XML 35 R24.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Schedule of Revenue Disaggregated by Revenue Type, Geographic Region and Customer

The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical.

Revenue by type for 2023, 2022, and 2021 was as follows (in thousands):


		2023				2022				2021
Revenue:
SaaS and related solutions		$	1,024,572			$	956,995			$	926,290
Software and services			98,078				87,247				72,818
Maintenance			46,608				45,510				47,379
Total revenue		$	1,169,258			$	1,089,752			$	1,046,487

We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for 2023, 2022, and 2021, as a percentage of our total revenue, was as follows:


		2023				2022				2021
Americas (principally the U.S.)			86	%			85	%			85	%
Europe, Middle East, and Africa (principally Europe)			10	%			11	%			11	%
Asia Pacific			4	%			4	%			4	%
Total revenue			100	%			100	%			100	%

We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in markets including retail, financial services, healthcare, insurance, and government entities. Revenue by customer vertical for 2023, 2022, and 2021, as a percentage of our total revenue, was as follows:


		2023				2022				2021
Broadband/Cable/Satellite			52	%			54	%			57	%
Telecommunications			20	%			20	%			19	%
Other			28	%			26	%			24	%
Total revenue			100	%			100	%			100	%

Rollforward of Unbilled Accounts Receivable

The following table rolls forward our unbilled accounts receivable from January 1, 2022 to December 31, 2023 (in thousands):


		Unbilled Receivables
Beginning Balance, January 1, 2022		$	35,802
Recognized during the period			285,562
Reclassified to receivables			(265,707	)
Other			(2,827	)
Ending Balance, December 31, 2022			52,830
Recognized during the period			287,844
Reclassified to receivables			(258,792	)
Other			281
Ending Balance, December 31, 2023		$	82,163

Rollforward of Deferred Revenue

The following table rolls forward our deferred revenue from January 1, 2022 to December 31, 2023 (in thousands):



		Deferred Revenue
Beginning Balance, January 1, 2022		$	(73,347	)
Revenue recognized that was included in deferred revenue at the beginning of the period			53,947
Consideration received in advance of services performed net of revenue recognized in the current period			(51,432	)
Other			2,808
Ending Balance, December 31, 2022			(68,024	)
Revenue recognized that was included in deferred revenue at the beginning of the period			45,699
Consideration received in advance of services performed net of revenue recognized in the current period			(55,920	)
Other			599
Ending Balance, December 31, 2023		$	(77,646	)

Fair Value Measurements

The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands):


		December 31, 2023												December 31, 2022
		Level 1				Level 2				Total				Level 1				Level 2				Total
Cash equivalents:
Money market funds		$	5,484			$	-			$	5,484			$	5,318			$	-			$	5,318
Short-term investments:
Asset-backed securities			-				-				-				-				71				71
Total		$	5,484			$	-			$	5,484			$	5,318			$	71			$	5,389

Carrying Value and Estimated Fair Value of Debt

We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands):


		December 31, 2023								December 31, 2022
		Carrying Value				Fair Value				Carrying Value				Fair Value
2023 Convertible Notes (par value)		$	425,000			$	428,506			$	-			$	-
2021 Credit Agreement (carrying value including current maturities):
Term Loan			133,125				133,125				140,625				140,625
Revolver			-				-				275,000				275,000

The fair value of our convertible notes was estimated based upon quoted market prices or recent sales activity, while the fair value of our credit agreement was estimated using a discounted cash flow methodology, both of which are considered Level 2 inputs

Schedule of Settlement and Merchant Reserve Assets and Liabilities

The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands):


		December 31, 2023								December 31, 2022
		Assets				Liabilities				Assets				Liabilities
Settlement assets/liabilities		$	260,712			$	259,825			$	219,368			$	218,525
Merchant reserve assets/liabilities			13,987				13,992				19,285				19,285
Total		$	274,699			$	273,817			$	238,653			$	237,810

Allowance for Doubtful Accounts Receivable

The activity in our allowance for expected losses is as follows (in thousands):


		2023				2022				2021
Balance, beginning of year		$	5,528			$	4,250			$	3,628
Additions to expense			1,765				1,295				1,102
Write-offs			(1,767	)			(8	)			(466	)
Other			(94	)			(9	)			(14	)
Balance, end of year		$	5,432			$	5,528			$	4,250

Reconciliation of the Basic and Diluted EPS denominators

The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands):



			2023				2022				2021
Basic weighted-average common shares				29,938				31,028				31,776
Dilutive effect of restricted common stock				177				270			234
Diluted weighted-average common shares				30,115				31,298				32,010

The dilutive effect of restricted common stock is computed using the treasury stock method. The dilutive effect of the 2023 Convertible Notes is computed using the if-converted method and will only have an effect in those quarterly periods in which our average stock price exceeds the current effective conversion price.