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Other Financial Statement Information | 3 Months Ended
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Mar. 31, 2025
Other Financial Information [Abstract] |
Other Financial Statement Information | Other Financial Statement Information Accounts Receivable Changes in the allowances consisted of the following (in thousands):
| Three Months Ended March 31, |  |  |
|  | 2025 |  | 2024 |  |  |  |  |
Beginning balance |  | $ | 2,121 |  |  | $ | 4,906 |  |  |  |  |  |
Add: amounts recognized as a reduction of revenue |  | 1,236 |  |  | 1,545 |  |  |  |  |  |
Add (less): allowance for credit losses recognized in general and administrative expense |  | 40 |  |  | (154) |  |  |  |  |  |
Less: write-offs, net of recoveries |  | (773) |  |  | (2,864) |  |  |  |  |  |
Ending balance |  | $ | 2,624 |  |  | $ | 3,433 |  |  |  |  |  |
The allowance recognized as a reduction of revenue primarily relates to our installment plan receivables for which we expect we will not be entitled to a portion of the transaction price based on our historical experience with similar transactions. The allowance recognized against general and administrative expense represents an allowance relating to receivables from partners that are no longer considered collectible. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands):
|  | March 31, 2025 |  | December 31, 2024
Prepaid expenses |  | $ | 11,135 |  |  | $ | 9,129 |
Deferred cost of revenue |  | 3,789 |  |  | 1,670 |
Capitalized cloud computing development costs |  | 1,557 |  |  | 1,599 |
Income tax receivable |  | 1,542 |  |  | 3,701 |
Other current assets |  | 2,414 |  |  | 1,827 |
Total prepaid expenses and other current assets |  | $ | 20,437 |  |  | $ | 17,926 |
Goodwill The following table presents the changes in the carrying amount of goodwill (in thousands):
| Amount
Balance as of December 31, 2024 | $ | 63,318 |
Acquisition(1) | 77,813 |
Balance as of March 31, 2025 | $ | 141,131 |
(1) Amounts relate to the acquisition of Formation Nation, Inc., or Formation Nation. Refer to Note 5. Acquisition to our condensed consolidated financial statements. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands):
|  | March 31, 2025 |  | December 31, 2024
Accrued payroll and related expenses |  | $ | 19,652 |  |  | $ | 27,518 |
Accrued vendor payables |  | 22,719 |  |  | 15,895 |
Accrued advertising |  | 692 |  |  | 1,636 |
Sales allowances |  | 3,079 |  |  | 3,086 |
Accrued sales, use and business taxes |  | 9,107 |  |  | 6,984 |
Deferred consideration relating to business acquired |  | 12,957 |  |  | — |
Other |  | 4,241 |  |  | 2,809 |
Total accrued expenses and other current liabilities |  | $ | 72,447 |  |  | $ | 57,928 |
Deferred revenue Deferred revenue as of March 31, 2025 and December 31, 2024 was $211.4 million and $175.0 million, respectively. Revenue recognized in the three months ended March 31, 2025 and 2024 that was included in deferred revenue as of December 31, 2024 and 2023 was $85.4 million and $84.1 million, respectively. We have omitted disclosure on the transaction price allocated to remaining performance obligations and the estimated timing of revenue recognition, as our contracts with customers that have a duration of more than one year are immaterial. Depreciation and Amortization Depreciation and amortization expense of our property and equipment, including capitalized internal-use software, and intangible assets consisted of the following (in thousands):
| Three Months Ended March 31,
|  | 2025 |  | 2024
Cost of revenue |  | $ | 5,115 |  |  | $ | 4,467 |
Sales and marketing |  | 1,715 |  |  | 799 |
Technology and development |  | 2,220 |  |  | 1,477 |
General and administrative |  | 1,356 |  |  | 927 |
Total depreciation and amortization expense |  | $ | 10,406 |  |  | $ | 7,670 |

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