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Segment Reporting and Customer Concentration
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting and Customer Concentration

3. SEGMENT REPORTING AND CUSTOMER CONCENTRATION

Segment Information. Our Chief Operating Decision Maker ("CODM") is our President and Chief Executive Officer. We have evaluated how our CODM has organized the 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 September 30, 2025, there is one reportable segment.

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 research and development (“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 expense, 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 quarters and nine months ended September 30, 2025 and 2024:

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

 

September 30, 2025

 

 

September 30, 2024

 

 

September 30, 2025

 

 

September 30, 2024

 

 

Revenue

 

$

303,615

 

 

$

295,143

 

 

$

900,196

 

 

$

880,596

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction fees

 

 

24,333

 

 

 

22,524

 

 

 

78,100

 

 

 

71,793

 

 

All other (1)

 

 

131,384

 

 

 

125,319

 

 

 

379,243

 

 

 

386,564

 

 

Total cost of revenue

 

 

155,717

 

 

 

147,843

 

 

 

457,343

 

 

 

458,357

 

 

Research and development (1)

 

 

39,631

 

 

 

40,498

 

 

 

119,069

 

 

 

114,421

 

 

Selling and marketing (1)

 

 

26,223

 

 

 

28,037

 

 

 

80,098

 

 

 

85,625

 

 

General and administrative (1)

 

 

27,546

 

 

 

28,690

 

 

 

83,241

 

 

 

81,109

 

 

Restructuring and reorganization charges (1)

 

 

5,591

 

 

 

2,943

 

 

 

17,547

 

 

 

12,040

 

 

Stock-based compensation

 

 

8,818

 

 

 

8,759

 

 

 

26,292

 

 

 

25,821

 

 

Other segment items (2)

 

 

6,382

 

 

 

6,816

 

 

 

26,881

 

 

 

8,998

 

 

Interest expense

 

 

7,367

 

 

 

7,778

 

 

 

21,964

 

 

 

22,982

 

 

Income tax provision

 

 

5,857

 

 

 

4,691

 

 

 

18,881

 

 

 

18,859

 

 

Segment net income

 

 

20,483

 

 

 

19,088

 

 

 

48,880

 

 

 

52,384

 

 

Reconciliation of profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Consolidated net income

 

$

20,483

 

 

$

19,088

 

 

$

48,880

 

 

$

52,384

 

 
(1)
These functional expense lines include depreciation expense, which is presented separately on our Income Statements.
(2)
Other segment items include acquisition-related costs (transaction-related costs, earn-out compensation, and amortization of acquired intangible assets), executive transition costs, interest income, loss on extinguishment of debt, 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.