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Segment Reporting and Significant Concentration | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting and Significant Concentration | 3. Segment Reporting and Significant Concentration Segment Information. Our CODM is our President and Chief Executive Officer. We have evaluated how our CODM has organized our Company for purposes of making operating decisions, preparing budgets and forecasts, setting targets, allocating resources, and assessing performance. Our CODM manages all business activities on a consolidated basis, and as a result, we have concluded that as of December 31, 2024, there is one reportable segment. Our one segment provides solutions and services that help companies around the world monetize and digitally enable the customer experience by accurately capturing, managing, generating, and optimizing the interactions and revenue associated with their customers. We generate a substantial percentage of our revenue from customers utilizing Advanced Convergent Platform (“ACP”), a private SaaS platform, and related solutions (e.g., service technician management, analytics, electronic bill presentment, etc.) within the North American communications markets. In addition, a smaller portion of our revenue is generated from our public SaaS revenue management and payments platforms, serving customers globally. In addition, we license certain solutions (e.g., mediation, partner management, rating, and charging) and provide our professional services to implement, configure, and maintain these solutions. These solutions are sometimes provided under a managed service arrangement, where we assume long-term responsibility for delivering and maintaining our solutions and related operations under a defined scope and specified service levels. The accounting policies of our one segment are the same as those described in the summary of significant accounting policies (see Note 2). As our one segment is managed on a consolidated basis, our measure of segment profit or loss is consolidated net income. Our CODM uses consolidated net income to assess the performance of our one segment and decide how and where to allocate resources and reinvest profits into the business in areas such as R&D, business and/or asset acquisitions, investments in market share expansion with our existing and potential new customers, talent, technology, the repurchase of our common stock, and/or the payment of dividends. Net income, and components of net income, are used to monitor actual performance and are compared to budgeted and forecasted results to assess the performance of our one segment, set targets, and establish management’s incentive compensation. The measure of consolidated segment assets is reported on our Balance Sheets as total assets. We do not have intra-entity sales or transfers. We regularly provide our CODM a reporting package that shows our results by functional expenses, similar to our Income Statements. However, for purposes of this reporting package, depreciation is included in these functional expense categories, rather than broken out separately. Additionally, certain expenses such as restructuring and reorganization charges, executive transition costs, and acquisition-related charges, along with non-cash charges such as stock-based compensation and amortization of acquired intangibles, are excluded. The following table provides the significant expenses that are regularly provided to our CODM for our one segment, the required disclosable amounts that are included in consolidated net income, and a reconciliation to consolidated net income for the following years:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Revenue |  | $ | 1,197,248 |  |  | $ | 1,169,258 |  |  | $ | 1,089,752 |
Less: |  |  |  |  |  |  |  |  |
Cost of revenue: |  |  |  |  |  |  |  |  |
Transaction fees |  |  | 97,857 |  |  |  | 87,430 |  |  |  | 75,679 |
All other (1) |  |  | 513,237 |  |  |  | 530,109 |  |  |  | 488,934 |
Total cost of revenue |  |  | 611,094 |  |  |  | 617,539 |  |  |  | 564,613 |
Research and development (1) |  |  | 155,638 |  |  |  | 142,962 |  |  |  | 137,102 |
Selling and marketing (1) |  |  | 114,323 |  |  |  | 114,207 |  |  |  | 111,693 |
General and administrative (1) |  |  | 116,761 |  |  |  | 108,823 |  |  |  | 107,513 |
Restructuring and reorganization charges (1) |  |  | 13,323 |  |  |  | 16,336 |  |  |  | 46,308 |
Stock-based compensation |  |  | 34,385 |  |  |  | 29,480 |  |  |  | 27,945 |
Other segment items (2) |  |  | 8,983 |  |  |  | 16,384 |  |  |  | 17,365 |
Interest expense |  |  | 30,469 |  |  |  | 31,176 |  |  |  | 16,432 |
Income tax provision |  |  | 25,420 |  |  |  | 26,105 |  |  |  | 16,721 |
Segment net income |  |  | 86,852 |  |  |  | 66,246 |  |  |  | 44,060 |
Reconciliation of profit or loss: |  |  |  |  |  |  |  |  |
Adjustments and reconciling items |  |  | - |  |  |  | - |  |  |  | - |
Consolidated net income |  | $ | 86,852 |  |  | $ | 66,246 |  |  | $ | 44,060 |
(1) These functional expense lines include depreciation expense, which is presented separately on our Income Statements. (2) Other segment items include acquisition-related costs (both transaction-related and amortization of acquired intangible assets), executive transition costs, interest income, loss on derivative liability upon debt conversion, and foreign currency gains/losses. Depreciation expense and interest income are separately disclosed on our Income Statements. Amortization expense is separately disclosed on our Statements of Cash Flows and is discussed in Note 4. Geographic Concentration. We use the location of the customer as the basis of attributing revenue to geographic location. Revenue from countries exceeding 10% of our total revenue for the following years were as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
United States |  | $ | 978,308 |  |  | $ | 935,391 |  |  | $ | 869,486 |
All other |  |  | 218,940 |  |  |  | 233,867 |  |  |  | 220,266 |
Total revenue |  | $ | 1,197,248 |  |  | $ | 1,169,258 |  |  | $ | 1,089,752 |
Long-lived assets (principally, property and equipment, operating lease right-of-use assets, software, acquired customer contracts, and customer contract costs) classified by the location of the controlling statutory company for countries exceeding 10% of the total long lived asset balance for the following years were as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
United States |  | $ | 172,412 |  |  | $ | 175,997 |  |  | $ | 210,656 |
All other |  |  | 28,462 |  |  |  | 28,355 |  |  |  | 33,744 |
Total long-lived assets |  | $ | 200,874 |  |  | $ | 204,352 |  |  | $ | 244,400 |
Customer Concentration. A large percentage of our revenue is generated from a limited number of customers in the global communications industry, with our three largest customers being Charter Communications, Inc. (“Charter”), Comcast Corporation (“Comcast”), and DISH Network L.L.C. Revenue from customers exceeding 10% of our total revenue for the following years were as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Charter |  |  | 20 | % |  |  | 21 | % |  |  | 20 | %
Comcast |  |  | 19 | % |  |  | 18 | % |  |  | 20 | %
As of December 31, 2024 and 2023, the percentage of net billed accounts receivable balances attributable to these customers were as follows:
|  | As of December 31, |
|  | 2024 |  |  | 2023 |
Charter |  |  | 20 | % |  |  | 23 | %
Comcast |  |  | 17 | % |  |  | 17 | %
We expect to continue to generate a large percentage of our future revenue from our significant customers. There are inherent risks whenever a large percentage of total revenue is concentrated with a limited number of customers. Should a significant customer: (i) terminate or fail to renew their contracts with us, in whole or in part for any reason; (ii) significantly reduce the number of customer accounts processed on our solutions, the price paid for our services, or the scope of services that we provide; or (iii) experience financial or operating difficulties, it could have a material adverse effect on our financial position and results 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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