0001544784-24-000042 | 10-Q | XBRL Viewer

Print Document

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Allowance for accounts receivable	$ 20,241	$ 16,272
Amortized cost	$ 9,123	$ 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)	62,316	60,989
Common stock, shares outstanding (in shares)	62,316	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)	92,661	92,661
Common stock, shares outstanding (in shares)	92,661	92,661

DEBT

3 Months Ended

Mar. 31, 2024

DEBT

DEBT

7.DEBT

Credit Agreement

The Company has a credit agreement (“Credit Agreement”) with a banking syndicate, which provides (i) a term loan in the aggregate amount of $50,000 (the “Term Loan”); and (ii) a $200,000 revolving facility (the “Line of Credit”).

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


	As of March 31,		As of December 31,
		2024		2023
		(unaudited)
Term Loan	$	2,500	$	2,500
Current portion of long-term debt		2,500		2,500

Term Loan		43,750		44,375
Deferred financing costs		(292)		(316)
Debt, net of current portion	$	43,458	$	44,059
Total debt	$	45,958	$	46,559

- 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 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-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

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

STOCK-BASED AWARD PLANS - Restricted Stock Units (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Units
Beginning balance (in units) \| shares	4,171
Granted (in units) \| shares	1,672
Vested (in units) \| shares	(1,091)
Forfeited (in units) \| shares	(88)
Ending balance (in units) \| shares	4,664
Weighted Average Per Share
Beginning balance (in dollars per share) \| $ / shares	$ 16.11
Granted (in dollars per share) \| $ / shares	25.17
Vested (in dollars per share) \| $ / shares	16.15
Forfeited (in dollars per share) \| $ / shares	15.77
Ending balance (in dollars per share) \| $ / shares	$ 19.35
Unrecognized compensation cost \| $	$ 73,843
Unrecognized compensation expense period	2 years 9 months 18 days
Minimum
Compensation plans:
Service requirement (in years)	1 year
Maximum
Compensation plans:
Service requirement (in years)	4 years

INCOME TAXES

3 Months Ended

Mar. 31, 2024

INCOME TAXES

INCOME TAXES

12. INCOME TAXES

The Company reported income tax (benefit) expense of $(4,535) and $9,553 for the three months ended March 31, 2024 and 2023, respectively. The effective income tax rate ("ETR") was 245.0% for the three months ended March 31, 2024, compared to (111.4)% for the three months ended March 31, 2023.

In determining interim provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to state taxes, foreign taxes, limitations on deductions of certain employees’ compensation under Internal Revenue Code Section 162(m), tax benefits on the exercises and vesting of stock awards, tax credits, and fluctuations in valuation allowances on certain foreign deferred tax assets.

The income tax benefit for the three months ended March 31, 2024 was primarily attributable to tax benefits from stock-based awards exercised or vested during the quarter, net of the impact from limitations on deductions of certain employees’ compensation. The income tax expense for the three months ended March 31, 2023 was primarily attributable to differences in tax rates on foreign jurisdiction income or loss, limitations on deductions of certain employees’ compensation, fluctuations in valuation allowances on certain foreign deferred tax assets, and income tax expense on income allocated to state jurisdictions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: 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 5: 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 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: 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 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: 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 10: 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

STOCK-BASED AWARD PLANS - Stock based compensation, comprehensive loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Allocation of costs
Compensation expense	$ 16,324	$ 11,434
Software subscriptions
Allocation of costs
Compensation expense	1,590	996
Services
Allocation of costs
Compensation expense	1,006	836
Research and development
Allocation of costs
Compensation expense	3,373	2,234
Selling and marketing
Allocation of costs
Compensation expense	4,222	2,898
General and administrative
Allocation of costs
Compensation expense	$ 6,133	$ 4,470

STOCK-BASED AWARD PLANS - 2020 Plan (Details) shares in Thousands	Mar. 31, 2024 shares
Employee Stock Option
Compensation plans:
Shares authorized	20,921

- 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/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

STOCK-BASED AWARD PLANS - Restricted Stock Awards (Details) - Restricted Stock Awards $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Units
Beginning balance (in units) \| shares	91
Ending balance (in units) \| shares	91
Weighted Average Per Share
Beginning balance (in dollars per share) \| $ / shares	$ 21.50
Ending balance (in dollars per share) \| $ / shares	$ 21.50
Unrecognized compensation cost \| $	$ 459
Unrecognized compensation expense period	3 months 18 days
Minimum
Compensation plans:
Service requirement (in years)	1 year
Maximum
Compensation plans:
Service requirement (in years)	4 years

SUBSEQUENT EVENTS (Details) - Subsequent event $ / shares in Units, $ in Thousands	Apr. 26, 2024 USD ($) $ / shares	Apr. 23, 2024 USD ($) $ / shares
SUBSEQUENT EVENTS
Share price \| $ / shares		$ 55.88
Cost of capped call transactions		$ 42,366
Convertible Senior Notes 7.50 Percent, Due 2029 [Member]
SUBSEQUENT EVENTS
Principal amount	$ 345,000
Debt instrument interest rate percentage	0.75%
Additional principal amount	$ 45,000
Conversion rate	27.5315
Conversion price \| $ / shares	$ 36.32
Proceeds from convertible debt	$ 333,650
Cost of capped call transactions	$ 42,366

DEBT (Tables)

3 Months Ended

Mar. 31, 2024

DEBT

Schedule of Debt


	As of March 31,		As of December 31,
		2024		2023
		(unaudited)
Term Loan	$	2,500	$	2,500
Current portion of long-term debt		2,500		2,500

Term Loan		43,750		44,375
Deferred financing costs		(292)		(316)
Debt, net of current portion	$	43,458	$	44,059
Total debt	$	45,958	$	46,559

STOCK-BASED AWARD PLANS - Employee Stock Purchase Plan (Details) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) period shares	Mar. 31, 2023 period
Class A
Compensation plans:
Purchase price as a percent of fair value	85.00%
ESPP
Compensation plans:
Reserved for issuance \| shares	6,451
Amounts withheld from participants	$ 1,135
Unrecognized compensation cost	$ 150
Number of offering periods \| period	2	2
ESPP offering period	6 months
Discount	15.00%	15.00%

REVENUE RECOGNITION - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of revenue:
Total revenues	$ 156,781	$ 132,751
Software subscriptions
Disaggregation of revenue:
Total revenues	131,830	111,014
Software licenses
Disaggregation of revenue:
Total revenues	69,994	62,808
Cloud subscriptions
Disaggregation of revenue:
Total revenues	61,836	48,206
Services
Disaggregation of revenue:
Total revenues	$ 24,951	$ 21,737

- 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 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 2: 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 3: 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 4: 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 5: 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 6: http://www.xbrl.org/2003/role/disclosureRef
-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 7: 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 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef
-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 10: 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 11: 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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023	Dec. 31, 2023 USD ($)
Segment information:
Operating segments \| segment	1
Property and equipment	$ 100,594		$ 100,734
Outside United States
Segment information:
Property and equipment	$ 527		$ 633
Revenue \| Geographic Concentration Risk \| Outside United States
Segment information:
Risk percentage	7.00%	7.00%

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Estimated fair values of Tellutax contingent consideration (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) Y	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) Y
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value adjustments to contingent consideration	$ (800)	$ 200
Purchase commitment and contingent consideration liabilities, current	13,390		$ 11,901
Purchase commitment and contingent consideration liabilities, net of current portion			2,600
Tellutax
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Tellutax Contingent Consideration	4,100		4,900
Fair value adjustments to contingent consideration	(800)	$ 200
Purchase commitment and contingent consideration liabilities, current	$ 4,100		2,300
Purchase commitment and contingent consideration liabilities, net of current portion			$ 2,600
Tellutax \| Revenue volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration measurement input	60.0		60.0
Tellutax \| Revenue discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration measurement input	20.7		20.8
Tellutax \| Term (in years)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration measurement input \| Y	1.1		1.3

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

11. 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 condensed 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.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 2,684	$ (18,132)

- 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 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

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

Reference 9: 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 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: 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//1943274/2147483589/942-220-S99-1

+ Details

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Total revenues	$ 156,781	$ 132,751
Cost of revenues:
Total cost of revenues	60,989	51,747
Gross profit	95,792	81,004
Operating expenses:
Research and development	16,845	15,862
Selling and marketing	40,491	35,736
General and administrative	35,542	34,310
Depreciation and amortization	5,006	3,741
Other operating expense (income), net	(527)	284
Total operating expenses	97,357	89,933
Loss from operations	(1,565)	(8,929)
Interest expense (income), net	286	(350)
Loss before income taxes	(1,851)	(8,579)
Income tax (benefit) expense	(4,535)	9,553
Net income (loss)	2,684	(18,132)
Other comprehensive (income) loss:
Foreign currency translation adjustments, net of tax	4,011	(3,122)
Unrealized (gain) loss on investments, net of tax	17	(13)
Total other comprehensive (income) loss, net of tax	4,028	(3,135)
Total comprehensive loss	(1,344)	(14,997)
Software subscriptions
Revenues:
Total revenues	131,830	111,014
Cost of revenues:
Total cost of revenues	45,128	37,403
Services
Revenues:
Total revenues	24,951	21,737
Cost of revenues:
Total cost of revenues	15,861	14,344
Class A
Other comprehensive (income) loss:
Net income (loss) attributable to stockholders, basic	$ 1,071	$ (6,072)
Net income (loss) per share, basic (in dollars per share)	$ 0.02	$ (0.12)
Weighted average common stock, basic (in shares)	61,560	50,456
Net income (loss) attributable to stockholders, diluted	$ 1,135	$ (6,072)
Net income (loss) per share, diluted (in dollars per share)	$ 0.02	$ (0.12)
Weighted average common stock, diluted (in shares)	67,921	50,456
Class B
Other comprehensive (income) loss:
Net income (loss) attributable to stockholders, basic	$ 1,613	$ (12,060)
Net income (loss) per share, basic (in dollars per share)	$ 0.02	$ (0.12)
Weighted average common stock, basic (in shares)	92,661	100,221
Net income (loss) attributable to stockholders, diluted	$ 1,549	$ (12,060)
Net income (loss) per share, diluted (in dollars per share)	$ 0.02	$ (0.12)
Weighted average common stock, diluted (in shares)	92,661	100,221

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Changes in fair value of Tellutax contingent consideration (Details) - Contingent Consideration $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 4,900
Fair value adjustments	(800)
Ending balance	$ 4,100

STOCKHOLDERS EQUITY (Details) - shares shares in Thousands	3 Months Ended
STOCKHOLDERS EQUITY (Details) - shares shares in Thousands	Mar. 31, 2024	Mar. 31, 2023
Class A
Common Stock
Exercise of stock options, net (in shares)	653	592
Shares exchanged	265	17
Class A \| Restricted Stock Units
Common Stock
Shares issued upon vesting of Restricted Stock Units, net (in shares)	674	391
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	417	231
Class B
Common Stock
Exchange of shares		2,589

- 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 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef
-Topic 272
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483014/272-10-45-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 272
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482987/272-10-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27)(b))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(28))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

+ Details

STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2024

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

8.STOCKHOLDERS’ EQUITY

Common Stock

During the three months ended March 31, 2024 and 2023, the Company issued 653 and 592 shares of Class A common stock, respectively, related to the exercise of options, net of 265 and 17 shares, respectively, returned to the Company in lieu of payment of the exercise price and taxes due on these exercises.

During the three months ended March 31, 2024 and 2023, the Company issued 674 and 391 shares of Class A common stock, respectively, in connection with the vesting of Restricted Stock Units (“RSUs”), net of 417 and 231 shares, respectively, returned to the Company in lieu of payment of taxes due on the vesting of these RSUs.

During the three months ended March 31, 2023, a stockholder exchanged 2,589 shares of Class B common stock for an equivalent number of shares of Class A common stock.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

REVENUE RECOGNITION - Changes to deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
REVENUE RECOGNITION
Beginning balance	$ 292,720	$ 279,136
Additional amounts deferred	165,052	136,731
Revenues recognized	(156,781)	(132,751)
Ending balance	$ 300,991	$ 283,116

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets, end of period:
Cash and cash equivalents	$ 56,134	$ 68,643
Restricted cash-funds held for customers	36,546	25,972
Total cash, cash equivalents and restricted cash, end of period	$ 92,680	$ 94,615

CAPITALIZED SOFTWARE (Details) - USD ($) $ in Thousands	3 Months Ended
CAPITALIZED SOFTWARE (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Capitalized software, movement
Capitalized software, net	$ 38,532		$ 38,771
Capitalized software amortization expense	5,854	$ 4,229
Software
Capitalized software, movement
Capitalized software, gross	124,937		115,152
Less accumulated amortization	(87,264)		(81,410)
Capitalized software, net	37,673		33,742
Capitalized development costs	5,615	$ 4,007
In-process internal-use software
Capitalized software, movement
Capitalized software, gross	$ 859		$ 5,029

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of supplemental balance sheet information


		As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Prepaid expenses and other current assets:
Prepaid expenses	$	12,694	$	11,558
Unamortized cloud computing implementation costs		3,995		3,995
Prepaid insurance		1,002		521
Prepaid licenses and support		14,215		10,099
Prepaid expenses and other current assets	$	31,906	$	26,173

Other assets:
Unamortized cloud computing implementation costs	$	11,480	$	12,475
Other assets		3,294		3,538
Total other assets	$	14,774	$	16,013

Accrued expenses:
Accrued general expenses	$	17,362	$	25,998
Accrued contract labor and professional fees		13,914		13,372
Accrued income and other taxes		5,478		5,365
Accrued expenses	$	36,754	$	44,735

STOCK-BASED AWARD PLANS (Tables)

3 Months Ended

Mar. 31, 2024

Compensation plans:

Schedule of ESPP valuation assumptions


		Offering Period Ending
	5/31/2024			5/31/2023
Fair market value of common stock	$	27.82		$	17.21
Volatility		36.6	%		46.4	%
Expected term (years)		0.5			0.5
Expected dividend yield		-	%		-	%
Risk-free interest rate		5.3	%		4.7	%

Schedule of stock-based compensation cost related to incentive awards


	For the three months ended March 31,
	2024		2023

	(unaudited)
Stock-based compensation expense:
Stock options	$	2,606	$	2,171
RSUs		13,003		8,345
RSAs		490		727
ESPP		225		191
Total stock-based compensation expense	$	16,324	$	11,434

Schedule of stock based compensation cost in consolidated statement of operations


	For the three months ended March 31,
	2024		2023

	(unaudited)
Stock-based compensation expense:
Cost of revenues, software subscriptions	$	1,590	$	996
Cost of revenues, services		1,006		836
Research and development		3,373		2,234
Selling and marketing		4,222		2,898
General and administrative		6,133		4,470
Total stock-based compensation expense	$	16,324	$	11,434

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

	(unaudited)
Outstanding at January 1, 2024	5,692	$	5.32	4.7	$	124,327
Exercised	(918)	$	2.98
2020 Plan options outstanding at March 31, 2024	4,774	$	5.77	4.8		124,161
2020 Plan options exercisable at March 31, 2024	3,582	$	5.07	4.2		95,703

Schedule of outstanding, vested and exercisable



	Options Outstanding		Options Vested and Exercisable
		Weighted		Weighted
		Average		Average
Exercise Prices	Units	Life (Years)	Units	Life (Years)

	(unaudited)
$0.15 to $0.71	769	*	769	*
$2.15	60	0.9	60	0.9
$2.50	1,211	2.4	1,211	2.4
$3.17	323	4.0	323	4.0
$3.73	1,155	5.6	563	5.4
$4.70	566	5.9	225	5.9
$18.47	213	7.7	107	7.7
$18.96	185	7.4	120	7.4
$19.00	50	7.5	17	7.5
$32.16	242	6.9	187	6.9
	4,774		3,582
*These options have indefinite contractual lives.

Restricted Stock Units

Compensation plans:

Schedule of Option activity



		Weighted
		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	4,171	$	16.11
Granted	1,672		25.17
Vested	(1,091)		16.15
Forfeited	(88)		15.77
Outstanding at March 31, 2024	4,664	$	19.35

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
Outstanding at March 31, 2024	91	$	21.50

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2024

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

13. SUBSEQUENT EVENTS

Credit Agreement

On April 19, 2024, the Company entered into the Fourth Amendment to the Credit Agreement (the “Fourth Amendment”) with a banking syndicate, which amended the Credit Agreement, dated as of March 31, 2020, providing for, among other things, amendments of certain definitions.

Indenture and Notes

On April 26, 2024, the Company closed its private offering of $345,000 aggregate principal amount of 0.750% Convertible Senior Notes due 2029 (the “Notes”). 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. Before November 1, 2028, holders have the right to convert their Notes only upon the occurrence of certain events. 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.

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 $333,650, after deducting the initial purchasers’ discount and commissions, and the estimated offering expenses payable by the Company. 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. However, the Company has not designated any specific uses and has no current agreements with respect to any acquisition or strategic transaction.

Capped Call Transactions

In connection with the pricing of the Notes on April 23, 2024, the Company entered into privately negotiated capped call transactions (together, the “Base Capped Call Transactions”) 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 cost of the Capped Call Transactions was $42,366.

REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2024

REVENUE RECOGNITION

REVENUE RECOGNITION

2. REVENUE RECOGNITION

Disaggregation of revenue

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


	Three months ended March 31,
		2024	2023

	(unaudited)
Software subscriptions:
Software licenses	$	69,994	$	62,808
Cloud subscriptions		61,836		48,206
Software subscriptions		131,830		111,014
Services		24,951		21,737
Total revenues	$	156,781	$	132,751

Contract balances

Timing of revenue recognition may differ from the timing of invoicing customers. A receivable is recorded in the condensed 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. 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 $20,241 and $16,272 at March 31, 2024 and December 31, 2023, respectively. The allowance for potentially uncollectible accounts represents future expected credit losses over the life of the receivables based on past experience, current information and forward-looking economic considerations.

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


	For the three months ended March 31, 2024		For the year ended December 31, 2023
	(unaudited)
Balance, beginning of period	$	141,752	$	102,885
Balance, end of period		133,149		141,752
Increase (decrease), net	$	(8,603)	$	38,867

A contract liability is recorded as deferred revenue on the condensed 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 $14,634 and $11,741 at March 31, 2024 and December 31, 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 three months ended March 31,
	2024				2023
	Balance			Net Change	Balance			Net Change

	(unaudited)
Allowance balance, January 1,	$	(16,272)			$	(9,554)
Allowance balance, March 31,		(20,241)				(10,641)
Change in allowance			$	3,969			$	1,087
Deferred allowance balance, January 1,		11,741				7,133
Deferred allowance balance, March 31,		14,634				7,516
Change in deferred allowance				(2,893)				(383)
Net amount charged to revenues			$	1,076			$	704

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 condensed consolidated balance sheets. The following table provides information about the balances of and changes to deferred revenue for the following periods:


	For the three months ended March 31,
	2024		2023

	(unaudited)
Changes to deferred revenue:
Beginning balance	$	292,720	$	279,136
Additional amounts deferred		165,052		136,731
Revenues recognized		(156,781)		(132,751)
Ending balance	$	300,991	$	283,116

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 condensed 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 three years. Amortization of these costs are included in selling and marketing expense in the condensed consolidated statements of comprehensive income (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 three months ended March 31,
	2024		2023

	(unaudited)
Deferred commissions:
Beginning balance	$	21,237	$	15,463
Additions		3,984		2,851
Amortization		(3,920)		(2,393)
Ending balance	$	21,301	$	15,921

- 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

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

EARNINGS PER SHARE

EARNINGS PER SHARE

9. EARNINGS PER SHARE

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


	For the three months ended March 31,
Class A common stock:	2024			2023

	(unaudited)
Numerator, basic:
Net income (loss) attributable to all stockholders	$	2,684		$	(18,132)
Class A common stock as a percentage of total shares outstanding, basic		39.92	%		33.49	%
Net income (loss) attributable to Class A stockholders, basic	$	1,071		$	(6,072)

Numerator, diluted:
Net income (loss) attributable to all stockholders	$	2,684		$	(18,132)
Class A common stock as a percentage of total shares outstanding, diluted		42.30	%		33.49	%
Net income (loss) attributable to Class A stockholders, diluted	$	1,135		$	(6,072)

Denominator, basic and diluted:
Weighted average Class A common stock, basic		61,560			50,456
Dilutive effect of common stock equivalents⁽¹⁾		6,361			—
Weighted average Class A common stock, diluted		67,921			50,456

Net income (loss) per Class A share, basic	$	0.02		$	(0.12)
Net income (loss) per Class A share, diluted	$	0.02		$	(0.12)

(1)

For the three months ended March 31, 2023, 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: 8,335 options (including 705 out-of-the-money options), 235 restricted stock awards (“RSAs”), 3,141 RSUs, and 45 shares under the ESPP.


	For the three months ended March 31,
Class B common stock:	2024			2023

	(unaudited)
Numerator, basic:
Net income (loss) attributable to all stockholders	$	2,684		$	(18,132)
Class B common stock as a percentage of total shares outstanding, basic		60.08	%		66.51	%
Net income (loss) attributable to Class B stockholders, basic	$	1,613		$	(12,060)

Numerator, diluted:
Net income (loss) attributable to all stockholders	$	2,684		$	(18,132)
Class B common stock as a percentage of total shares outstanding, diluted		57.70	%		66.51	%
Net income (loss) attributable to Class B stockholders, diluted	$	1,549		$	(12,060)

Denominator, basic and diluted:
Weighted average Class B common stock, basic		92,661			100,221
Dilutive effect of common stock equivalents		—			—
Weighted average Class B common stock, diluted		92,661			100,221

Net income (loss) per Class B share, basic	$	0.02		$	(0.12)
Net income (loss) per Class B share, diluted	$	0.02		$	(0.12)

REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2024

REVENUE RECOGNITION

Schedule of disaggregation of revenue


	Three months ended March 31,
		2024	2023

	(unaudited)
Software subscriptions:
Software licenses	$	69,994	$	62,808
Cloud subscriptions		61,836		48,206
Software subscriptions		131,830		111,014
Services		24,951		21,737
Total revenues	$	156,781	$	132,751

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


	For the three months ended March 31, 2024		For the year ended December 31, 2023
	(unaudited)
Balance, beginning of period	$	141,752	$	102,885
Balance, end of period		133,149		141,752
Increase (decrease), net	$	(8,603)	$	38,867

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


	For the three months ended March 31,
	2024				2023
	Balance			Net Change	Balance			Net Change

	(unaudited)
Allowance balance, January 1,	$	(16,272)			$	(9,554)
Allowance balance, March 31,		(20,241)				(10,641)
Change in allowance			$	3,969			$	1,087
Deferred allowance balance, January 1,		11,741				7,133
Deferred allowance balance, March 31,		14,634				7,516
Change in deferred allowance				(2,893)				(383)
Net amount charged to revenues			$	1,076			$	704

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


	For the three months ended March 31,
	2024		2023

	(unaudited)
Changes to deferred revenue:
Beginning balance	$	292,720	$	279,136
Additional amounts deferred		165,052		136,731
Revenues recognized		(156,781)		(132,751)
Ending balance	$	300,991	$	283,116

Schedule of information about the changes to contract cost balances


	For the three months ended March 31,
	2024		2023

	(unaudited)
Deferred commissions:
Beginning balance	$	21,237	$	15,463
Additions		3,984		2,851
Amortization		(3,920)		(2,393)
Ending balance	$	21,301	$	15,921

STOCK-BASED AWARD PLANS - Options under 2020 Plan (Details) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Units
Beginning, balance	5,692
Granted	0	0
Exercised	(918)
Ending balance	4,774		5,692
Exercisable	3,582
Weighted Average Per Share
Beginning balance	$ 5.32
Exercised	2.98
Ending Balance	5.77		$ 5.32
Exercisable	$ 5.07
Remaining contractual life, outstanding	4 years 9 months 18 days		4 years 8 months 12 days
Remaining contractual life, exercisable	4 years 2 months 12 days
Intrinsic value, outstanding	$ 124,161		$ 124,327
Intrinsic value, exercisable	95,703
Unrecognized compensation cost	$ 3,628
Unrecognized compensation expense period	1 year
Minimum
Weighted Average Per Share
Vesting period	1 year
Maximum
Weighted Average Per Share
Vesting period	4 years

Insider Trading Arrangements - Eric Andersen [Member]	3 Months Ended
Insider Trading Arrangements - Eric Andersen [Member]	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On March 4, 2024, Eric Andersen, Director, terminated a Rule 10b5-1 trading arrangement dated August 18, 2023, which was intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 80,000 shares of Class A common stock. Other than this termination, during the three months ended March 31, 2024, no other director or officer of the Company adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408 of Regulation S-K.
Name	Eric Andersen
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 18, 2023
Rule 10b5-1 Arrangement Terminated	true
Termination Date	March 4, 2024
Aggregate Available	80,000

CAPITALIZED SOFTWARE

3 Months Ended

Mar. 31, 2024

CAPITALIZED SOFTWARE

CAPITALIZED SOFTWARE

5. 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 March 31,		As of December 31,
	2024		2023
	(unaudited)
Capitalized software	$	124,937	$	115,152
Less accumulated amortization		(87,264)		(81,410)
Capitalized software, net of accumulated depreciation		37,673		33,742
In-process capitalized software		859		5,029
Capitalized software, net	$	38,532	$	38,771

Software development costs capitalized for the three months ended March 31, 2024 and 2023, excluding acquisitions, were $5,615 and $4,007, respectively.

Capitalized software amortization expense, including amortization of acquired technology, was $5,854 and $4,229 for the three months ended March 31, 2024 and 2023, respectively, and is included in cost of revenues, software subscriptions in the condensed consolidated statements of comprehensive income (loss).

PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Property and equipment
Finance lease amortization	$ 22	$ 279
Property and equipment, gross	275,140		$ 263,648
Property and equipment, net of accumulated depreciation	100,594		100,734
Accumulated amortization	174,546		162,914
Excluding internal-use software and capital leases
Property and equipment
Depreciation expense	1,245	1,517
Assets under finance leases
Property and equipment
Property and equipment, gross	297		297
Accumulated amortization	211		190
Internal-use software
Property and equipment
Property and equipment, gross	216,181		181,732
Property and equipment, net of accumulated depreciation	90,114		88,969
Accumulated amortization	134,073		121,646
Depreciation expense	9,432	8,148
Internal Systems and Tools
Property and equipment
Property and equipment, gross	58,250		$ 39,430
Depreciation expense	$ 3,739	$ 1,945

STOCK-BASED AWARD PLANS - Options under 2020 Plan Price Range (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
$0.15 to $0.71
Options outstanding, vested and exercisable:
Exercise prices, lower range \| $ / shares	$ 0.15
Exercise prices, upper range \| $ / shares	$ 0.71
Employee Stock Option
Options outstanding, vested and exercisable:
Options outstanding	4,774
Options outstanding, life	0 years
Options vested and exercisable	3,582
Options vested and exercisable, life	0 years
Employee Stock Option \| $0.15 to $0.71
Options outstanding, vested and exercisable:
Options outstanding	769
Options vested and exercisable	769
Employee Stock Option \| $2.15
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 2.15
Options outstanding	60
Options outstanding, life	10 months 24 days
Options vested and exercisable	60
Options vested and exercisable, life	10 months 24 days
Employee Stock Option \| $2.50
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 2.50
Options outstanding	1,211
Options outstanding, life	2 years 4 months 24 days
Options vested and exercisable	1,211
Options vested and exercisable, life	2 years 4 months 24 days
Employee Stock Option \| $3.17
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 3.17
Options outstanding	323
Options outstanding, life	4 years
Options vested and exercisable	323
Options vested and exercisable, life	4 years
Employee Stock Option \| $3.73
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 3.73
Options outstanding	1,155
Options outstanding, life	5 years 7 months 6 days
Options vested and exercisable	563
Options vested and exercisable, life	5 years 4 months 24 days
Employee Stock Option \| $4.70
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 4.70
Options outstanding	566
Options outstanding, life	5 years 10 months 24 days
Options vested and exercisable	225
Options vested and exercisable, life	5 years 10 months 24 days
Employee Stock Option \| $18.47
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 18.47
Options outstanding	213
Options outstanding, life	7 years 8 months 12 days
Options vested and exercisable	107
Options vested and exercisable, life	7 years 8 months 12 days
Employee Stock Option \| $18.96
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 18.96
Options outstanding	185
Options outstanding, life	7 years 4 months 24 days
Options vested and exercisable	120
Options vested and exercisable, life	7 years 4 months 24 days
Employee Stock Option \| $19.00
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 19.00
Options outstanding	50
Options outstanding, life	7 years 6 months
Options vested and exercisable	17
Options vested and exercisable, life	7 years 6 months
Employee Stock Option \| $32.16
Options outstanding, vested and exercisable:
Exercise prices \| $ / shares	$ 32.16
Options outstanding	242
Options outstanding, life	6 years 10 months 24 days
Options vested and exercisable	187
Options vested and exercisable, life	6 years 10 months 24 days

REVENUE RECOGNITION - Contract cost balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Deferred commissions:
Beginning balance	$ 21,237	$ 15,463
Additions	3,984	2,851
Amortization	(3,920)	(2,393)
Ending balance	$ 21,301	$ 15,921
Contract costs, amortization period	3 years
Impairment loss	$ 0

PROPERTY AND EQUIPMENT - Amounts included in property and equipment additions related to capitalized internal-use software (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cloud-Based Customer Solutions
Property and equipment
Total	$ 9,687	$ 6,182
Internal Systems and Tools
Property and equipment
Total	4,762	3,594
Internal-use software
Property and equipment
Total	$ 14,449	$ 9,776

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

Class A

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

Schedule of earnings per share basic and diluted


	For the three months ended March 31,
Class A common stock:	2024			2023

	(unaudited)
Numerator, basic:
Net income (loss) attributable to all stockholders	$	2,684		$	(18,132)
Class A common stock as a percentage of total shares outstanding, basic		39.92	%		33.49	%
Net income (loss) attributable to Class A stockholders, basic	$	1,071		$	(6,072)

Numerator, diluted:
Net income (loss) attributable to all stockholders	$	2,684		$	(18,132)
Class A common stock as a percentage of total shares outstanding, diluted		42.30	%		33.49	%
Net income (loss) attributable to Class A stockholders, diluted	$	1,135		$	(6,072)

Denominator, basic and diluted:
Weighted average Class A common stock, basic		61,560			50,456
Dilutive effect of common stock equivalents⁽¹⁾		6,361			—
Weighted average Class A common stock, diluted		67,921			50,456

Net income (loss) per Class A share, basic	$	0.02		$	(0.12)
Net income (loss) per Class A share, diluted	$	0.02		$	(0.12)

(1)

Class B

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

Schedule of earnings per share basic and diluted


	For the three months ended March 31,
Class B common stock:	2024			2023

	(unaudited)
Numerator, basic:
Net income (loss) attributable to all stockholders	$	2,684		$	(18,132)
Class B common stock as a percentage of total shares outstanding, basic		60.08	%		66.51	%
Net income (loss) attributable to Class B stockholders, basic	$	1,613		$	(12,060)

Numerator, diluted:
Net income (loss) attributable to all stockholders	$	2,684		$	(18,132)
Class B common stock as a percentage of total shares outstanding, diluted		57.70	%		66.51	%
Net income (loss) attributable to Class B stockholders, diluted	$	1,549		$	(12,060)

Denominator, basic and diluted:
Weighted average Class B common stock, basic		92,661			100,221
Dilutive effect of common stock equivalents		—			—
Weighted average Class B common stock, diluted		92,661			100,221

Net income (loss) per Class B share, basic	$	0.02		$	(0.12)
Net income (loss) per Class B share, diluted	$	0.02		$	(0.12)

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2024

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

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


	Fair Value Measurements Using
As of March 31, 2024 (unaudited)	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	$	42,763	$	42,763		—		—
Commercial Paper		6,158		—		6,158		—
U.S. Treasury Securities		4,430		—		4,430		—
Tellutax Contingent Consideration		4,100		—		—		4,100
Foreign Currency Forward Contracts		677		—		677		—

	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		—

Summary of estimated fair value of Tellutax contingent consideration


	March 31, 2024 (unaudited)
Liability	Fair Value		Valuation Technique	Unobservable Inputs
Tellutax Contingent Consideration	$	4,100	Monte Carlo Simulation	Revenue volatility	60.0	%
				Revenue discount rate	20.7	%
				Term (in years)	1.1

	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

Changes in fair value of Tellutax contingent consideration


	Tellutax
	Contingent
	Consideration
	(unaudited)
Balance, January 1, 2024	$	4,900
Fair value adjustments		(800)
Balance, March 31, 2024	$	4,100

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Vertex, Inc. (“Vertex”) and its consolidated subsidiaries and variable interest entities (“VIE”) (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

Basis of Consolidation

The condensed 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.

The Company has an 80% controlling equity interest in Systax Sistemas Fiscais LTDA (“Systax”), a provider of Brazilian transaction tax content and software. Systax was determined to be a VIE and the accounts are included in the condensed consolidated financial statements. Vertex does not have full decision-making authority over Systax; however, Vertex is the entity that most significantly participates in the variability of the fair value of Systax’s net assets and is considered the entity most closely associated to Systax. As such, Vertex is deemed the primary beneficiary of Systax and consolidates Systax into its condensed consolidated financial statements.

Unaudited Interim Financial Information

Unaudited Interim Financial Information

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information and include the accounts of the Company. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”) filed with the SEC on February 29, 2024. The condensed consolidated balance sheet as of December 31, 2023 has been derived from audited financial statements included in the 2023 Annual Report. The accompanying interim condensed consolidated balance sheet as of March 31, 2024, the interim condensed consolidated statements of comprehensive income (loss) and changes in stockholders’ equity for the three months ended March 31, 2024 and 2023, and the interim condensed consolidated statements of cash flows for the three months ended March 31, 2024 and 2023 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the annual audited consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items necessary for the fair presentation of the condensed consolidated financial statements. The operating results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024.

Segments

Segments

The Company operates its business as one operating segment. For both the three months ended March 31, 2024 and March 31, 2023, approximately 7% of the Company’s revenues were generated from customers located outside the U.S. As of March 31, 2024 and December 31, 2023, $527 and $633, respectively, of the Company’s property and equipment assets were held outside the U.S.

Use of Estimates

Use of Estimates

The preparation of condensed 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 condensed 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 (“CCA”) 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, contingent consideration liabilities, 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 condensed consolidated financial statements or tax returns. Actual results may differ from these estimates.

Software Development Costs

Software Development Costs

Cloud Computing Software Implementation Costs

The Company follows Accounting Standards Codification (“ASC”) 350-40, Goodwill and Other, Internal-Use Software, 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 third-party consulting fees, 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, or 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.

Capitalized Cloud Implementation Costs

Amortization expense for capitalized cloud computing implementation costs for the three months ended March 31, 2024 was $994 and is included in general and administrative expense in the condensed consolidated statements of comprehensive income (loss). There was no amortization expense for the three months ended March 31, 2023.

Supplemental Balance Sheet Disclosures

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


		As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Prepaid expenses and other current assets:
Prepaid expenses	$	12,694	$	11,558
Unamortized cloud computing implementation costs		3,995		3,995
Prepaid insurance		1,002		521
Prepaid licenses and support		14,215		10,099
Prepaid expenses and other current assets	$	31,906	$	26,173

Other assets:
Unamortized cloud computing implementation costs	$	11,480	$	12,475
Other assets		3,294		3,538
Total other assets	$	14,774	$	16,013

Accrued expenses:
Accrued general expenses	$	17,362	$	25,998
Accrued contract labor and professional fees		13,914		13,372
Accrued income and other taxes		5,478		5,365
Accrued expenses	$	36,754	$	44,735

Recently Issued or Adopted Accounting Pronouncements

Segment Reporting

In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“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. The standard will be effective for annual periods in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Entities must adopt the changes to the segment reporting guidance on a retrospective basis. The Company is continuing to assess the potential impacts of the amendments, and it does not expect this pronouncement to have a material effect on its consolidated financial statements, other than the required changes to the segment disclosures.

Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires entities 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. ASU 2023-09 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. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively, and early adoption is 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.

INCOME TAXES - (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
INCOME TAXES - (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
INCOME TAXES
Income tax expense (benefit)	$ (4,535)	$ 9,553
Effective tax rate (as a percent)	245.00%	(111.40%)
U.S. federal statutory income tax rate	21.00%		21.00%

- Definition

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

+ References + Details

GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

6. GOODWILL AND OTHER INTANGIBLE ASSETS

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


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Goodwill	$	253,966	$	257,842
Other intangible assets, net		1,715		2,396
Total	$	255,681	$	260,238

The Company has recognized various amortizable other intangible assets in connection with acquisitions related to customer relationships, technology, and tradenames. The following tables provide additional information for other intangible assets, which are individually not material to the condensed consolidated financial statements, for the periods presented:


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Weighted average amortization period (years)		3.5		3.5

Gross value	$	10,830	$	10,960
Accumulated amortization		(9,115)		(8,564)
Carrying value	$	1,715	$	2,396

The following table presents amortization of other intangible assets:


For the three months ended March 31,	Cost of Revenues, Software Subscriptions		Selling and Marketing Expense			Total Expense
2024	$	61	$	595	$	656
2023		58		766		824

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Non-recurring Fair Value Measurements (Details) - Systax - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchase commitment liability	$ 12,592
Adjustment due to currency exchange rates fluctuation	0	$ 0
Minimum Purchase Commitment liability	$ 9,290		$ 9,601

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Software Development Costs and Supplemental Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Cloud computing implementation costs
Amortization of cloud computing implementation costs	$ 994	$ 0
Prepaid expenses and other current assets:
Prepaid expenses	12,694		$ 11,558
Unamortized cloud computing implementation costs	3,995		3,995
Prepaid Insurance	1,002		521
Prepaid licenses and support	14,215		10,099
Prepaid expenses and other current assets	31,906		26,173
Other assets:
Unamortized cloud computing implementation costs	11,480		12,475
Other assets	3,294		3,538
Total other assets	14,774		16,013
Accrued expenses:
Accrued general expenses	17,362		25,998
Accrued contract labor and professional fees	13,914		13,372
Accrued income and other taxes	5,478		5,365
Accrued expenses	$ 36,754		$ 44,735
Minimum
Cloud computing implementation costs
Capitalized software development cost amortization extension term	2 years
Maximum
Cloud computing implementation costs
Capitalized software development cost amortization extension term	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Basis of Consolidation

Unaudited Interim Financial Information

Segments

Use of Estimates

Software Development Costs

Cloud Computing Software Implementation Costs

Supplemental Balance Sheet Disclosures

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


		As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Prepaid expenses and other current assets:
Prepaid expenses	$	12,694	$	11,558
Unamortized cloud computing implementation costs		3,995		3,995
Prepaid insurance		1,002		521
Prepaid licenses and support		14,215		10,099
Prepaid expenses and other current assets	$	31,906	$	26,173

Other assets:
Unamortized cloud computing implementation costs	$	11,480	$	12,475
Other assets		3,294		3,538
Total other assets	$	14,774	$	16,013

Accrued expenses:
Accrued general expenses	$	17,362	$	25,998
Accrued contract labor and professional fees		13,914		13,372
Accrued income and other taxes		5,478		5,365
Accrued expenses	$	36,754	$	44,735

Recently Issued or Adopted Accounting Pronouncements

Segment Reporting

Income Tax Disclosures

PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2024

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

The major components of property and equipment are as follows:


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Leasehold improvements	$	20,658	$	20,662
Equipment		20,239		22,012
Computer software purchased		2,388		2,690
Internal-use software developed:
Cloud-based customer solutions		157,931		142,302
Internal systems and tools		58,250		39,430
Furniture and fixtures		7,668		7,669
In-process internal-use software		8,006		28,883
Property and equipment		275,140		263,648
Less accumulated depreciation and amortization		(174,546)		(162,914)
Property and equipment, net	$	100,594	$	100,734

Depreciation expense for property and equipment, excluding all internal-use software developed and finance leases, was $1,245 and $1,517 for the three months ended March 31, 2024 and 2023, respectively, and is reflected in depreciation and amortization in the condensed consolidated statements of comprehensive income (loss).

Finance lease amortization was $22 and $279 for the three months ended March 31, 2024 and 2023, respectively, and is included in depreciation and amortization expense in the condensed consolidated statements of comprehensive income (loss).

Assets under finance leases of $297 and $297, net of accumulated amortization of $211 and $190, respectively, at March 31, 2024 and December 31, 2023, respectively, are included in property and equipment in the condensed consolidated balance sheets.

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


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Internal-use software developed	$	216,181	$	181,732
Less accumulated depreciation		(134,073)		(121,646)
Internal-use software developed, net of accumulated depreciation		82,108		60,086
In-process internal-use software		8,006		28,883
Internal-use software developed, net	$	90,114	$	88,969

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


	For the three months ended March 31,
	2024		2023

	(unaudited)
Cloud-based customer solutions	$	9,687	$	6,182
Internal systems and tools		4,762		3,594
Total	$	14,449	$	9,776

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 three months ended March 31, 2024 and 2023 was $9,432 and $8,148, respectively, and is included in cost of revenues, software subscriptions in the condensed consolidated statements of comprehensive income (loss).

Depreciation expense for internal-use software developed for internal systems and tools for the three months ended March 31, 2024 and 2023 was $3,739 and $1,945, respectively, and is included in depreciation and amortization in the condensed consolidated statements of comprehensive income (loss).

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ 2,684	$ (18,132)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	20,948	16,942
Amortization of cloud computing implementation costs	994
Provision for subscription cancellations and non-renewals	1,082	697
Amortization of deferred financing costs	146	63
Change in fair value of contingent consideration liabilities	(800)	200
Stock-based compensation expense	16,324	11,434
Deferred income tax benefit	(2,588)	(12,984)
Non-cash operating lease costs	828	726
Other	(106)	(4)
Changes in operating assets and liabilities:
Accounts receivable	4,478	(795)
Prepaid expenses and other current assets	(7,335)	(3,740)
Deferred commissions	(64)	(459)
Accounts payable	(1,153)	3,065
Accrued expenses	(8,486)	17,578
Accrued and deferred compensation	(14,515)	(12,452)
Deferred revenue	11,177	4,352
Operating lease liabilities	(1,125)	(1,309)
Other	2,077	(1,691)
Net cash provided by operating activities	24,566	3,491
Cash flows from investing activities:
Property and equipment additions	(14,449)	(10,049)
Capitalized software additions	(5,615)	(4,007)
Purchase of investment securities, available-for-sale	(4,271)	(3,491)
Proceeds from sales and maturities of investment securities, available-for-sale	4,800	3,250
Net cash used in investing activities	(19,535)	(14,297)
Cash flows from financing activities:
Net increase in customer funds obligations	15,939	10,989
Principal payments on long-term debt	(625)	(313)
Payments for deferred financing costs	(89)
Payments for taxes related to net share settlement of stock-based awards	(17,862)	(3,681)
Proceeds from exercise of stock options	1,510	1,490
Payments of finance lease liabilities	(26)	(16)
Payments for deferred purchase commitments		(10,000)
Net cash used in financing activities	(1,153)	(1,531)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(349)	204
Net increase (decrease) in cash, cash equivalents and restricted cash	3,529	(12,133)
Cash, cash equivalents and restricted cash, beginning of period	89,151	106,748
Cash, cash equivalents and restricted cash, end of period	$ 92,680	$ 94,615

CAPITALIZED SOFTWARE (Tables)

3 Months Ended

Mar. 31, 2024

CAPITALIZED SOFTWARE

Schedule of major components of capitalized software


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Capitalized software	$	124,937	$	115,152
Less accumulated amortization		(87,264)		(81,410)
Capitalized software, net of accumulated depreciation		37,673		33,742
In-process capitalized software		859		5,029
Capitalized software, net	$	38,532	$	38,771

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Goodwill	$	253,966	$	257,842
Other intangible assets, net		1,715		2,396
Total	$	255,681	$	260,238

Schedule of other acquired intangible assets


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Weighted average amortization period (years)		3.5		3.5

Gross value	$	10,830	$	10,960
Accumulated amortization		(9,115)		(8,564)
Carrying value	$	1,715	$	2,396

Schedule of acquired intangible assets


For the three months ended March 31,	Cost of Revenues, Software Subscriptions		Selling and Marketing Expense			Total Expense
2024	$	61	$	595	$	656
2023		58		766		824

- 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

REVENUE RECOGNITION - Allowance and deferred allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Allowance for credit loss
Beginning balance	$ (16,272)	$ (9,554)
Ending balance	(20,241)	(10,641)
Change in allowance	3,969	1,087
Deferred beginning balance	11,741	7,133
Deferred ending balance	14,634	7,516
Change in deferred allowance	(2,893)	(383)
Net amount charged to revenues	1,076	$ 704
Software subscriptions
Allowance for credit loss
Beginning balance	(16,272)
Ending balance	(20,241)
Deferred beginning balance	11,741
Deferred ending balance	$ 14,634

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) $ in Thousands	1 Months Ended
	Jan. 31, 2021 USD ($) payment	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Forward foreign current contract, asset		$ 677	$ 849
Significant other observable inputs (Level 2) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Forward foreign current contract, asset		677	849
Money Market Funds \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure		42,763	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		42,763	53,049
Commercial Paper \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure		6,158	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		6,158	7,168
U.S. Treasury Securities \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets, Fair Value Disclosure		4,430	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		4,430	3,621
Tellutax
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Tellutax Contingent Consideration		4,100	4,900
Number of potential earnout payments \| payment	3
Revenue achievement period	30 months
Maximum limit on earnout payments	$ 0
Earn out payment for applicable measurement period	$ 0
Tellutax \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Tellutax Contingent Consideration		4,100	4,900
Tellutax \| Significant unobservable inputs (Level 3) \| Fair Value, Recurring
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Tellutax Contingent Consideration		$ 4,100	$ 4,900

Condensed Consolidated Statements of Changes in 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 Loss	Class A	Class B	Total
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	$ 1		1,279					1,280
Exercise of stock options, net (in shares)	592					592
Shares issued upon vesting of Restricted Stock Units, net			(3,471)					(3,471)
Shares issued upon vesting of Restricted Stock Units, net (in shares)	391
Stock-based compensation expense			10,938					10,938
Class B shares exchanged for Class A shares	$ 2	$ (2)
Class B shares exchanged for Class A shares (in shares)	2,589	(2,589)
Foreign currency translation adjustments and revaluations, net of tax					3,122			3,122
Unrealized gain (loss) from available-for-sale investments, net of tax					13			13
Net income (loss)				(18,132)				(18,132)
Balance at Mar. 31, 2023	$ 53	$ 98	253,566	(5,625)	(24,617)			223,475
Balance (in shares) at Mar. 31, 2023	53,586	97,718
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			(5,454)					(5,454)
Exercise of stock options, net (in shares)	653					653
Shares issued upon vesting of Restricted Stock Units, net	$ 1		(10,899)					(10,898)
Shares issued upon vesting of Restricted Stock Units, net (in shares)	674
Stock-based compensation expense			14,845					14,845
Foreign currency translation adjustments and revaluations, net of tax					(4,011)			(4,011)
Unrealized gain (loss) from available-for-sale investments, net of tax					(17)			(17)
Net income (loss)				2,684				2,684
Balance at Mar. 31, 2024	$ 62	$ 93	$ 273,647	$ 2,098	$ (25,770)			$ 250,130
Balance (in shares) at Mar. 31, 2024	62,316	92,661				62,316	92,661

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Mar. 31, 2024
Systax - VIE \| Systax
Accounting policies:
Ownership (as a percent)	80.00%

STOCK-BASED AWARD PLANS

3 Months Ended

Mar. 31, 2024

STOCK-BASED AWARD PLANS

STOCK-BASED AWARD PLANS

10. 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 Company issued stock options, RSAs, and RSUs under the 2020 Plan. As of March 31, 2024, 20,921 shares of Class A common stock were available for issuance under the 2020 Plan.

Options

The following table summarizes activity for options outstanding under the 2020 Plan for the three months ended March 31, 2024:


				Weighted
			Weighted	Average
			Average	Remaining	Aggregate
			Exercise	Contractual	Intrinsic
2020 Plan Option Activity	Units		Price	Life (Years)	Value

	(unaudited)
Outstanding at January 1, 2024	5,692	$	5.32	4.7	$	124,327
Exercised	(918)	$	2.98
2020 Plan options outstanding at March 31, 2024	4,774	$	5.77	4.8		124,161
2020 Plan options exercisable at March 31, 2024	3,582	$	5.07	4.2		95,703

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



	Options Outstanding		Options Vested and Exercisable
		Weighted		Weighted
		Average		Average
Exercise Prices	Units	Life (Years)	Units	Life (Years)

	(unaudited)
$0.15 to $0.71	769	*	769	*
$2.15	60	0.9	60	0.9
$2.50	1,211	2.4	1,211	2.4
$3.17	323	4.0	323	4.0
$3.73	1,155	5.6	563	5.4
$4.70	566	5.9	225	5.9
$18.47	213	7.7	107	7.7
$18.96	185	7.4	120	7.4
$19.00	50	7.5	17	7.5
$32.16	242	6.9	187	6.9
	4,774		3,582
*These options have indefinite contractual lives.

The Board of Directors (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 common stock underlying the options on the date of grant. Compensation expense for option awards are measured based on the grant date fair value of the awards and recognized in the condensed consolidated statements of comprehensive income (loss) over the period during which the participant is required to perform the requisite services. The vesting period is generally one to four years. The grant date fair value of options is estimated using the Black-Scholes model.

There were no options issued under the 2020 Plan during the three months ended March 31, 2024 or 2023.

At March 31, 2024, $3,628 of unrecognized compensation expense associated with options is expected to be recognized over a weighted average period of approximately 1.0 years.

Restricted Stock Units

The following table summarizes RSU activity for the three months ended March 31, 2024:



		Weighted
		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	4,171	$	16.11
Granted	1,672		25.17
Vested	(1,091)		16.15
Forfeited	(88)		15.77
Outstanding at March 31, 2024	4,664	$	19.35

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 and is recognized on a straight-line basis in the condensed consolidated statements of comprehensive income (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. Vested RSUs are settled by issuing Class A shares or the equivalent value in cash at the Board’s discretion. At March 31, 2024, $73,843 of unrecognized compensation cost for RSUs is expected to be recognized over a weighted average period of approximately 2.8 years.

Restricted Stock Awards

The following table summarizes RSA activity for the three months ended March 31, 2024:



		Weighted
		Average
		Grant Date Fair
	Units	Value Per Share
Outstanding at January 1, 2024	91	$	21.50
Outstanding at March 31, 2024	91	$	21.50

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 and is recognized on a straight-line basis in the condensed consolidated statements of comprehensive income (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 March 31, 2024, $459 of unrecognized compensation cost for RSAs is expected to be recognized over a weighted average period of approximately 0.3 years.

Employee Stock Purchase Plan

The ESPP provides eligible employees with rights during each six-month ESPP offering period to purchase shares of the Company’s Class A common stock through payroll deductions of up to a specified percentage of their eligible compensation. 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 common stock on the first or last day of the ESPP offering period. Amounts withheld from participants are reflected in accrued salaries and benefits in the condensed consolidated balance sheets until such shares are purchased. Amounts withheld from participants for the offering period ending May 31, 2024 aggregated $1,135 as of March 31, 2024. As of March 31, 2024, 6,451 shares of Class A common stock were available for issuance under the ESPP.

As of March 31, 2024, there was approximately $150 of unrecognized ESPP stock-based compensation cost expected to be recognized on a straight-line basis over the remaining term of the six-month offering period ending May 31, 2024.

At March 31, 2024 and 2023, there were two ESPP offering periods open that end May 31, 2024 and 2023, 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 March 31, 2024 and 2023 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
	5/31/2024			5/31/2023
Fair market value of common stock	$	27.82		$	17.21
Volatility		36.6	%		46.4	%
Expected term (years)		0.5			0.5
Expected dividend yield		-	%		-	%
Risk-free interest rate		5.3	%		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 three months ended March 31,
	2024		2023

	(unaudited)
Stock-based compensation expense:
Stock options	$	2,606	$	2,171
RSUs		13,003		8,345
RSAs		490		727
ESPP		225		191
Total stock-based compensation expense	$	16,324	$	11,434

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


	For the three months ended March 31,
	2024		2023

	(unaudited)
Stock-based compensation expense:
Cost of revenues, software subscriptions	$	1,590	$	996
Cost of revenues, services		1,006		836
Research and development		3,373		2,234
Selling and marketing		4,222		2,898
General and administrative		6,133		4,470
Total stock-based compensation expense	$	16,324	$	11,434

- 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

STOCK-BASED AWARD PLANS - Stock based compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Allocation of costs
Compensation expense	$ 16,324	$ 11,434
Employee Stock Option
Allocation of costs
Compensation expense	2,606	2,171
Restricted Stock Units
Allocation of costs
Compensation expense	13,003	8,345
Restricted Stock Awards
Allocation of costs
Compensation expense	490	727
ESPP
Allocation of costs
Compensation expense	$ 225	$ 191

STOCK-BASED AWARD PLANS - ESPP - Option-pricing model key input assumptions (Details) - Initial Public Offering - ESPP - $ / shares	1 Months Ended
	May 31, 2024	May 31, 2023
Fair Value Assumptions and Methodology
Fair market value of common stock	$ 27.82	$ 17.21
Volatility	36.60%	46.40%
Expected term (in years)	6 months	6 months
Risk-free interest rate	5.30%	4.70%

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property and equipment
Property and equipment	$ 275,140	$ 263,648
Less accumulated depreciation	(174,546)	(162,914)
Property and equipment, net	100,594	100,734
Leasehold improvements
Property and equipment
Property and equipment	20,658	20,662
Equipment
Property and equipment
Property and equipment	20,239	22,012
Computer software purchased
Property and equipment
Property and equipment	2,388	2,690
Internal-use software
Property and equipment
Property and equipment	216,181	181,732
Less accumulated depreciation	(134,073)	(121,646)
Property and equipment, net	90,114	88,969
Cloud-Based Customer Solutions
Property and equipment
Property and equipment	157,931	142,302
Internal Systems and Tools
Property and equipment
Property and equipment	58,250	39,430
Furniture and fixtures
Property and equipment
Property and equipment	7,668	7,669
In-process internal-use software
Property and equipment
Property and equipment	$ 8,006	$ 28,883

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2024

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

3. 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 March 31, 2024 (unaudited)	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	$	42,763	$	42,763		—		—
Commercial Paper		6,158		—		6,158		—
U.S. Treasury Securities		4,430		—		4,430		—
Tellutax Contingent Consideration		4,100		—		—		4,100
Foreign Currency Forward Contracts		677		—		677		—

	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 high quality, short-term money market instruments, which are issued and payable in U.S. dollars (“Money Market Funds”) and included in cash and cash equivalents on the condensed 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. The Company has investments in bank and corporate issued commercial paper (“Commercial Paper”) and U.S. treasury securities (“U.S. Treasury Securities”). The Company believes that Level 2 designation is appropriate for Commercial Paper and U.S. Treasury Securities 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.

In connection with the January 2021 Tellutax LLC (“Tellutax”) acquisition, the sellers are entitled to contingent consideration if sales targets are met during a period of time following the acquisition (the “Tellutax Contingent Consideration”).

The Tellutax Contingent Consideration is based on three potential earn-out payments determined by periodic revenue achievements over a thirty-month period. Such estimate represents a recurring fair value measurement with significant unobservable inputs, which management considers 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 is estimated using a Monte Carlo Simulation to compute the expected cash flows from the payments specified in the purchase agreement. Such payments have no maximum limit, but if certain targets are not met, there will be no payment for the applicable measurement period.

A fair value adjustment of $(800) was recorded in other operating expense (income), net for the three months ended March 31, 2024. A fair value adjustment of $200 was recorded in other operating expense (income), net for the three months ended March 31, 2023. At March 31, 2024, the Tellutax Contingent Consideration of $4,100 is included in purchase commitment and contingent consideration liabilities, current in the condensed consolidated balance sheets. 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 condensed consolidated balance sheets.

Tellutax Contingent Consideration fair value as of March 31, 2024 and December 31, 2023 and unobservable inputs used for the Monte Carlo Simulation valuation were as follows:


	March 31, 2024 (unaudited)
Liability	Fair Value		Valuation Technique	Unobservable Inputs
Tellutax Contingent Consideration	$	4,100	Monte Carlo Simulation	Revenue volatility	60.0	%
				Revenue discount rate	20.7	%
				Term (in years)	1.1

	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

Changes in the fair value of Tellutax Contingent Consideration during the three months ended March 31, 2024 were as follows:


	Tellutax
	Contingent
	Consideration
	(unaudited)
Balance, January 1, 2024	$	4,900
Fair value adjustments		(800)
Balance, March 31, 2024	$	4,100

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 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.

The Company has a contractual commitment to acquire the remaining equity interest from the original Systax Quotaholders incrementally through 2024. Future purchase commitment payments for these incremental acquisition amounts are based on a multiple of Systax revenue and earnings before interest, depreciation, amortization, and income taxes (“EBITDA”) performance at the end of 2023 and 2022, whereby the Company will have full ownership after the final transaction in 2024. Management determined these future 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 will fluctuate as a result of changes in foreign currency exchange rates and is reflected in purchase commitment and contingent consideration liabilities in the condensed consolidated balance sheets, with such changes in exchange rates being reflected in other comprehensive loss or income in the condensed consolidated statements of comprehensive income (loss). Adjustments to the settlement date value that arise as a result of remeasurement at future balance sheet dates will be recorded as interest expense related to financing costs in the condensed consolidated statements of comprehensive income (loss) in the period the change is identified. No such adjustments have been recorded for the three months ended March 31, 2024 or 2023.

The remaining Purchase Commitment Liability at March 31, 2024 was $9,290, and is included in purchase commitment and contingent consideration liabilities, current, in the condensed consolidated balance sheet. The Purchase Commitment Liability included in purchase commitment and contingent consideration liabilities, current in the condensed consolidated balance sheet on December 31, 2023 was $9,601.

The carrying amounts of the Purchase Commitment Liability discussed above approximated their respective fair values at such dates and are considered Level 3 non-recurring fair value measurements.

Derivative Instruments

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

The Company entered into a series of foreign currency forward contracts to reduce our exposure to adverse fluctuations in the Brazilian Real associated with a portion of the Purchase Commitment Liability. Such forward contracts have not been designated as a hedge, do not qualify for hedge accounting and are not material to our condensed consolidated financial statements. These forward contacts are remeasured at fair value on a recurring basis and are included in other assets in our condensed consolidated balance sheets with changes in their estimated fair value recognized as interest expense in our condensed consolidated statements of comprehensive income (loss). Our fair value determinations are based on foreign currency exchange rates in active markets, which are considered to be Level 2 measurements within the Fair Value Hierarchy.

- 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 + Details

PROPERTY AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2024

PROPERTY AND EQUIPMENT

Schedule of major components of property and equipment


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Leasehold improvements	$	20,658	$	20,662
Equipment		20,239		22,012
Computer software purchased		2,388		2,690
Internal-use software developed:
Cloud-based customer solutions		157,931		142,302
Internal systems and tools		58,250		39,430
Furniture and fixtures		7,668		7,669
In-process internal-use software		8,006		28,883
Property and equipment		275,140		263,648
Less accumulated depreciation and amortization		(174,546)		(162,914)
Property and equipment, net	$	100,594	$	100,734

Schedule of major components of internal-use software


	As of March 31,		As of December 31,
	2024		2023
	(unaudited)
Internal-use software developed	$	216,181	$	181,732
Less accumulated depreciation		(134,073)		(121,646)
Internal-use software developed, net of accumulated depreciation		82,108		60,086
In-process internal-use software		8,006		28,883
Internal-use software developed, net	$	90,114	$	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 three months ended March 31,
	2024		2023

	(unaudited)
Cloud-based customer solutions	$	9,687	$	6,182
Internal systems and tools		4,762		3,594
Total	$	14,449	$	9,776

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 03, 2024
Document Information:
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001806837
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A
Document Information:
Entity Common Stock, Shares Outstanding		64,952,704
Class B
Document Information:
Entity Common Stock, Shares Outstanding		90,161,000

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Amortization of acquired intangible assets
Amortization	$ 656	$ 824
Cost of Revenues
Amortization of acquired intangible assets
Amortization	61	58
Selling and marketing
Amortization of acquired intangible assets
Amortization	$ 595	$ 766
Other intangible assets
Other intangible assets
Weighted average amortization period (years)	3 years 6 months		3 years 6 months
Gross Value	$ 10,830		$ 10,960
Accumulated amortization	(9,115)		(8,564)
Carrying Value	$ 1,715		$ 2,396

DEBT - Credit Agreement (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Line of Credit
Debt
Line of credit, capacity	$ 200,000
New Term Loan
Debt
Principal amount	$ 50,000

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482900/835-30-50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69B

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69C
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69C

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69E
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69E

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69F
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69F

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net Income (Loss)	$ 2,684	$ (18,132)
Class A
Numerator:
Common stock as a percentage of total shares outstanding, basic	39.92%	33.49%
Net income (loss) attributable to stockholders, basic	$ 1,071	$ (6,072)
Common stock as a percentage of total shares outstanding, diluted	42.30%	33.49%
Net income (loss) attributable to stockholders, diluted	$ 1,135	$ (6,072)
Denominator:
Weighted average common stock, basic (in shares)	61,560,000	50,456,000
Dilutive effect of common stock equivalents	6,361,000
Weighted average common stock, diluted (in shares)	67,921,000	50,456,000
Net income (loss) per share, basic (in dollars per share)	$ 0.02	$ (0.12)
Net income (loss) per share, diluted (in dollars per share)	$ 0.02	$ (0.12)
Class A \| Amended Options
Denominator:
Anti-dilutive shares		8,335
Class A \| Out-of-the-money options
Denominator:
Anti-dilutive shares		705
Class A \| Restricted Stock Awards
Denominator:
Anti-dilutive shares		235
Class A \| Restricted Stock Units
Denominator:
Anti-dilutive shares		3,141
Class A \| ESPP
Denominator:
Anti-dilutive shares		45
Class B
Numerator:
Common stock as a percentage of total shares outstanding, basic	60.08%	66.51%
Net income (loss) attributable to stockholders, basic	$ 1,613	$ (12,060)
Common stock as a percentage of total shares outstanding, diluted	57.70%	66.51%
Net income (loss) attributable to stockholders, diluted	$ 1,549	$ (12,060)
Denominator:
Weighted average common stock, basic (in shares)	92,661,000	100,221,000
Weighted average common stock, diluted (in shares)	92,661,000	100,221,000
Net income (loss) per share, basic (in dollars per share)	$ 0.02	$ (0.12)
Net income (loss) per share, diluted (in dollars per share)	$ 0.02	$ (0.12)

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Goodwill.	$ 253,966	$ 257,842
Goodwill and other intangible assets	255,681	260,238
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	$ 1,715	$ 2,396

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

PROPERTY AND EQUIPMENT - Major components of internal-use software (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property and equipment
Property and equipment, gross	$ 275,140	$ 263,648
Less accumulated depreciation	(174,546)	(162,914)
Property and equipment	100,594	100,734
Internal-use software
Property and equipment
Property and equipment, gross	216,181	181,732
Less accumulated depreciation	(134,073)	(121,646)
Internal-use software developed, net of accumulated depreciation	82,108	60,086
Property and equipment	90,114	88,969
In-process internal-use software
Property and equipment
Property and equipment, gross	$ 8,006	$ 28,883

REVENUE RECOGNITION - Accounts receivable, net (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
REVENUE RECOGNITION
Allowance for accounts receivable	$ 20,241	$ 16,272	$ 10,641	$ 9,554
Allowance for credit loss
Balance, beginning of period	141,752	102,885
Balance, end of period	133,149	141,752
Increase (decrease), net	$ (8,603)	$ 38,867

DEBT - Indebtness (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt
Current portion of long-term debt	$ 2,500	$ 2,500
Deferred financing costs	(292)	(316)
Total debt, net of current portion	43,458	44,059
Total Debt	45,958	46,559
Term Loan
Debt
Current portion of long-term debt	2,500	2,500
Debt, net of current portion	$ 43,750	$ 44,375

- 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, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 56,134	$ 68,175
Funds held for customers	36,546	20,976
Accounts receivable, net of allowance of $20,241 and $16,272, respectively	133,149	141,752
Prepaid expenses and other current assets	31,906	26,173
Investment securities available-for-sale, at fair value (amortized cost of $9,123 and $9,550, respectively)	9,101	9,545
Total current assets	266,836	266,621
Property and equipment, net of accumulated depreciation	100,594	100,734
Capitalized software, net of accumulated amortization	38,532	38,771
Goodwill and other intangible assets	255,681	260,238
Deferred commissions	21,301	21,237
Deferred income tax asset	44,311	41,708
Operating lease right-of-use assets	13,773	14,605
Other assets	14,774	16,013
Total assets	755,802	759,927
Current liabilities:
Current portion of long-term debt	2,500	2,500
Accounts payable	22,431	23,596
Accrued expenses	36,754	44,735
Customer funds obligations	33,670	17,731
Accrued salaries and benefits	18,659	12,277
Accrued variable compensation	14,562	34,105
Deferred revenue, current	296,845	290,143
Current portion of operating lease liabilities	3,633	3,717
Current portion of finance lease liabilities	60	74
Purchase commitment and contingent consideration liabilities, current	13,390	11,901
Total current liabilities	442,504	440,779
Deferred revenue, net of current portion	4,146	2,577
Debt, net of current portion	43,458	44,059
Operating lease liabilities, net of current portion	15,523	16,567
Finance lease liabilities, net of current portion	41	51
Purchase commitment and contingent consideration liabilities, net of current portion		2,600
Deferred other liabilities		313
Total liabilities	505,672	506,946
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred shares, $0.001 par value, 30,000 shares authorized; no shares issued and outstanding
Additional paid in capital	273,647	275,155
Retained Earnings (Accumulated deficit)	2,098	(586)
Accumulated other comprehensive loss	(25,770)	(21,742)
Total stockholders' equity	250,130	252,981
Total liabilities and stockholders' equity	755,802	759,927
Class A
Stockholders' equity:
Common stock	62	61
Class B
Stockholders' equity:
Common stock	$ 93	$ 93