,699
2028		207		8,570
2029		—		22,854
Total	$	34,706	$	103,751

ACQUISITIONS - Intangible assets acquired (Details) - USD ($) $ in Thousands		12 Months Ended
	Aug. 30, 2024	Dec. 31, 2024
Developed technology
ACQUISITIONS
Fair Value		$ 63,800
Ecosio \| Developed technology \| Property and Equipment, net
ACQUISITIONS
Fair Value	$ 63,800
Estimated Useful Life	7 years
Discount Rate	15.50%
Ecosio \| Trade Name \| Goodwill and other intangible assets
ACQUISITIONS
Fair Value	$ 1,450
Estimated Useful Life	3 years
Discount Rate	15.50%
Ecosio \| Customer relationships \| Goodwill and other intangible assets
ACQUISITIONS
Fair Value	$ 4,500
Estimated Useful Life	3 years
Discount Rate	15.50%

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - 2020 Plan (Details) - Employee Stock Option shares in Thousands	12 Months Ended
	Dec. 31, 2024 shares
Compensation plans:
Shares authorized	16,500
Available for issuance	20,663
Maximum issuance (as a percentage of outstanding)	4.00%
Maximum issuance (in shares)	3,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (52,729)	$ (13,093)	$ (12,304)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Section 50
-Paragraph 6
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Reference 37: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

RELATED PARTIES (Details) - USD ($) $ in Thousands	12 Months Ended
RELATED PARTIES (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
RELATED PARTIES
Offering costs related to sale of shares	$ 0	$ 0	$ 688

PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Property and equipment
Finance lease amortization	$ 78	$ 610	$ 1,082
Finance lease assets	$ 75	$ 107
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net	Property and equipment, net
Property and equipment, net	$ 177,559	$ 100,734
Developed technology
Property and equipment
Depreciation expense	2,962
Fair Value of other intangible assets	63,800
Excluding internal-use software and capital leases
Property and equipment
Depreciation expense	4,394	5,847	6,445
Assets under finance leases
Property and equipment
Accumulated amortization	97	190
Property and equipment, net	172	297
Cloud-based customer solutions
Property and equipment
Cost, Depreciation	35,312	34,592	27,682
Internal systems and tools
Property and equipment
Depreciation	$ 16,481	$ 8,745	$ 4,913

GOODWILL AND OTHER INTANGIBLE ASSETS - Future amortization (Details) - Other intangible assets - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Future amortization expense:
2025	$ 2,089
2026	1,865
2027	1,244
Total	$ 5,198	$ 2,396

INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
INVESTMENTS
Accrued interest receivable	$ 40	$ 20

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
John Schwab
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On December 16, 2024, John Schwab, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 60,000 shares of Class A common stock until December 18, 2026.
Name	John Schwab
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	Dec. 16, 2024
Rule 10b5-1 Arrangement Terminated	true
Termination Date	Dec. 18, 2026
Aggregate Available	60,000
Bryan Rowland
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On November 26, 2024, Bryan Rowland, Senior Vice President & General Counsel, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 47,621 shares of Class A common stock until September 30, 2025.
Name	Bryan Rowland
Title	Senior Vice President & General Counsel
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	Nov. 26, 2024
Rule 10b5-1 Arrangement Terminated	true
Termination Date	Sep. 30, 2025
Aggregate Available	47,621

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2024

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum payments for non-cancelable agreements with third-party providers


2025	$	14,352
2026		5,928
2027		4,067
2028		3,076
2029		—
	$	27,423

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2024

Compensation plans:

Schedule of ESPP valuation assumptions


	Offering Period Ending
	5/31/2025			11/30/2024			5/31/2024			11/30/2023			5/31/2023
Fair market value of common stock	$	54.64		$	33.26		$	27.82		$	21.76		$	17.21
Volatility		26.4	%		41.7	%		36.6	%		39.4	%		46.4	%
Expected term (years)		0.5			0.5			0.5			0.5			0.5
Expected dividend yield		-	%		-	%		-	%		-	%		-	%
Risk-free interest rate		4.4	%		5.4	%		5.3	%		5.4	%		4.7	%

Schedule of stock-based compensation cost related to incentive awards


	For the year ended December 31,
	2024		2023		2022
Stock-based compensation expense:
Stock options	$	6,768	$	6,349	$	7,081
RSUs		37,770		24,257		9,286
RSAs		1,617		2,496		2,768
PSUs		285		—		—
ESPP		985		817		594
Total stock-based compensation expense	$	47,425	$	33,919	$	19,729

Schedule of stock based compensation cost in consolidated statement of operations


	For the year ended December 31,
	2024		2023		2022
Stock-based compensation expense:
Cost of revenues, software subscriptions	$	4,349	$	2,834	$	2,090
Cost of revenues, services		2,768		1,846		1,433
Research and development		9,548		5,994		1,798
Selling and marketing		13,204		8,380		6,284
General and administrative		17,556		14,865		8,124
Total stock-based compensation expense	$	47,425	$	33,919	$	19,729

Employee Stock Option

Compensation plans:

Schedule of Option activity


				Weighted
			Weighted	Average
			Average	Remaining	Aggregate
			Exercise	Contractual	Intrinsic
2020 Plan Option Activity	Units		Price	Life (Years)	Value
Outstanding at January 1, 2024	5,692	$	5.32	4.7	$	124,327
Exercised	(2,722)	$	3.56
2020 Plan options outstanding at December 31, 2024	2,970	$	6.93	4.4	$	137,857
2020 Plan options exercisable at December 31, 2024	2,504	$	6.35	4.2	$	117,670

Schedule of outstanding, vested and exercisable



	Options Outstanding		Options Vested and Exercisable
		Weighted		Weighted
		Average		Average
Exercise Prices	Units	Life (Years)	Units	Life (Years)
$0.15 to $0.71	347	*	347	*
$2.50	598	1.6	598	1.6
$3.17	113	3.1	113	3.1
$3.73	908	4.9	908	4.9
$4.70	466	5.1	125	5.1
$18.47	190	6.9	136	6.9
$18.96	80	6.6	80	6.6
$19.00	46	6.7	30	6.7
$32.16	222	6.2	167	6.2
	2,970		2,504
*These options have indefinite contractual lives.

Restricted Stock Units

Compensation plans:

Schedule of restricted activity



		Weighted
		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	4,171	$	16.11
Granted	1,833		26.09
Vested	(1,345)		16.70
Forfeited	(125)		16.33
Outstanding at December 31, 2024	4,534	$	19.96

Restricted Stock Awards

Compensation plans:

Schedule of restricted activity



		Weighted
		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	91	$	21.50
Granted	34		35.06
Vested	(91)		21.50
Outstanding at December 31, 2024	34	$	35.06

PSUs

Compensation plans:

Schedule of restricted activity


		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	—	$	—
Granted	192		53.46
Outstanding at December 31, 2024	192	$	53.46

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 296,051	$ 68,175
Funds held for customers	30,015	20,976
Accounts receivable, net of allowance of $16,838 and $16,272, respectively	164,432	141,752
Prepaid expenses and other current assets	36,678	26,173
Investment securities available-for-sale, at fair value (amortized cost of $9,147 and $9,550, respectively)	9,157	9,545
Total current assets	536,333	266,621
Property and equipment, net of accumulated depreciation	177,559	100,734
Capitalized software, net of accumulated amortization	36,350	38,771
Goodwill and other intangible assets	363,021	260,238
Deferred commissions	27,480	21,237
Deferred income tax assets	19	41,708
Operating lease right-of-use assets	11,956	14,605
Other assets	14,073	16,013
Total assets	1,166,791	759,927
Current liabilities:
Current portion of long-term debt		2,500
Accounts payable	36,215	23,596
Accrued expenses	35,169	44,735
Customer funds obligations	27,406	17,731
Accrued salaries and benefits	14,581	12,277
Accrued variable compensation	45,507	34,105
Deferred revenue, current	339,326	290,143
Current portion of operating lease liabilities	3,995	3,717
Current portion of finance lease liabilities	77	74
Purchase commitment and contingent consideration liabilities, current	35,100	11,901
Total current liabilities	537,376	440,779
Deferred revenue, net of current portion	4,840	2,577
Debt, net of current portion	335,220	44,059
Operating lease liabilities, net of current portion	12,585	16,567
Finance lease liabilities, net of current portion	10	51
Purchase commitment and contingent consideration liabilities, net of current portion	87,400	2,600
Deferred income tax liabilities	9,918
Deferred other liabilities	90	313
Total liabilities	987,439	506,946
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred shares, $0.001 par value, 30,000 shares authorized; no shares issued and outstanding
Additional paid in capital	278,389	275,155
Accumulated deficit	(53,315)	(586)
Accumulated other comprehensive loss	(45,879)	(21,742)
Total stockholders' equity	179,352	252,981
Total liabilities and stockholders' equity	1,166,791	759,927
Class A
Stockholders' equity:
Common stock	71	61
Class B
Stockholders' equity:
Common stock	$ 86	$ 93

REVENUE RECOGNITION - Accounts receivable, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
REVENUE RECOGNITION
Allowance for accounts receivable	$ 16,838	$ 16,272	$ 9,554	$ 9,151
Balance, beginning of period	141,752	102,885	76,929
Balance, end of period	164,432	141,752	102,885
Increase	$ 22,680	$ 38,867	$ 25,956

GOODWILL AND OTHER INTANGIBLE ASSETS - Changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
GOODWILL AND OTHER INTANGIBLE ASSETS
Balance, January 1	$ 257,842	$ 251,842
ecosio acquisition	119,668
Foreign currency translation adjustments	(19,687)	6,000
Balance, December 31, gross	357,823	257,842
Balance, December 31, net	$ 357,823	$ 257,842

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 49
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-49

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481372/852-10-55-10

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(15))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482598/350-20-45-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(10)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

+ Details

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Compensation plans:
Accrued salaries and benefits	$ 14,581	$ 12,277
ESPP
Compensation plans:
ESPP offering period	6 months
Accrued salaries and benefits	$ 496	$ 371

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Performance Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		12 Months Ended
	Dec. 17, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Compensation plans:
Compensation expense		$ 47,425	$ 33,919	$ 19,729
PSUs
Compensation plans:
Service requirement (in years)		3 years
Maximum percentage of base number of awards granted		100.00%
Unrecognized compensation cost		$ 9,974
Unrecognized compensation expense period		2 years 10 months 24 days
Units
Granted (in units)	192	192
Ending balance (in units)		192
Weighted Average Per Share
Granted (in dollars per share)		$ 53.46
Ending balance (in dollars per share)		$ 53.46
PSUs \| First Annual Target
Compensation plans:
Compensation expense		$ 285
PSUs \| Second Annual Target
Compensation plans:
Compensation expense		0
PSUs \| Third Annual Target
Compensation plans:
Compensation expense		$ 0
PSUs \| Maximum
Compensation plans:
Compensation expense	$ 10,259

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Earn out consideration (Details) - Ecosio $ / shares in Units, $ in Thousands	Aug. 30, 2024 USD ($) item	Dec. 31, 2024 USD ($)	Aug. 06, 2024 $ / shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Number of potential earnout payments \| item	3
Contingent consideration	$ 105,000
Opening share price \| $ / shares			$ 37.02
Cash Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum payout	94,355
Contingent consideration	71,000	$ 74,400
Stock Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum payout	35,000
Contingent consideration	34,000	48,100
Year 1 - December 1, 2024 - December 1, 2025 \| Cash Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum payout	19,600
Contingent consideration	16,700	17,900
Year 1 - December 1, 2024 - December 1, 2025 \| Stock Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum payout	12,000
Contingent consideration	12,200	17,200
Year 2 - December 1, 2025 - December 1, 2026 \| Cash Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum payout	30,625
Contingent consideration	23,200	24,400
Year 2 - December 1, 2025 - December 1, 2026 \| Stock Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum payout	12,000
Contingent consideration	11,400	16,300
Year 3 - December 1, 2026 - December 1, 2027 \| Cash Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum payout	44,130
Contingent consideration	31,100	32,100
Year 3 - December 1, 2026 - December 1, 2027 \| Stock Earn-outs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum payout	11,000
Contingent consideration	$ 10,400	$ 14,600
If actual software revenues exceed 100% of the target
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Maximum additional earnout payment, percentage	122.50%
If actual software revenues are below 85% of the target
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Earnout payment	$ 0

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

LEASES

12 Months Ended

Dec. 31, 2024

LEASES

LEASES

8.LEASES

The Company leases office space, IT equipment and office equipment. The Company’s leases have remaining terms of up to 4 years.

The following table sets forth the Company’s lease assets and liabilities and their balance sheet location as follows:


		As of December 31,
	Balance Sheet Location	2024		2023
Lease assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	11,956	$	14,605
Finance lease assets	Property and equipment, net (Note 6)		75		107
Total lease assets		$	12,031	$	14,712

Lease liabilities:
Current:
Operating lease liabilities	Current portion of operating lease liabilities	$	3,995	$	3,717
Finance lease liabilities	Current portion of finance lease liabilities		77		74
Total current lease liabilities		$	4,072	$	3,791
Non-current:
Operating lease liabilities	Operating lease liabilities, net of current portion	$	12,585	$	16,567
Finance lease liabilities	Finance lease liabilities, net of current portion		10		51
Total non-current lease liabilities			12,595		16,618
Total lease liabilities		$	16,667	$	20,409

The major components of lease cost are as follows:


	For the year ended December 31,
	2024		2023		2022

Operating lease cost	$	3,679	$	4,019	$	3,714

Finance lease cost:
Amortization of lease assets		79		788		1,275
Interest on lease liabilities		6		8		18
Total lease cost	$	3,764	$	4,815	$	5,007

The weighted-average term and discount rate for leases are as follows:


	As of December 31,
	2024		2023
Weighted-average remaining lease term (years):
Operating leases	3.7		4.7
Finance leases	1.1		2.1

Weighted-average discount rate:
Operating leases	2.4	%	2.3	%
Finance leases	6.1	%	5.6	%

Lease liability maturities for the next five years and thereafter are as follows as of December 31, 2024:


	Operating Leases		Finance Leases
2025	$	4,340	$	78
2026		4,766		11
2027		4,738		—
2028		3,482		—
2029		—		—
Thereafter		—		—
Total lease payments		17,326		89
Less: Imputed interest		(746)		(2)
Present value of lease liabilities	$	16,580	$	87

LEASES - Future Maturity of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Operating Leases
2025	$ 4,340
2026	4,766
2027	4,738
2028	3,482
Total lease payments	17,326
Less: Imputed Interest	(746)
Present value of lease liabilities	16,580
Finance Leases
2024	78
2025	11
Total lease payments	89
Less: Imputed Interest	(2)
Present value of lease liabilities	$ 87

CAPITALIZED SOFTWARE (Details) - USD ($) $ in Thousands	12 Months Ended
CAPITALIZED SOFTWARE (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Capitalized software, movement
Capitalized software, net	$ 36,350	$ 38,771
Capitalized software amortization expense	23,765	19,213	$ 17,018
Software
Capitalized software, movement
Capitalized software, gross	140,562	115,152
Less accumulated amortization	(105,175)	(81,410)
Capitalized software, net	35,387	33,742
Capitalized development costs	21,344	18,972	$ 14,888
In-process internal-use software
Capitalized software, movement
Capitalized software, gross	$ 963	$ 5,029

INVESTMENTS

12 Months Ended

Dec. 31, 2024

INVESTMENTS

INVESTMENTS

4. INVESTMENTS

The table below presents the amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value aggregated by major security type as of December 31, 2024 and 2023. Accrued interest receivables of $40 and $20 as of December 31, 2024 and 2023, respectively, are not included in the tables.


	As of December 31, 2024
Investment securities available-for-sale:	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Allowance For Credit Losses		Fair Value
Commercial Paper	$	4,920	$	—	$	—	$	—	$	4,920
Corporate Bonds		250		—		—		—		250
U.S. Treasury Securities		5,970		14		(1)		—		5,983
Total investment securities available-for-sale	$	11,140	$	14	$	(1)	$	—	$	11,153


	As of December 31, 2023
Investment securities available for sale:	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Allowance For Credit Losses		Fair Value
Commercial paper	$	7,169	$	—	$	(1)	$	—	$	7,168
U.S. Treasury securities		3,628		—		(7)		—		3,621
Total investment securities available for sale	$	10,797	$	—	$	(8)	$	—	$	10,789

Investment Securities in a Gross Unrealized Loss Position

The table below provides the gross unrealized losses and fair value of securities available-for-sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2024 and 2023. The amounts include securities available-for-sale without an allowance for credit losses. As of December 31, 2024, the Company’s available-for-sale investment securities consisted of 42 securities, 2 of which are in an immaterial unrealized loss position. As of December 31, 2023, the Company’s available-for-sale investment securities consisted of 41 securities, 24 of which are in an immaterial unrealized loss position. As a result, there is no allowance for credit losses recorded for available-for-sale debt securities as of December 31, 2024 or 2023.


	As of December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
Investment securities available-for-sale without an allowance for credit losses:	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
U.S. Treasury Securities	$	—	$	—	$	600	$	(1)	$	600	$	(1)
Total investment securities available-for-sale	$	—	$	—	$	600	$	(1)	$	600	$	(1)




	As of December 31, 2023
	Less than 12 Months				12 Months or Longer				Total
Investment securities available for sale without an allowance for credit losses:	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Commercial paper	$	4,472	$	(1)	$	—	$	—	$	4,472	$	(1)
U.S. Treasury securities		—		—		2,043		(7)		2,043		(7)
Total investment securities available for sale	$	4,472	$	(1)	$	2,043	$	(7)	$	6,515	$	(8)

Maturities of Investment Securities

The table below summarizes, as of December 31, 2024, the fair value of investment securities by major security type and contractual maturity as well as the total fair value, and amortized cost of investment securities by contractual maturity. Because borrowers may have the right to call or prepay certain obligations, the expected maturities of securities are likely to differ from the scheduled contractual maturities presented below.


	As of December 31, 2024
	Due in 1 Year or Less		Due > 1 Year through 5 Years		Due > 5 Years through 10 Years		Due > 10 Years		Total
Fair value of investment securities available-for-sale:
Commercial Paper	$	4,920	$	—	$	—	$	—	$	4,920
Corporate Bonds		—		250		—		—		250
U.S. Treasury Securities		2,678		3,305		—		—		5,983
Total investment securities available-for-sale	$	7,598	$	3,555	$	—	$	—	$	11,153
Amortized cost of investment securities available-for-sale	$	7,595	$	3,545	$	—	$	—	$	11,140

The Company’s debt securities portfolio had unaccreted discounts of $59 and $114 and had no remaining unamortized premiums as of December 2024 and 2023, respectively.

Net Securities Gains or Losses and Securities Pledged

The Company had no sales of debt securities during 2024 or 2022. During 2023, the Company had sales of debt securities totaling $2,336, resulting in a realized loss of $4. No securities were pledged during the years ended December 31, 2024, 2023 or 2022.

No net gains or losses and no unrealized gains or losses were recognized on equity securities held during the years ended December 31, 2024, 2023 or 2022.

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Purchase Obligation, Fiscal Year Maturity [Abstract]
2025	$ 14,352
2026	5,928
2027	4,067
2028	3,076
Total	$ 27,423

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

15.COMMITMENTS AND CONTINGENCIES

In January 2022, the Company filed a complaint against a competitor alleging claims of unfair competition, intentional interference with contractual relations, and trade secret misappropriation. The outcome of the case is subject to a number of uncertainties; therefore, the Company has not recognized any potential impact to the consolidated financial statements.

The Company may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. The Company is not aware of any such legal proceedings or claims that management believes will have a material adverse effect on its business, financial condition, or operating results.

Purchase Obligations

In the ordinary course of business, the Company enters into non-cancelable agreements with third-party providers, primarily for subscriptions and the use of cloud services. Future minimum payments as of December 31, 2024 are summarized in the table below:


2025	$	14,352
2026		5,928
2027		4,067
2028		3,076
2029		—
	$	27,423

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of assets and liabilities measured at fair value on a recurring basis


	Fair Value Measurements Using
As of December 31, 2024	Fair Value		Prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Money Market Funds	$	276,374	$	276,374	$	—	$	—
Commercial Paper		4,920		—		4,920		—
Corporate Bonds		250		—		250		—
U.S. Treasury Securities		5,983		—		5,983		—
ecosio Cash Earn-outs		74,400		—		—		74,400
ecosio Stock Earn-outs		48,100		—		—		48,100
	Fair Value Measurements Using
As of December 31, 2023	Fair Value		Prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Money Market Funds	$	53,049	$	53,049	$	—	$	—
Commercial Paper		7,168		—		7,168		—
U.S. Treasury Securities		3,621		—		3,621		—
Tellutax Contingent Consideration		4,900		—		—		4,900
Foreign Currency Forward Contracts		849		—		849		—

Schedule of additional information on Cash and Stock Earn-outs


	Maximum		Fair Value		Fair Value
Cash Earn-outs/ Period	Payout		December 31, 2024		at Acquisition Date
Year 1 - December 1, 2024 - December 1, 2025	$	19,600	$	17,900	$	16,700
Year 2 - December 1, 2025 - December 1, 2026		30,625		24,400		23,200
Year 3 - December 1, 2026 - December 1, 2027		44,130		32,100		31,100
Total Cash Earn-outs	$	94,355	$	74,400	$	71,000
	Maximum		Fair Value		Fair Value
Stock Earn-outs/ Period	Payout ⁽¹⁾		December 31, 2024		at Acquisition Date
Year 1 - December 1, 2024 - December 1, 2025	$	12,000	$	17,200	$	12,200
Year 2 - December 1, 2025 - December 1, 2026		12,000		16,300		11,400
Year 3 - December 1, 2026 - December 1, 2027		11,000		14,600		10,400
Total Stock Earn-outs	$	35,000	$	48,100	$	34,000
⁽¹⁾ Maximum payout based on Vertex's August 6, 2024 opening share price of $37.02, as referenced in the purchase agreement.

Changes in fair value of contingent consideration


	Tellutax		ecosio		ecosio
	Contingent		Contingent Consideration		Contingent Consideration
	Consideration		Cash Earn-outs		Stock Earn-outs
Balance, January 1, 2022	$	2,500	$	—	$	—
Fair value adjustments		2,300		—		—
Balance, December 31, 2022		4,800		—		—
Fair value adjustments		1,549		—		—
Payments		(1,449)		—		—
Balance, December 31, 2023		4,900		—		—
ecosio acquisition (Note 3)		—		71,000		34,000
Fair value adjustments		(2,575)		3,400		14,100
Payments		(2,325)		—		—
Balance, December 31, 2024	$	—	$	74,400	$	48,100

Ecosio

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Summary of fair value of contingent consideration and unobservable inputs used for the Monte Carlo Simulation valuation


	December 31, 2024
Liabilities	Fair Value		Valuation Technique	Unobservable Inputs
ecosio Contingent Consideration - Cash Earn-outs	$	74,400	Monte Carlo Simulation	Revenue volatility	21.0	%
				Revenue discount rate	7.7	%
				Term (in years)	3.2

ecosio Contingent Consideration - Stock Earn-outs	$	48,100	Monte Carlo Simulation	Revenue volatility	21.0	%
				Revenue discount rate	7.7	%
				Term (in years)	3.2

	Acquisition Date
Liabilities	Fair Value		Valuation Technique	Unobservable Inputs
ecosio Contingent Consideration - Cash Earn-outs	$	71,000	Monte Carlo Simulation	Revenue volatility	21.0	%
				Revenue discount rate	7.6	%
				Term (in years)	3.5

ecosio Contingent Consideration - Stock Earn-outs	$	34,000	Monte Carlo Simulation	Revenue volatility	21.0	%
				Revenue discount rate	7.6	%
				Term (in years)	3.5

Tellutax

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Summary of fair value of contingent consideration and unobservable inputs used for the Monte Carlo Simulation valuation


	December 31, 2023
Liability	Fair Value		Valuation Technique	Unobservable Inputs
Tellutax Contingent Consideration	$	4,900	Monte Carlo Simulation	Revenue volatility	60.0	%
				Revenue discount rate	20.8	%
				Term (in years)	1.3

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Class A
Numerator:
Allocation of net income (loss), basic	$ (21,974)	$ (4,721)	$ (3,771)
Total net income (loss) used in per diluted computation	$ (21,974)	$ (4,721)	$ (3,771)
Denominator:
Total shares used in per share computation, basic (in shares)	64,724	54,753	45,864
Total shares used in per share computation, diluted (in shares)	64,724	54,753	45,864
Basic net income (loss) per share: (in dollars per share)	$ (0.34)	$ (0.09)	$ (0.08)
Dilutive net income (loss) per share: (in dollars per share)	$ (0.34)	$ (0.09)	$ (0.08)
Class B
Numerator:
Allocation of net income (loss), basic	$ (30,755)	$ (8,372)	$ (8,533)
Total net income (loss) used in per diluted computation	$ (30,755)	$ (8,372)	$ (8,533)
Denominator:
Total shares used in per share computation, basic (in shares)	90,586	97,106	103,781
Total shares used in per share computation, diluted (in shares)	90,586	97,106	103,781
Basic net income (loss) per share: (in dollars per share)	$ (0.34)	$ (0.09)	$ (0.08)
Dilutive net income (loss) per share: (in dollars per share)	$ (0.34)	$ (0.09)	$ (0.08)

REVENUE RECOGNITION - Contract cost balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Deferred commissions:
Beginning balance	$ 21,237	$ 15,463	$ 12,555
Additions	23,736	16,552	13,913
Amortization	(17,493)	(10,778)	(11,005)
Ending balance	27,480	21,237	15,463
Impairment loss	$ 0	$ 0	$ 0
Minimum
Deferred commissions:
Contract costs, amortization period	1 year
Maximum
Deferred commissions:
Contract costs, amortization period	3 years

INCOME TAXES - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income taxes:
Income tax benefit from translation adjustments and revaluations	$ 37	$ 27
Pretax net income (loss)	1,909	(21,674)	$ (10,130)
Taxes:
U.S. federal income tax at statutory rate	401	(4,552)	(2,128)
State income taxes	900	289	441
Stock-based compensation expense	(20,559)	(6,236)	1,787
Impact of foreign operations	833	1,463	1,352
Transaction costs	431		176
U.S. taxation of foreign earnings	2	(245)	(179)
Nondeductible compensation	3,948	2,822	485
Tax credits	(4,920)	(5,818)	(341)
Change in valuation allowance	67,135	3,386	427
Purchase commitment and contingent consideration liabilities	6,186
Changes in prior year unrecognized tax benefits	98	451
Other permanent items, net	183	(141)	154
Income tax expense (benefit)	$ 54,638	$ (8,581)	$ 2,174
Tax Rate (Percentage)
U.S. federal income tax at statutory rate	21.00%	21.00%	21.00%
State income taxes	47.10%	(1.30%)	(4.40%)
Stock-based compensation expense	(1077.00%)	28.80%	(17.60%)
Impact of foreign operations	43.60%	(6.80%)	(13.30%)
Transaction costs	22.60%	0.00%	(1.70%)
U.S. taxation of foreign earnings	0.10%	1.10%	1.80%
Nondeductible compensation	206.80%	(13.00%)	(4.80%)
Tax credits	(257.70%)	26.80%	3.40%
Change in valuation allowance	3516.80%	(15.60%)	(4.20%)
Purchase commitment and contingent consideration liabilities	324.00%	0.00%	0.00%
Changes in prior year unrecognized tax benefits	5.10%	(2.10%)	0.00%
Other permanent items, net	9.70%	0.70%	(1.70%)
Taxes and effective tax rate	2862.10%	39.60%	(21.50%)
Foreign taxing jurisdiction
Tax Rate (Percentage)
Impact of foreign operations	12.50%	12.50%	12.50%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Other operating expense (income), net
Foreign currency
Net foreign transaction (losses)	$ (1,067)	$ (109)	$ (38)

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Restricted Stock Awards (Details) - Restricted Stock Awards $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) $ / shares shares
Units
Beginning balance (in units) \| shares	91
Granted (in units) \| shares	34
Vested (in units) \| shares	(91)
Ending balance (in units) \| shares	34
Weighted Average Per Share
Beginning balance (in dollars per share) \| $ / shares	$ 21.5
Granted (in dollars per share) \| $ / shares	35.06
Vested (in dollars per share) \| $ / shares	21.5
Ending balance (in dollars per share) \| $ / shares	$ 35.06
Unrecognized compensation cost \| $	$ 532
Unrecognized compensation expense period	6 months
Minimum
Compensation plans:
Service requirement (in years)	1 year
Maximum
Compensation plans:
Service requirement (in years)	4 years

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Options under 2020 Plan (Details) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Units
Beginning, balance	5,692
Granted	0	0	0
Exercised	(2,722)
Ending balance	2,970	5,692
Exercisable	2,504
Weighted Average Per Share
Beginning balance	$ 5.32
Exercised	3.56
Ending Balance	6.93	$ 5.32
Exercisable	$ 6.35
Remaining contractual life, outstanding	4 years 4 months 24 days	4 years 8 months 12 days
Remaining contractual life, exercisable	4 years 2 months 12 days
Intrinsic value, outstanding	$ 137,857	$ 124,327
Intrinsic value, exercisable	117,670
Unrecognized compensation expense	$ 595
Unrecognized compensation expense period	8 months 12 days
Minimum
Weighted Average Per Share
Vesting period	1 year
Maximum
Weighted Average Per Share
Vesting period	4 years

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - Stock based compensation, comprehensive loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Allocation of costs
Compensation expense	$ 47,425	$ 33,919	$ 19,729
Recognized tax benefit related to the stock-based compensation expense	33,739	16,541	3,324
Tax benefit from stock options	25,306	13,079	2,710
Software subscriptions
Allocation of costs
Compensation expense	4,349	2,834	2,090
Services
Allocation of costs
Compensation expense	2,768	1,846	1,433
Research and development
Allocation of costs
Compensation expense	9,548	5,994	1,798
Selling and marketing
Allocation of costs
Compensation expense	13,204	8,380	6,284
General and administrative
Allocation of costs
Compensation expense	$ 17,556	$ 14,865	$ 8,124

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2024

ACQUISITIONS

Schedule of purchase price and assets acquired and liabilities assumed


	August 30, 2024
Upfront cash consideration	$	64,829
Cash and Stock Earn-outs, at fair value		105,000
Total	$	169,829


	August 30, 2024
Cash and cash equivalents	$	788
Accounts receivable		2,068
Prepaid expenses and other current assets		475
Property and equipment⁽¹⁾		63,984
Other assets		263
Goodwill ⁽²⁾		119,668
Other intangibles		5,950
Accounts payable		(1,118)
Operating lease liabilities		(229)
Third-party debt		(3,904)
Accrued expenses		(5,222)
Deferred revenue		(752)
Deferred income tax		(12,142)
Total	$	169,829
⁽¹⁾ Includes $63,800 of acquired developed technology.
⁽²⁾ Goodwill associated with the acquisition is not deductible for tax purposes.

Schedule of acquired intangible assets

August 30, 2024

ecosio Identifiable Intangibles

Balance Sheet Location

Fair Value

Valuation Methodology

Estimated Useful Life

Discount Rate

Developed technology

Property and equipment, net

63,800

Multi-period excess earnings method - income approach

7 years

15.5

Trade name

Goodwill and other intangible assets

1,450

Relief from royalty method - income approach

3 years

15.5

Customer relationships

Goodwill and other intangible assets

4,500

With and without method - income approach

3 years

15.5

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Non-recurring Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jun. 05, 2024	Jan. 07, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Interest expense	$ 423	$ 4,020	$ 990
Fair value of convertible senior notes	539,494	0
Systax
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Upfront cash consideration	$ 9,622	$ 4,975		$ 788
Total equity interests	100.00%	80.00%		65.00%
Purchase commitment liability						$ 12,592
Equity interest acquired	20.00%	15.00%		5.00%	20.00%	60.00%
Purchase Commitment Liability		$ 9,601

DEBT - Maturities (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Debt Maturities
2029 and thereafter	$ 345,000
Total debt, net of financing costs	$ 345,000

REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2024

REVENUE RECOGNITION

REVENUE RECOGNITION

2.REVENUE RECOGNITION

Disaggregation of revenue

The table reflects revenue by major source for the following periods:


	For the year ended December 31,
		2024	2023		2022
Software subscriptions:
Software licenses	$	291,081	$	266,213	$	246,577
Cloud subscriptions		276,043		214,617		168,896
Software subscriptions		567,124		480,830		415,473
Services		99,652		91,557		76,151
Total revenues	$	666,776	$	572,387	$	491,624

Contract balances

Timing of revenue recognition may differ from the timing of invoicing customers. A receivable is recorded in the consolidated balance sheets when customers are billed related to revenue to be collected and recognized for subscription agreements as there is an unconditional right to invoice and receive payment in the future related to these subscriptions. A receivable and related revenue may also be recorded in advance of billings to the extent services have been performed and the Company has a right under the contract to bill and collect for such performance. Subscription-based customers are generally invoiced annually at the beginning of each annual subscription period. The Company’s payment terms typically range from 30-60 days. Accounts receivable is presented net of an allowance for potentially uncollectible accounts and estimated cancellations of software license and cloud-based subscriptions (the “allowance”) of $16,838 and $16,272 at December 31, 2024 and 2023, respectively. The allowance is adjusted for expected credit losses based on management’s assessment of collectability after considering factors including the age of each outstanding invoice, collection history of customers, current and forecasted economic conditions as well as estimated cancellations.

The beginning and ending balances of accounts receivable, net of allowance, are as follows:


		2024	2023		2022
Balance, beginning of period	$	141,752	$	102,885	$	76,929
Balance, end of period		164,432		141,752		102,885
Increase	$	22,680	$	38,867	$	25,956

A contract liability is recorded as deferred revenue on the consolidated balance sheets when customers are billed in advance of performance obligations being satisfied, and revenue is recognized after invoicing ratably over the subscription period. Deferred revenue is reflected net of a related deferred allowance for subscription cancellations (the “deferred allowance”) of $12,028 and $11,741 at December 31, 2024 and 2023, respectively. The deferred allowance represents the portion of the allowance for subscription cancellations associated with deferred revenue.

The beginning and ending balances of and changes to the allowance and the deferred allowance are as follows:


	For the year ended December 31,
	2024				2023					2022
	Balance			Net Change	Balance			Net Change		Balance		Net Change
Allowance balance, January 1,	$	(16,272)			$	(9,554)			$	(9,151)
Allowance balance, December 31,		(16,838)				(16,272)				(9,554)
Change in allowance			$	566			$	6,718			$	403
Deferred allowance balance, January 1,		11,741				7,133				6,537
Deferred allowance balance, December 31,		12,028				11,741				7,133
Change in deferred allowance				(287)				(4,608)				(596)
Net amount charged to revenues			$	279			$	2,110			$	(193)

The amount of revenue recognized during the years ended December 31, 2024, 2023, and 2022 that was included in the opening deferred revenue balance of the same fiscal year was $290,143, $268,847, and $237,344, respectively.

The portion of deferred revenue expected to be recognized in revenue beyond one year is included in deferred revenue, net of current portion in the consolidated balance sheets. The tables provide information about the balances of and changes to deferred revenue for the following periods:


	As of December 31,
	2024		2023
Balances:
Deferred revenue, current	$	339,326	$	290,143
Deferred revenue, non-current		4,840		2,577
Total deferred revenue	$	344,166	$	292,720


	For the year ended December 31,
	2024		2023		2022
Changes to deferred revenue:
Beginning balance	$	292,720	$	279,136	$	249,010
Additional amounts deferred		718,222		585,971		521,750
Revenues recognized		(666,776)		(572,387)		(491,624)
Ending balance	$	344,166	$	292,720	$	279,136

Deferred revenue at December 31, 2024 will be recognized as follows for all future years:


Year Ending December 31,
2025	$	339,326
2026		4,840
2027		—
Total	$	344,166

Contract costs

Deferred sales commissions earned by the Company’s sales force and certain sales incentive programs and vendor referral agreements are considered incremental and recoverable costs of obtaining a contract with a customer. An asset is recognized for these incremental contract costs and reflected as deferred commissions in the consolidated balance sheets.

These contract costs are amortized on a straight-line basis over a period consistent with the transfer of the associated product and services to the customer, which is generally one to three years. Amortization of these costs are included in selling and marketing expense in the consolidated statements of comprehensive loss. The Company periodically reviews these contract assets to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these assets. There were no impairment losses recorded for the periods presented.

The changes to contract cost balances as of and for the following periods are:


	For the year ended December 31,
	2024		2023		2022
Deferred commissions:
Beginning balance	$	21,237	$	15,463	$	12,555
Additions		23,736		16,552		13,913
Amortization		(17,493)		(10,778)		(11,005)
Ending balance	$	27,480	$	21,237	$	15,463

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

LEASES - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Lease assets:
Operating lease right-of-use assets	$ 11,956	$ 14,605
Finance lease assets	$ 75	$ 107
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization
Total lease assets	$ 12,031	$ 14,712
Current:
Operating lease liabilities	3,995	3,717
Finance lease liabilities	77	74
Total current lease liabilities	4,072	3,791
Non-current:
Operating lease liabilities, non-current	12,585	16,567
Finance lease liabilities, non-current	10	51
Total non-current lease liabilities	12,595	16,618
Total lease liabilities	$ 16,667	$ 20,409

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenues:
Total Revenues	$ 666,776	$ 572,387	$ 491,624
Cost of revenues:
Total cost of revenues	240,651	223,808	193,132
Gross profit	426,125	348,579	298,492
Operating expenses:
Research and development	66,666	58,212	41,877
Selling and marketing	170,574	140,237	125,335
General and administrative	152,835	145,936	121,651
Depreciation and amortization	20,953	15,202	12,440
Change in fair value of acquisition contingent earn-outs	17,500
Other operating expense (income), net	(175)	6,502	5,271
Total operating expenses	428,353	366,089	306,574
Loss from operations	(2,228)	(17,510)	(8,082)
Interest expense (income), net	(4,137)	4,164	2,048
Income (loss) before income taxes	1,909	(21,674)	(10,130)
Income tax expense (benefit)	54,638	(8,581)	2,174
Net loss	(52,729)	(13,093)	(12,304)
Other comprehensive (income) loss:
Foreign currency translation adjustments, net of tax	24,150	(5,978)	10,219
Unrealized (gain) loss on investments, net of tax	(13)	(32)	36
Total other comprehensive (income) loss, net of tax	24,137	(6,010)	10,255
Total comprehensive loss	(76,866)	(7,083)	(22,559)
Software subscriptions
Revenues:
Total Revenues	567,124	480,830	415,473
Cost of revenues:
Total cost of revenues	175,580	162,920	142,071
Services
Revenues:
Total Revenues	99,652	91,557	76,151
Cost of revenues:
Total cost of revenues	$ 65,071	$ 60,888	$ 51,061
Class A
Other comprehensive (income) loss:
Net loss per share, basic (in dollars per share)	$ (0.34)	$ (0.09)	$ (0.08)
Net loss per share, diluted (in dollars per share)	(0.34)	(0.09)	(0.08)
Class B
Other comprehensive (income) loss:
Net loss per share, basic (in dollars per share)	(0.34)	(0.09)	(0.08)
Net loss per share, diluted (in dollars per share)	$ (0.34)	$ (0.09)	$ (0.08)

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2024

EARNINGS PER SHARE

Schedule of earnings per share basic and diluted


		For the year ended December 31,
		2024				2023				2022
		Class A		Class B		Class A		Class B		Class A		Class B
Basic net loss per share:
Numerator
Allocation of net loss⁽¹⁾	$	(21,974)	$	(30,755)	$	(4,721)	$	(8,372)	$	(3,771)	$	(8,533)
Denominator
Total shares used in per share computation		64,724		90,586		54,753		97,106		45,864		103,781
Basic net loss per share:	$	(0.34)	$	(0.34)	$	(0.09)	$	(0.09)	$	(0.08)	$	(0.08)

Diluted net loss per share:
Numerator
Allocation of net loss⁽¹⁾	$	(21,974)	$	(30,755)	$	(4,721)	$	(8,372)	$	(3,771)	$	(8,533)
Total net loss used in per diluted computation	$	(21,974)	$	(30,755)	$	(4,721)	$	(8,372)	$	(3,771)	$	(8,533)
Denominator
Number shares used in basic per share computation		64,724		90,586		54,753		97,106		45,864		103,781
Dilutive effect of common stock equivalents		—		—		—		—		—		—
Total shares used in per share computation		64,724		90,586		54,753		97,106		45,864		103,781
Dilutive net loss per share:	$	(0.34)	$	(0.34)	$	(0.09)	$	(0.09)	$	(0.08)	$	(0.08)
(1) Allocation of net loss is based on the percentages of shares outstanding.

Schedule of weighted-average outstanding shares of common stock equivalents


	For the year ended December 31,
	2024	2023	2022
Stock Options⁽¹⁾	4,398	6,892	8,222
Out-of-the Money Stock Options	136	482	760
RSAs	63	168	285
RSUs	4,559	3,910	2,254
ESPP	31	42	52
Convertible Senior Notes	6,480	—	—
⁽¹⁾ Total excludes out-of-the money stock options.

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill


	As of December 31,
	2024		2023
Goodwill	$	357,823	$	257,842
Other intangible assets, net		5,198		2,396
Total	$	363,021	$	260,238


	As of December 31,
		2024		2023
Balance, January 1	$	257,842	$	251,842
ecosio acquisition		119,668		—
Foreign currency translation adjustments		(19,687)		6,000
Balance, December 31, gross		357,823		257,842
Accumulated impairment losses		—		—
Balance, December 31, net	$	357,823	$	257,842

Schedule of acquired intangible assets


						2024		2023
Weighted average amortization period (years)						3.3		3.5

	As of December 31, 2024					As of December 31, 2023
		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	12,276	$	8,362	$	8,348	$	6,385
Trademarks and tradenames		2,515		1,231		1,303		1,119
Developed technology		1,027		1,027		1,309		1,060
Total	$	15,818	$	10,620	$	10,960	$	8,564


For the year ended December 31,			Cost of Revenues, Software Subscriptions		Selling and Marketing Expense			Total Expense
2024			$	225	$	2,478	$	2,703
2023				243		2,641		2,884
2022				234		3,779		4,013

Schedule of future amortization expense


Year Ending December 31,
2025	$	2,089
2026		1,865
2027		1,244
2028		—
2029		—
Total	$	5,198

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

+ Details

EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS - 401K Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS
Contribution (as a percent)	6.00%
401(k) matching contributions	$ 12,641	$ 11,285	$ 10,056

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Software Development Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Software Development Costs
Amortization expense for capitalized cloud computing implementation costs	$ 4,007	$ 2,570	$ 0
Minimum
Software Development Costs
Capitalized software development cost amortization extension term	2 years
Amortization term of capitalized software development costs	3 years
Maximum
Software Development Costs
Capitalized software development cost amortization extension term	5 years
Amortization term of capitalized software development costs	5 years

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 357,823	$ 257,842	$ 251,842
Goodwill and other intangible assets	363,021	260,238
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	$ 5,198	$ 2,396

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

CAPITALIZED SOFTWARE (Tables)

12 Months Ended

Dec. 31, 2024

CAPITALIZED SOFTWARE

Schedule of major components of capitalized software


	As of December 31,
	2024		2023
Capitalized software	$	140,562	$	115,152
Less accumulated amortization		(105,175)		(81,410)
Capitalized software, net of accumulated depreciation		35,387		33,742
In-process capitalized software		963		5,029
Capitalized software, net	$	36,350	$	38,771

Schedule of in process capitalized software not available for general release


Year Ending December 31,
2025	$	19,159
2026		12,350
2027		3,877
2028		—
2029		—
Total	$	35,387

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Estimated fair values of Tellutax contingent consideration (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2021 USD ($) payment	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($) Y	Dec. 31, 2022 USD ($)	Jan. 25, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques
Change in fair value of contingent consideration liabilities		$ 14,925	$ 1,549	$ 2,300
Purchase commitment and contingent consideration liabilities, current		35,100	11,901
Purchase commitment and contingent consideration liabilities, net of current portion		87,400	2,600
Tellutax
Fair Value Measurement Inputs and Valuation Techniques
Contingent consideration		0	4,900		$ 2,200
Number of potential earnout payments \| payment	3
Revenue achievement period	30 months
Earn out payment for applicable measurement period	$ 0
Maximum limit on earnout payments	$ 0
Change in fair value of contingent consideration liabilities		$ (2,575)	1,549	$ 2,300
Purchase commitment and contingent consideration liabilities, current			2,300
Purchase commitment and contingent consideration liabilities, net of current portion			$ 2,600
Tellutax \| Revenue volatility
Fair Value Measurement Inputs and Valuation Techniques
Contingent consideration measurement input			60
Tellutax \| Revenue discount rate
Fair Value Measurement Inputs and Valuation Techniques
Contingent consideration measurement input			20.8
Tellutax \| Term (in years)
Fair Value Measurement Inputs and Valuation Techniques
Contingent consideration measurement input \| Y			1.3

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 15,818	$ 10,960
Accumulated amortization	10,620	8,564
Amortization	2,703	2,884	$ 4,013
Cost of Revenues
Finite-Lived Intangible Assets [Line Items]
Amortization	225	243	234
Selling and Marketing Expense
Finite-Lived Intangible Assets [Line Items]
Amortization	2,478	2,641	$ 3,779
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,276	8,348
Accumulated amortization	8,362	6,385
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,515	1,303
Accumulated amortization	1,231	1,119
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,027	1,309
Accumulated amortization	1,027	$ 1,060
Fair Value of other intangible assets	$ 63,800
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	3 years 3 months 18 days	3 years 6 months
Total	$ 5,198	$ 2,396
Other intangible assets \| LCR-Dixon
Finite-Lived Intangible Assets [Line Items]
Amortization	644
Fair Value of other intangible assets	$ 5,950

LEASES (Tables)

12 Months Ended

Dec. 31, 2024

LEASES

Schedule of company's lease assets and lease liabilities and their balance sheet location


		As of December 31,
	Balance Sheet Location	2024		2023
Lease assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	11,956	$	14,605
Finance lease assets	Property and equipment, net (Note 6)		75		107
Total lease assets		$	12,031	$	14,712

Lease liabilities:
Current:
Operating lease liabilities	Current portion of operating lease liabilities	$	3,995	$	3,717
Finance lease liabilities	Current portion of finance lease liabilities		77		74
Total current lease liabilities		$	4,072	$	3,791
Non-current:
Operating lease liabilities	Operating lease liabilities, net of current portion	$	12,585	$	16,567
Finance lease liabilities	Finance lease liabilities, net of current portion		10		51
Total non-current lease liabilities			12,595		16,618
Total lease liabilities		$	16,667	$	20,409

Schedule of company's lease costs, weighted-average term and rate


	For the year ended December 31,
	2024		2023		2022

Operating lease cost	$	3,679	$	4,019	$	3,714

Finance lease cost:
Amortization of lease assets		79		788		1,275
Interest on lease liabilities		6		8		18
Total lease cost	$	3,764	$	4,815	$	5,007


	As of December 31,
	2024		2023
Weighted-average remaining lease term (years):
Operating leases	3.7		4.7
Finance leases	1.1		2.1

Weighted-average discount rate:
Operating leases	2.4	%	2.3	%
Finance leases	6.1	%	5.6	%

Schedule of maturity of operating lease liabilities

Lease liability maturities for the next five years and thereafter are as follows as of December 31, 2024:


	Operating Leases		Finance Leases
2025	$	4,340	$	78
2026		4,766		11
2027		4,738		—
2028		3,482		—
2029		—		—
Thereafter		—		—
Total lease payments		17,326		89
Less: Imputed interest		(746)		(2)
Present value of lease liabilities	$	16,580	$	87

Schedule of maturity of finance lease liabilities


	Operating Leases		Finance Leases
2025	$	4,340	$	78
2026		4,766		11
2027		4,738		—
2028		3,482		—
2029		—		—
Thereafter		—		—
Total lease payments		17,326		89
Less: Imputed interest		(746)		(2)
Present value of lease liabilities	$	16,580	$	87

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Prepaid expenses and other current assets:
Prepaid expenses	$ 15,223	$ 11,558
Unamortized cloud computing implementation costs	4,088	3,995
Prepaid insurance	1,488	521
Prepaid licenses and support	15,879	10,099
Prepaid expenses and other current assets	36,678	26,173
Other assets:
Unamortized cloud computing implementation costs	10,173	12,475
Other assets	3,900	3,538
Total other assets	14,073	16,013
Accrued expenses:
Accrued general expenses	14,862	25,998
Accrued contract labor and professional fees	15,152	13,372
Accrued income and other taxes	5,155	5,365
Accrued expenses	$ 35,169	$ 44,735