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Segment Information | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Segment Information | Segment Information Our Chief Executive Officer, as the Chief Operating Decision Maker, or CODM, organizes our company, manages resource allocations, and measures performance on the basis of one operating segment on a consolidated basis. The accounting policies of our operating segment are the same as those described in Note 2, Summary of Significant Accounting Policies. The CODM assesses performance for the segment and decides how to allocate resources based on net income (loss) that also is reported on the accompanying condensed consolidated statements of operations as consolidated net income (loss). The measure of segment assets is reported on the accompanying condensed consolidated balance sheets as total assets. The CODM uses net income (loss) to evaluate income generated from segment assets in making key operating and segment resource allocation decisions, such as investments in new product development. Net income (loss) is also used to monitor budget versus actual results. The Company has one reportable segment which provides an online platform for business formation in the United States, or U.S., and, as described in Note 2, Summary of Significant Accounting Policies, generates revenue from customized legal document services and subscriptions offered to our customers. Revenue outside of the U.S., based on the location of the customer, represented less than 1% of our unaudited consolidated revenue for the three months ended March 31, 2025 and 2024. Our property and equipment and ROU assets located outside of the U.S. were immaterial as of March 31, 2025 and 2024. The following table summarizes financial information by reportable segment regularly provided to the CODM (in thousands):
| Three Months Ended March 31,
| 2025 |  | 2024
Transaction revenue | $ | 66,853 |  |  | $ | 66,317 |
Subscription revenue | 116,257 |  |  | 107,897 |
Total revenue | 183,110 |  |  | 174,214 |
Less: |  |  |
Filings fees | 25,219 |  |  | 24,813 |
Other cost of revenue, excluding depreciation, amortization and stock-based compensation | 34,966 |  |  | 37,511 |
Customer acquisition marketing | 44,215 |  |  | 40,563 |
Other sales and marketing, excluding depreciation, amortization and stock-based compensation | 11,681 |  |  | 10,812 |
Technology and development, excluding depreciation, amortization and stock-based compensation | 15,078 |  |  | 16,777 |
General and administrative, excluding depreciation, amortization, stock-based compensation, and restructuring | 16,482 |  |  | 15,836 |
Stock-based compensation | 29,756 |  |  | 14,856 |
Depreciation and amortization | 10,406 |  |  | 7,670 |
Interest income | (1,483) |  |  | (2,887) |
Interest expense | 182 |  |  | 61 |
Restructuring(1) | 678 |  |  | 321 |
Other segment items(2) | (347) |  |  | (93) |
Provision for income taxes | 5,487 |  |  | 3,230 |
Gain on sale of assets held for sale | (14,337) |  |  | — |
Segment net income | 5,127 |  |  | 4,744 |
Reconciliation of profit or loss |  |  |
Adjustments and reconciling items | $ | — |  |  | $ | — |
Consolidated net income | $ | 5,127 |  |  | $ | 4,744 |
(1) For 2025 and 2024, restructuring costs related to the reduction of our U.S. headcount. (2) Other segment items included in segment net income primarily consist of foreign currency gains or losses related to our intercompany loans which were denominated in British Pound Sterling, or GBP, and included in other income, net on the consolidated statements of operations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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