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Summary of significant accounting policies | 9 Months Ended
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Sep. 30, 2025
Accounting Policies [Abstract] |
Summary of significant accounting policies | Summary of significant accounting policies The Company’s significant accounting policies are discussed in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to these policies during the three and nine months ended September 30, 2025. The following describes the impact of certain policies. Revenue recognition The Company applies ASC 606 and follows the five-step model to determine the appropriate amount of revenue to be recognized. Disaggregation of Revenue The Company separates revenue into subscription and non-subscription categories to disaggregate the revenue that is term-based and renewable from the revenue that is one-time in nature. Revenue from subscription and non-subscription contractual arrangements were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands)
SaaS subscription and support and maintenance | $ | 169,082 |  |  | $ | 151,485 |  |  | $ | 491,273 |  |  | $ | 439,992 |
On-premise subscription | 10,528 |  |  | 4,585 |  |  | 25,324 |  |  | 13,859 |
Subscription revenue | 179,610 |  |  | 156,070 |  |  | 516,597 |  |  | 453,851 |
Professional services | 3,884 |  |  | 3,192 |  |  | 11,016 |  |  | 10,395 |
Perpetual licenses | — |  |  | 24 |  |  | 3 |  |  | 179 |
Non-subscription revenue | 3,884 |  |  | 3,216 |  |  | 11,019 |  |  | 10,574 |
Total revenue | $ | 183,494 |  |  | $ | 159,286 |  |  | $ | 527,616 |  |  | $ | 464,425 |
Contract Balances Contract liabilities consist of customer billings in advance of revenue being recognized. The Company invoices its customers for subscription, support and maintenance, and services in advance. Changes in contract liabilities, including revenue earned during the period from the beginning contract liability balance and new deferrals of revenue during the period, were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands)
Balance, beginning of the period | $ | 408,190 |  |  | $ | 370,206 |  |  | $ | 385,709 |  |  | $ | 373,432 |
Acquisitions | — |  |  | — |  |  | 11,685 |  |  | — |
Revenue earned | (136,221) |  |  | (126,921) |  |  | (305,566) |  |  | (287,082) |
Deferral of revenue | 174,719 |  |  | 140,159 |  |  | 354,860 |  |  | 297,094 |
Other (1) | (6,194) |  |  | (5,227) |  |  | (6,194) |  |  | (5,227) |
Balance, end of the period | $ | 440,494 |  |  | $ | 378,217 |  |  | $ | 440,494 |  |  | $ | 378,217 |
(1) Includes contract assets netted against contract liabilities on a contract-by-contract basis. Remaining Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts to be invoiced. As of September 30, 2025, the Company had $653.0 million of remaining performance obligations, with 68% expected to be recognized as revenue over the succeeding 12 months, and the remainder generally expected to be recognized over the three years thereafter. Deferred Contract Costs Sales commissions, as well as associated payroll taxes and retirement plan contributions (together, “contract costs”), that are incremental to the acquisition of customer contracts are capitalized using a portfolio approach as deferred contract costs in the condensed consolidated balance sheets when the period of benefit is determined to be greater than one year. Total amortization of contract costs was $7.8 million and $6.9 million for the three months ended September 30, 2025 and 2024, respectively, and $23.1 million and $19.8 million for the nine months ended September 30, 2025 and 2024, respectively. The Company periodically reviews these deferred contract costs to determine whether events or changes in circumstances have occurred that could affect the period of benefit of these deferred contract costs. There were no impairment losses recorded during the three and nine months ended September 30, 2025 or 2024. Cloud computing arrangements Capitalized costs associated with the implementation of CCAs were as follows:
Balance Sheet Classification |  | September 30, 2025 |  | December 31, 2024
|  | (in thousands)
Other current assets |  | $ | 6,474 |  |  | $ | 6,418 |
Other assets |  | 19,329 |  |  | 19,216 |
Capitalized cloud computing implementation costs, gross |  | 25,803 |  |  | 25,634 |
Less: accumulated amortization |  | (7,486) |  |  | (2,669) |
Capitalized cloud computing implementation costs, net |  | $ | 18,317 |  |  | $ | 22,965 |
Amortization expense related to capitalized CCA implementation costs was $1.6 million and $4.8 million for the three and nine months ended September 30, 2025, respectively, and $1.1 million for both the three and nine months ended September 30, 2024. Stock repurchases In May 2024, funds affiliated with Vista sold 8,956,522 shares of our common stock in an underwritten secondary offering. The Company did not receive any proceeds from the sale of common stock by Vista. In connection with this offering, we repurchased 2,000,000 shares of our common stock that were subject to the offering from the underwriters at the per-share price paid by the underwriters, or $17.52 per share, for an aggregate purchase price of $35.4 million. The Company funded the repurchase with existing cash on hand. These shares were purchased on May 16, 2024 and were subsequently retired. The terms and conditions of the stock repurchase were reviewed and approved by each of the audit committee members of our Board and our full Board. Strategic investments The Company’s strategic investments consist of non-marketable equity and debt instruments in privately held companies. The investments are recorded at cost, less any impairment, and included in other assets on the condensed consolidated balance sheets. The Company periodically reviews these investments for impairment and observable price changes on a quarterly basis and adjusts the carrying value accordingly. The fair value of these investments represents a Level 3 valuation as the assumptions used in valuing these investments are not directly or indirectly observable. As of September 30, 2025 and December 31, 2024, the balance of strategic investments was $7.7 million and $5.4 million, respectively. In the second quarter of 2025, the Company recorded a $0.9 million impairment loss in other expense, net on the condensed consolidated statement of operations as the fair value of the investment was lower than the carrying value. There were no other changes in the carrying value of the Company’s strategic investments during the three and nine months ended September 30, 2025 and 2024. Recently issued accounting pronouncements not yet adopted In September 2025, the FASB issued ASU No. 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update modernizes the accounting for internal-use software costs by removing all references to software development project stages and requiring entities to start capitalizing software costs when both of the following occur: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. The standard is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods and can be applied retrospectively, prospectively to software costs incurred after the adoption date, or on a modified prospective basis. The Company is currently evaluating the effect the standard will have on its condensed consolidated financial statements. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update provides a practical expedient to measure credit losses on accounts receivable and contract assets. The standard is effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods and should be applied prospectively. Early adoption is permitted. The Company is currently evaluating the effect the standard will have on its condensed consolidated financial statements. In December 2024, the FASB issued ASU No. 2024-04, Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments to clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The standard is effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the effect the standard will have on its condensed consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires companies to disclose additional information about certain expenses in the notes to the financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027 and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the effect the standard will have on disclosures within its condensed consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update requires companies to disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. This update also requires disclosure of disaggregated information related to income taxes paid. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis with the option to apply the guidance retrospectively. The Company is currently evaluating the effect the standard will have on disclosures within its condensed consolidated financial statements.

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483426/235-10-50-1 + Details
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