Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | CSG SYSTEMS INTERNATIONAL, INC. | |
Entity Central Index Key | 0001005757 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2023 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CSGS | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,671,105 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-27512 | |
Entity Tax Identification Number | 47-0783182 | |
Entity Address, Address Line One | 169 Inverness Dr W | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | (303) | |
Local Phone Number | 200-2000 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 146,730 | $ 150,365 |
Short-term investments | 0 | 71 |
Total cash, cash equivalents and short-term investments | 146,730 | 150,436 |
Settlement and merchant reserve assets | 193,371 | 238,653 |
Trade accounts receivable: | ||
Billed, net of allowance of $4,731 and $5,528 | 275,161 | 274,189 |
Unbilled | 83,612 | 52,830 |
Income taxes receivable | 2,492 | 1,270 |
Other current assets | 58,701 | 48,577 |
Total current assets | 760,067 | 765,955 |
Non-current assets: | ||
Property and equipment, net of depreciation of $118,424 and $105,466 | 68,029 | 71,787 |
Operating lease right-of-use assets | 37,196 | 49,687 |
Intangible assets | 54,673 | 68,191 |
Goodwill | 302,996 | 304,036 |
Customer contract costs, net of amortization of $38,174 and $30,601 | 53,336 | 54,735 |
Deferred income taxes | 46,271 | 26,206 |
Other assets | 7,034 | 7,956 |
Total non-current assets | 569,535 | 582,598 |
Total assets | 1,329,602 | 1,348,553 |
Current liabilities: | ||
Current portion of long-term debt | 22,500 | 37,500 |
Operating lease liabilities | 16,915 | 21,012 |
Customer deposits | 33,084 | 40,472 |
Trade accounts payable | 42,623 | 47,720 |
Accrued employee compensation | 64,313 | 68,321 |
Settlement and merchant reserve liabilities | 191,637 | 237,810 |
Deferred revenue | 61,419 | 46,033 |
Income taxes payable | 2,211 | 5,455 |
Other current liabilities | 26,831 | 22,886 |
Total current liabilities | 461,533 | 527,209 |
Non-current liabilities: | ||
Long-term debt, net of unamortized discounts of $16,502 and $2,656 | 535,998 | 375,469 |
Operating lease liabilities | 37,574 | 53,207 |
Deferred revenue | 20,828 | 21,991 |
Income taxes payable | 3,243 | 3,410 |
Deferred income taxes | 128 | 117 |
Other non-current liabilities | 9,807 | 11,901 |
Total non-current liabilities | 607,578 | 466,095 |
Total liabilities | 1,069,111 | 993,304 |
Stockholders' equity: | ||
Preferred stock, par value $.01 per share; 10,000 shares authorized; zero shares issued and outstanding | 0 | 0 |
Common stock, par value $.01 per share; 100,000 shares authorized; 29,726 and 31,269 shares outstanding | 713 | 708 |
Additional paid-in capital | 483,063 | 495,189 |
Treasury stock, at cost; 40,202 and 38,210 shares | (1,125,897) | (1,018,034) |
Accumulated other comprehensive income (loss): | ||
Unrealized gain on short-term investments, net of tax | 1 | 1 |
Cumulative foreign currency translation adjustments | (60,773) | (58,830) |
Accumulated earnings | 963,384 | 936,215 |
Total stockholders' equity | 260,491 | 355,249 |
Total liabilities and stockholders' equity | 1,329,602 | 1,348,553 |
Software | ||
Non-current assets: | ||
Intangible assets | 16,741 | 22,774 |
Acquired customer contracts | ||
Non-current assets: | ||
Intangible assets | $ 37,932 | $ 45,417 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Trade accounts receivable-billed, allowance | $ 4,731 | $ 5,528 |
Property and equipment, accumulated depreciation | 118,424 | 105,466 |
Intangibles, accumulated amortization | 286,941 | 270,417 |
Customer contract costs, accumulated amortization | 38,174 | 30,601 |
Long-term debt, unamortized discounts | $ 16,502 | $ 2,656 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 29,726,000 | 31,269,000 |
Treasury stock, shares | 40,202,000 | 38,210,000 |
Software | ||
Intangibles, accumulated amortization | $ 159,451 | $ 150,337 |
Acquired customer contracts | ||
Intangibles, accumulated amortization | $ 127,490 | $ 120,080 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 286,868 | $ 273,308 | $ 871,934 | $ 799,876 |
Cost of revenue (exclusive of depreciation, shown separately below) | 152,734 | 138,462 | 458,897 | 415,014 |
Other operating expenses: | ||||
Research and development | 35,292 | 35,754 | 107,401 | 103,365 |
Selling, general and administrative | 59,097 | 59,026 | 180,930 | 173,833 |
Depreciation | 5,862 | 5,896 | 17,155 | 17,685 |
Restructuring and reorganization charges | 1,152 | 14,193 | 8,421 | 46,304 |
Total operating expenses | 254,137 | 253,331 | 772,804 | 756,201 |
Operating income | 32,731 | 19,977 | 99,130 | 43,675 |
Other income (expense): | ||||
Interest expense | (8,036) | (4,328) | (23,092) | (10,286) |
Interest and investment income, net | 1,175 | 281 | 2,516 | 537 |
Loss on derivative liability upon debt conversion | 0 | 0 | 0 | (7,456) |
Other, net | 813 | 2,790 | (3,047) | 6,044 |
Total other | (6,048) | (1,257) | (23,623) | (11,161) |
Income before income taxes | 26,683 | 18,720 | 75,507 | 32,514 |
Income tax provision | (7,989) | (6,239) | (21,931) | (8,603) |
Net income | $ 18,694 | $ 12,481 | $ 53,576 | $ 23,911 |
Weighted-average shares outstanding: | ||||
Basic | 30,097 | 30,941 | 30,381 | 31,219 |
Diluted | 30,284 | 31,159 | 30,540 | 31,487 |
Earnings per common share: | ||||
Basic | $ 0.62 | $ 0.4 | $ 1.76 | $ 0.77 |
Diluted | $ 0.62 | $ 0.4 | $ 1.75 | $ 0.76 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,694 | $ 12,481 | $ 53,576 | $ 23,911 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (6,495) | (17,919) | (1,943) | (35,101) |
Unrealized holding gain on short-term investments arising during period | 0 | 3 | 0 | 6 |
Other comprehensive loss, net of tax | (6,495) | (17,916) | (1,943) | (35,095) |
Total comprehensive income (loss), net of tax | $ 12,199 | $ (5,435) | $ 51,633 | $ (11,184) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Adjustments due to adoption of new accounting standards | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings | Accumulated Earnings Adjustments due to adoption of new accounting standards | Noncontrolling Interest |
Balance, beginning of period, shares at Dec. 31, 2021 | 32,495,000 | ||||||||
Balance, beginning of period at Dec. 31, 2021 | $ 440,244 | $ 705 | $ 488,303 | $ (930,106) | $ (38,353) | $ 916,060 | $ 3,635 | ||
Net Income (Loss) | 6,113 | ||||||||
Unrealized gain (loss) on short-term investments, net of tax | (2) | ||||||||
Foreign currency translation adjustments | (1,182) | ||||||||
Total comprehensive income (loss) | 4,929 | ||||||||
Repurchase of common stock | (23,801) | $ (1) | (7,804) | (15,996) | |||||
Repurchase of common stock, shares | (389,000) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 650 | 650 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 12,000 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 5 | (5) | |||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 476,000 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (34,000) | ||||||||
Stock-based compensation expense | 5,581 | 5,581 | |||||||
Settlement of convertible debt securities, net of tax | (4,845) | (4,845) | |||||||
Dividends | (8,586) | (8,586) | |||||||
Balance, ending of period, shares at Mar. 31, 2022 | 32,560,000 | ||||||||
Balance, ending of period at Mar. 31, 2022 | 414,172 | $ 709 | 472,078 | $ (9,802) | (946,102) | (39,537) | 923,389 | $ 9,802 | 3,635 |
Balance, beginning of period, shares at Dec. 31, 2021 | 32,495,000 | ||||||||
Balance, beginning of period at Dec. 31, 2021 | 440,244 | $ 705 | 488,303 | (930,106) | (38,353) | 916,060 | 3,635 | ||
Net Income (Loss) | 23,911 | ||||||||
Unrealized gain (loss) on short-term investments, net of tax | 6 | ||||||||
Foreign currency translation adjustments | (35,101) | ||||||||
Total comprehensive income (loss) | (11,184) | ||||||||
Balance, ending of period, shares at Sep. 30, 2022 | 31,664,000 | ||||||||
Balance, ending of period at Sep. 30, 2022 | 344,305 | $ 708 | 488,292 | (995,606) | (73,448) | 924,359 | 0 | ||
Balance, beginning of period, shares at Mar. 31, 2022 | 32,560,000 | ||||||||
Balance, beginning of period at Mar. 31, 2022 | 414,172 | $ 709 | 472,078 | $ (9,802) | (946,102) | (39,537) | 923,389 | $ 9,802 | 3,635 |
Net Income (Loss) | 5,317 | ||||||||
Unrealized gain (loss) on short-term investments, net of tax | 5 | ||||||||
Foreign currency translation adjustments | (16,000) | ||||||||
Total comprehensive income (loss) | (10,678) | ||||||||
Repurchase of common stock | (21,673) | (116) | (21,557) | ||||||
Repurchase of common stock, shares | (362,000) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 773 | 773 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 15,000 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 1 | (1) | |||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 42,000 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans | $ (1) | 1 | |||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (60,000) | ||||||||
Stock-based compensation expense | 6,536 | 6,536 | |||||||
Dividends | (8,473) | (8,473) | |||||||
Write-off of noncontrolling interest | (3,635) | (3,635) | |||||||
Balance, ending of period, shares at Jun. 30, 2022 | 32,195,000 | ||||||||
Balance, ending of period at Jun. 30, 2022 | 377,022 | $ 709 | 479,271 | (967,659) | (55,532) | 920,233 | |||
Net Income (Loss) | 12,481 | 12,481 | |||||||
Unrealized gain (loss) on short-term investments, net of tax | 3 | 3 | |||||||
Foreign currency translation adjustments | (17,919) | (17,919) | |||||||
Total comprehensive income (loss) | (5,435) | ||||||||
Repurchase of common stock | (28,382) | (435) | (27,947) | ||||||
Repurchase of common stock, shares | (495,000) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 794 | 794 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 16,000 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 13,000 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans | $ (1) | 1 | |||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (65,000) | ||||||||
Stock-based compensation expense | 8,661 | 8,661 | |||||||
Dividends | (8,355) | (8,355) | |||||||
Balance, ending of period, shares at Sep. 30, 2022 | 31,664,000 | ||||||||
Balance, ending of period at Sep. 30, 2022 | $ 344,305 | $ 708 | 488,292 | (995,606) | (73,448) | 924,359 | $ 0 | ||
Balance, beginning of period, shares at Dec. 31, 2022 | 31,269,000 | 31,269,000 | |||||||
Balance, beginning of period at Dec. 31, 2022 | $ 355,249 | $ 708 | 495,189 | (1,018,034) | (58,829) | 936,215 | |||
Net Income (Loss) | 20,928 | ||||||||
Foreign currency translation adjustments | 2,843 | ||||||||
Total comprehensive income (loss) | 23,771 | ||||||||
Repurchase of common stock | (9,306) | $ (2) | (9,304) | ||||||
Repurchase of common stock, shares | (166,000) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 893 | 893 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 19,000 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 6 | (6) | |||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 574,000 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (18,000) | ||||||||
Stock-based compensation expense | 6,412 | 6,412 | |||||||
Dividends | (8,796) | (8,796) | |||||||
Balance, ending of period, shares at Mar. 31, 2023 | 31,678,000 | ||||||||
Balance, ending of period at Mar. 31, 2023 | $ 368,223 | $ 712 | 493,184 | (1,018,034) | (55,986) | 948,347 | |||
Balance, beginning of period, shares at Dec. 31, 2022 | 31,269,000 | 31,269,000 | |||||||
Balance, beginning of period at Dec. 31, 2022 | $ 355,249 | $ 708 | 495,189 | (1,018,034) | (58,829) | 936,215 | |||
Net Income (Loss) | 53,576 | ||||||||
Unrealized gain (loss) on short-term investments, net of tax | 0 | ||||||||
Foreign currency translation adjustments | (1,943) | ||||||||
Total comprehensive income (loss) | $ 51,633 | ||||||||
Balance, ending of period, shares at Sep. 30, 2023 | 29,726,000 | 29,726,000 | |||||||
Balance, ending of period at Sep. 30, 2023 | $ 260,491 | $ 713 | 483,063 | (1,125,897) | (60,772) | 963,384 | |||
Balance, beginning of period, shares at Mar. 31, 2023 | 31,678,000 | ||||||||
Balance, beginning of period at Mar. 31, 2023 | 368,223 | $ 712 | 493,184 | (1,018,034) | (55,986) | 948,347 | |||
Net Income (Loss) | 13,954 | ||||||||
Foreign currency translation adjustments | 1,709 | ||||||||
Total comprehensive income (loss) | 15,663 | ||||||||
Repurchase of common stock | (112) | (112) | |||||||
Repurchase of common stock, shares | (2,000) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 771 | 771 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 18,000 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 1 | (1) | |||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 64,000 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (7,000) | ||||||||
Stock-based compensation expense | 7,644 | 7,644 | |||||||
Dividends | (8,878) | (8,878) | |||||||
Balance, ending of period, shares at Jun. 30, 2023 | 31,751,000 | ||||||||
Balance, ending of period at Jun. 30, 2023 | 383,311 | $ 713 | 501,486 | (1,018,034) | (54,277) | 953,423 | |||
Net Income (Loss) | 18,694 | 18,694 | |||||||
Unrealized gain (loss) on short-term investments, net of tax | 0 | ||||||||
Foreign currency translation adjustments | (6,495) | (6,495) | |||||||
Total comprehensive income (loss) | 12,199 | ||||||||
Repurchase of common stock | (108,007) | (144) | (107,863) | ||||||
Repurchase of common stock, shares | (1,994) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 877 | 877 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 20 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 12 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (63) | ||||||||
Stock-based compensation expense | 7,197 | 7,197 | |||||||
Purchase of capped call transactions (net of tax) | (26,353) | (26,353) | |||||||
Dividends | $ (8,733) | (8,733) | |||||||
Balance, ending of period, shares at Sep. 30, 2023 | 29,726,000 | 29,726,000 | |||||||
Balance, ending of period at Sep. 30, 2023 | $ 260,491 | $ 713 | $ 483,063 | $ (1,125,897) | $ (60,772) | $ 963,384 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 53,576 | $ 23,911 |
Adjustments to reconcile net income to net cash provided by operating activities- | ||
Depreciation | 17,549 | 21,817 |
Amortization | 34,543 | 36,470 |
Asset impairment | 1,689 | 30,126 |
Gain on lease modifications | (4,349) | 0 |
Loss on short-term investments and other | 0 | 19 |
Loss on derivative liability upon debt conversion | 0 | 7,456 |
Unrealized foreign currency transactions gain, net | (442) | (1,700) |
Deferred income taxes | (12,504) | (16,457) |
Stock-based compensation | 21,253 | 20,778 |
Changes in operating assets and liabilities, net of acquired amounts: | ||
Trade accounts receivable, net | (33,351) | (22,026) |
Other current and non-current assets and liabilities | (11,449) | (16,430) |
Income taxes payable/receivable | (4,650) | (7,188) |
Trade accounts payable and accrued liabilities | (24,158) | (67,053) |
Deferred revenue | 14,658 | (150) |
Net cash provided by operating activities | 52,365 | 9,573 |
Cash flows from investing activities: | ||
Purchases of software, property and equipment | (22,940) | (31,564) |
Proceeds from sale/maturity of short-term investments | 71 | 27,447 |
Net cash used in investing activities | (22,869) | (4,117) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 2,541 | 2,217 |
Payment of cash dividends | (26,231) | (25,396) |
Repurchase of common stock | (116,418) | (73,380) |
Deferred acquisition payments | (3,220) | (1,959) |
Proceeds from long-term debt | 470,000 | 290,000 |
Payments on long-term debt | (310,625) | (247,926) |
Purchase of capped call transactions related to convertible notes | 34,298 | 0 |
Payments of deferred financing costs | (13,518) | 0 |
Settlement and merchant reserve activity | (46,196) | (13,931) |
Net cash used in financing activities | (77,965) | (70,375) |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (448) | (7,689) |
Net decrease in cash, cash equivalents, and restricted cash | (48,917) | (72,608) |
Cash, cash equivalents and restricted cash, beginning of period | 389,018 | 391,902 |
Cash, cash equivalents and restricted cash, end of period | 340,101 | 319,294 |
Cash paid during the period for- | ||
Interest | 21,772 | 12,367 |
Income taxes | 39,136 | 31,817 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 146,730 | 146,685 |
Settlement and merchant reserve assets | 193,371 | 172,609 |
Total cash, cash equivalents and restricted cash | $ 340,101 | $ 319,294 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 18,694 | $ 12,481 | $ 53,576 | $ 23,911 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General
General | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. GENERAL We have prepared the accompanying unaudited condensed consolidated financial statements as of September 30, 2023 and December 31, 2022, and for the quarters and nine months ended September 30, 2023 and 2022, in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”) for interim financial information, and pursuant to the instructions to Form 10-Q and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of our management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial position and operating results have been included. The unaudited Condensed Consolidated Financial Statements (the “Financial Statements”) should be read in conjunction with the Consolidated Financial Statements and notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), contained in our Annual Report on Form 10-K for the year ended December 31, 2022 (our “2022 10-K”), filed with the SEC. The results of operations for the quarter and nine months ended September 30, 2023 are not necessarily indicative of the expected results for the entire year ending December 31, 2023 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates in Preparation of Financial Statements. The preparation of our Financial Statements requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our Financial Statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Revenue. The majority of our future revenue is related to our revenue management solution customer contracts that include variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2023 through 2036 . Our customer contracts may include guaranteed minimums and fixed monthly or annual fees. As of September 30, 2023 , our aggregate amount of the transaction price allocated to the remaining performance obligations is $ 1.5 billion, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize over 65 % of this amount by the end of 2025 , with the remaining amount recognized by the end of 2036 . We have excluded variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied from this amount. 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 the quarters and nine months ended September 30, 2023 and 2022 were as follows (in thousands): Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SaaS and related solutions $ 250,777 $ 238,614 $ 764,253 $ 704,303 Software and services 23,578 23,123 73,235 61,627 Maintenance 12,513 11,571 34,446 33,946 Total revenue $ 286,868 $ 273,308 $ 871,934 $ 799,876 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for the quarters and nine months ended September 30, 2023 and 2022, as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Americas (principally the U.S.) 86 % 86 % 86 % 85 % Europe, Middle East, and Africa 9 % 10 % 10 % 11 % Asia Pacific 5 % 4 % 4 % 4 % Total revenue 100 % 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in other industry markets including retail, healthcare, financial services, insurance, and government entities. Revenue by customer vertical for the quarters and nine months ended September 30, 2023 and 2022, as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Broadband/Cable/Satellite 53 % 55 % 53 % 55 % Telecommunications 20 % 20 % 20 % 19 % Other 27 % 25 % 27 % 26 % Total revenue 100 % 100 % 100 % 100 % Deferred revenue as of December 31, 2022 and 2021, recognized during the quarters ended September 30, 2023 and 2022 was $ 7.8 million and $ 7.6 million, respectively, and during the nine months ended September 30, 2023 and 2022 was $ 39.3 million and $ 47.9 million, respectively. Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less at the date of the purchase to be cash equivalents. As of September 30, 2023 and December 31, 2022, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. For the cash and cash equivalents denominated in foreign currencies and/or located outside the U.S., we do not anticipate any material amounts being unavailable for use in running our business, but may face limitations on moving cash out of certain foreign jurisdictions due to currency controls and potential negative economic consequences. Restricted Cash. Restricted cash includes cash that is legally or contractually restricted, as well as our settlement and merchant reserve assets (discussed below). The nature of the restrictions on our settlement and merchant reserve assets consists of contractual restrictions with the merchants and restrictions arising from our policy and intention. It has historically been our policy to segregate settlement and merchant reserve assets from our operating cash balances and our intention is to continue to do so. As of September 30, 2023 and December 31, 2022 , we had $ 1.2 million and $ 1.0 million, respectively, of restricted cash that serves to collateralize bank guarantees and outstanding letters of credit included in cash and cash equivalents in our unaudited Condensed Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”). Short-term Investments. Our short-term investments as of September 30, 2023 and December 31, 2022 were zero and $ 0.1 million, respectively. Primarily all short-term investments held by us have contractual maturities of less than two years from the time of acquisition. Our short-term investments as of December 31, 2022 consisted of fixed income securities. Proceeds from the sale/maturity of short-term investments for the nine months ended September 30, 2023 and 2022 were $ 0.1 million and $ 27.4 million, respectively. Settlement and Merchant Reserve Assets and Liabilities. Settlement assets and settlement liabilities represent cash collected on behalf of merchants via payment processing services which is held for an established holding period until settlement with the customer. The holding period is generally one to four business days depending on the payment model and contractual terms with the customer. During the holding period, cash is subject to restriction and segregation based on the nature of our custodial relationship with the merchants. Should we fail to remit these funds to our merchants, the merchant's sole recourse for payment would be against us. These rights and obligations are set forth in the contracts between us and the merchants. Settlement assets are held with various major financial institutions and a corresponding liability is recorded for the amounts owed to the customer. At any given time, there may be differences between the cash held and the corresponding liability due to the timing of operating-related cash transfers. Merchant reserve assets/liabilities represent deposits collected from merchants to mitigate our risk of loss due to nonperformance of settlement obligations initiated by those merchants using our payment processing services, or non-payment by customers for services rendered by us. We perform a credit risk evaluation on each customer based on multiple criteria, which provide the basis for the deposit amount required for each merchant. For the duration of our relationship with each merchant, we hold their reserve deposits with major financial institutions. We hold these funds in separate accounts and are fully offset by corresponding liabilities. The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands): September 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 178,367 $ 176,633 $ 219,368 $ 218,525 Merchant reserve assets/liabilities 15,004 15,004 19,285 19,285 Total $ 193,371 $ 191,637 $ 238,653 $ 237,810 Financial Instruments . Our financial instruments as of September 30, 2023 and December 31, 2022 include cash and cash equivalents, short-term investments, settlement and merchant reserve assets and liabilities, accounts receivable, accounts payable, and debt. Due to their short maturities, the carrying amounts of cash equivalents, settlement and merchant reserve assets and liabilities, accounts receivable, and accounts payable approximate their fair value. Our short-term investments and certain of our cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. 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): September 30, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 5,457 $ - $ 5,457 $ 5,318 $ - $ 5,318 Short-term investments: Asset-backed securities - - - - 71 71 Total $ 5,457 $ - $ 5,457 $ 5,318 $ 71 $ 5,389 Valuation inputs used to measure the fair values of our money market funds were derived from quoted market prices. The fair values of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. 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): September 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 2023 Convertible Notes (par value) $ 425,000 $ 414,694 $ - $ - 2021 Credit Agreement (carrying value including Term Loan 135,000 135,000 140,625 140,625 Revolver 15,000 15,000 275,000 275,000 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. GOODWILL AND INTANGIBLE ASSETS Goodwill. The changes in the carrying amount of goodwill for the nine months ended September 30, 2023 were as follows (in thousands): January 1, 2023, balance $ 304,036 Adjustments related to prior acquisitions ( 20 ) Impairment charge related to Keydok, LLC ( 1,118 ) Effects of changes in foreign currency exchange rates 98 September 30, 2023, balance $ 302,996 See Notes 5 and 6 for further discussion of management's decision to shut down Keydok, LLC ("Keydok") resulting in the impairment charge recorded above. Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist primarily of acquired customer contracts and software. As of September 30, 2023 and December 31, 2022, the carrying values of these assets were as follows (in thousands): September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Acquired customer contracts $ 165,422 $ ( 127,490 ) $ 37,932 $ 165,497 $ ( 120,080 ) $ 45,417 Software 176,192 ( 159,451 ) 16,741 173,111 ( 150,337 ) 22,774 Total other intangible assets $ 341,614 $ ( 286,941 ) $ 54,673 $ 338,608 $ ( 270,417 ) $ 68,191 The total amortization expense related to other intangible assets for the third quarters of 2023 and 2022 were $ 6.4 million and $ 6.9 million, respectively, and for the nine months ended September 30, 2023 and 2022 were $ 19.5 million and $ 21.8 million, respectively. Based on the September 30, 2023 net carrying value of our intangible assets, the estimated total amortization expense for each of the five succeeding fiscal years ending December 31 are: 2023 - $ 25.7 million; 2024 - $ 15.8 million; 2025 - $ 11.3 million; 2026 - $ 7.8 million; and 2027 - $ 3.1 million. Customer Contract Costs . As of September 30, 2023 and December 31, 2022, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands): September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Customer contract costs $ 91,510 $ ( 38,174 ) $ 53,336 $ 85,336 $ ( 30,601 ) $ 54,735 The total amortization expense related to customer contract costs for the third quarters of 2023 and 2022 were $ 5.0 million and $ 3.8 million, respectively, and for the nine months ended September 30, 2023 and 2022 were $ 14.4 million and $ 14.2 million, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 4. DEBT Our long-term debt, as of September 30, 2023 and December 31, 2022, was as follows (in thousands): September 30, 2023 December 31, 2022 2023 Convertible Notes: 2023 Convertible Notes – senior unsecured convertible notes, due September 15, 2028 , cash interest at 3.875 % $ 425,000 $ - Less – deferred financing costs ( 13,864 ) - 2023 Convertible Notes, net of unamortized discounts 411,136 - 2021 Credit Agreement: 2021 Term Loan, due September 2026 , interest at adjusted SOFR plus 7.115 % at September 30, 2023) 135,000 140,625 Less – deferred financing costs ( 2,638 ) ( 2,656 ) 2021 Term Loan, net of unamortized discounts 132,362 137,969 $ 450 million revolving loan facility, due September 2026 , interest at adjusted 7.115 % at September 30, 2023) 15,000 275,000 Total debt, net of unamortized discounts 558,498 412,969 Current portion of long-term debt, net of unamortized discounts ( 22,500 ) ( 37,500 ) Long-term debt, net of unamortized discounts $ 535,998 $ 375,469 2023 Convertible Notes. In September 2023, we completed an offering of $ 425.0 million of 3.875 % senior convertible notes due September 15, 2028 (the "2023 Convertible Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2023 Convertible Notes are unsecured obligations and will pay 3.875 % annual cash interest, payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2024. The 2023 Convertible Notes will be convertible at the option of the noteholders before June 15, 2028 upon the occurrence of certain events. On or after June 15, 2028 and until the close of business on the second scheduled trading day immediately preceding the maturity date, noteholders may convert all or any portion of their notes at any time regardless of these conditions. We are required to satisfy our conversion obligation as follows: (i) paying cash up to the aggregate principal amount of notes to be converted; and (ii) to the extent the value of our conversion obligation exceeds the par value, we will satisfy the remaining conversion obligation in our common stock, cash, or a combination thereof, at our election. As of September 30, 2023, none of the conditions to early convert have been met. The 2023 Convertible Notes will be convertible at an initial conversion rate of 14.0753 shares of our common stock per $ 1,000 principal amount of the 2023 Convertible Notes, which is equivalent to an initial conversion price of approximately $ 71.05 per share of our common stock. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. Under the terms of the 2023 Convertible Notes, we will adjust the conversion rate for any quarterly dividends exceeding $ 0.28 per share. Holders may require us, subject to certain conditions, to repurchase all or a portion of their 2023 Convertible Notes for cash upon the occurrence of a fundamental change (as defined in the Indenture related to the 2023 Convertible Notes (“2023 Notes Indenture”)). The repurchase price will be equal to the principal amount thereof plus accrued and unpaid interest to, but excluding, the repurchase date. We may not redeem the 2023 Convertible Notes prior to September 21, 2026. On or after September 21, 2026 , we may redeem for cash all or part of the 2023 Convertible Notes, subject to a partial redemption limitation that requires at least $ 100.0 million of the principal amount of the 2023 Convertible Notes to remain outstanding if the last reported sales price of our common stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. The redemption price will equal the principal amount of the 2023 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund has been established for the 2023 Convertible Notes. The 2023 Notes Indenture includes customary terms, including certain events of default after which the 2023 Convertible Notes may be due and payable immediately. The 2023 Notes Indenture contains customary affirmative covenants, including a reporting covenant. In September 2023, in connection with the pricing of the 2023 Convertible Notes, we entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain of the initial purchasers of the 2023 Convertible Notes and other financial institutions (collectively, the “Option Counterparties”). We used $ 34.3 million of the net proceeds from the offering of the 2023 Convertible Notes to pay the premiums of the Capped Call Transactions. The Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the 2023 Convertible Notes, 5.98 million shares of our common stock, the same number of shares of common stock underlying the 2023 Convertible Notes. The Capped Call Transactions will expire upon the maturity of the 2023 Convertible Notes.45 The Capped Call Transactions are expected generally to reduce the potential dilution to the common stock upon conversion of the 2023 Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of the 2023 Convertible Notes, in the event that the market price per share of common stock (as measured under the terms of the Capped Call Transactions) is greater than the strike price of the Capped Call Transactions. The strike price of the Capped Call Transactions initially corresponds to the initial conversion price of the 2023 Convertible Notes, or approximately $ 71.05 per share of our common stock. The Capped Call Transactions have an initial cap price of approximately $ 96.52 per share of our common stock, which represents a premium of 80 % over the last reported sale price of our common stock on the date the 2023 Convertible Notes were issued, subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions are separate transactions, entered into by us with the Option Counterparties. They are not part of the terms of the 2023 Convertible Notes and do not change the holders’ rights under the 2023 Convertible Notes. Holders of the 2023 Convertible Notes do not have any rights with respect to the Capped Call Transactions. The Capped Call Transactions do not meet the criteria for separate accounting as a derivative as they meet the criteria for equity classification. The premiums paid for the Capped Call Transactions of $ 34.3 million have been included as a reduction to additional paid-in capital, net of $ 7.9 million of deferred income taxes. The proceeds from the sale of the 2023 Convertible Notes, net of financing costs, were $ 411.0 million. We used the net proceeds to: (i) repay the principal amount of $ 275.0 million of outstanding borrowings under our $ 450.0 million, five-year revolving loan facility (the "2021 Revolver"); (ii) repurchase 1.7 million shares of our common stock for $ 90.1 million in privately negotiated transactions, concurrently with the pricing of the offering of the 2023 Convertible Notes; and (iii) pay the $ 34.3 million premium for the Capped Call Transactions. The remaining net proceeds were used for general corporate purposes. In conjunction with the closing of the 2023 Convertible Notes, we incurred financing costs of $ 14.0 million which are being amortized to interest expense using the effective interest method through maturity. 2021 Credit Agreement. During the nine months ended September 30, 2023 , we made $ 5.6 million of principal repayments on our $ 150.0 million aggregate principal five-year term loan (the “2021 Term Loan”). In conjunction with the issuance of the 2023 Convertible Notes, we repaid $ 275.0 million on our 2021 Revolver. As of September 30, 2023 , we had $ 15.0 million outstanding on our 2021 Revolver, leaving $ 435.0 million available to us. As of September 30, 2023 , the interest rate on our 2021 Term Loan and our 2021 Revolver was 7.115 % (adjusted SOFR, credit spread adjustment of 0.10 %, plus 1.625 % per annum), effective through December 2023, and our commitment fee on the unused 2021 Revolver was 0.20 %. The interest rates under the 2021 Credit Agreement are based upon our choice of an adjusted SOFR rate plus an applicable margin of 1.375 % - 2.125 %, or an alternate base rate (“ABR”) plus an applicable margin of 0.375 % - 1.125 %, with the applicable margin, being determined in accordance with our then-net secured total leverage ratio. We pay a commitment fee of 0.150 % - 0.325 % of the average daily unused amount of the 2021 Revolver, with the commitment fee rate being determined in accordance with our then-net secured total leverage ratio. In April 2023, we entered into the First Amendment to the 2021 Credit Agreement (the “First Amendment”). The First Amendment replaced the interest rate benchmark, from LIBOR to the Secured Overnight Financing Rate ("SOFR"), and all references to “Eurodollar Borrowing(s)” or “Eurodollar Loans” were replaced with “Term SOFR Borrowing(s)” or “Term SOFR Loans”. Any loan amounts outstanding at the effective date of the First Amendment continued to bear interest at the applicable LIBOR rate until the end of the interest election period applicable to such loan. All Term SOFR Loans are subject to a 0.10 % credit spread adjustment. In September 2023, we entered into the Second Amendment to the 2021 Credit Agreement (the “Second Amendment”). The Second Amendment permits the issuance and sale of the 2023 Convertible Notes and the related Capped Call Transactions (described above). In conjunction with the Second Amendment, we incurred financing costs of $ 0.5 million. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | 5. ACQUISITIONS Keydok, LLC. On September 14, 2021, we acquired Keydok, a digital identity and document management platform provider, headquartered in Mexico. In March 2023, we decided to dissolve the Keydok business. See Note 6 for additional discussion. DGIT Systems Pty Ltd. On October 4, 2021 , we acquired DGIT Systems Pty Ltd ( “DGIT” ), a provider of configure, price and quote (CPQ) and order management solutions for the telecommunications industry. We acquired 100 % of the equity of DGIT for a purchase price of approximately $ 16 million, approximately $ 14 million paid upon close and the remaining escrowed funds of approximately $ 2 million to be paid through the first quarter of 2025, subject to certain reductions, as applicable. As of September 30, 2023 , $ 1.2 million of the escrowed funds had been paid. The DGIT acquisition includes provisions for up to approximately $ 13 million of potential future earn-out payments. The earn-out payments are tied to performance-based goals and a defined service period by the eligible recipients and are accounted for as post-acquisition compensation, as applicable. The earn-out period is through September 30, 2025. During 2022, $ 0.3 million of the earn-out had been achieved and was paid out in March 2023. |
Restructuring and Reorganizatio
Restructuring and Reorganization Charges | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Reorganization Charges | 6. RESTRUCTURING AND REORGANIZATION CHARGES During the third quarters of 2023 and 2022 , we recorded restructuring and reorganization charges of $ 1.2 million and $ 14.2 million, respectively, and for the nine months ended September 30, 2023 and 2022 , we recorded restructuring and reorganization charges of $ 8.4 million and $ 46.3 million, respectively. During the nine months ended September 30, 2023 we implemented the following restructuring and reorganizational activities: • In March 2023, we decided to dissolve the Keydok business, which we had acquired in September of 2021. As a result, we recorded net impairment charges of $ 1.2 million, to include the write-off of the acquired goodwill. We also subsequently terminated approximately 30 Mexico-based employees, which resulted in restructuring charges related to involuntary terminations of $ 1.6 million. • We reduced our workforce by approximately 82 employees, mainly in the U.S., as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $ 2.2 million. • We modified three of our real estate leases, at previously closed locations in India and the United States, resulting in earlier termination dates and the recognition of a $ 4.3 million gain. We also recorded $ 0.5 million of additional operating lease right-of-use asset impairments. • During the second quarter of 2023 we exited a reseller agreement that was acquired with the acquisition of Forte Payment Systems, Inc. in 2018. As a result, we incurred expense of $ 3.6 million, of which $ 1.8 million has been paid and $ 1.8 million was accrued as of September 30, 2023. The activity in the restructuring and reorganization reserves during the nine months ended September 30, 2023 was as follows (in thousands): Termination Benefits Other Total January 1, 2023, balance $ 2,491 $ - $ 2,491 Charged to expense during period 3,801 4,620 8,421 Cash payments ( 6,570 ) ( 4,407 ) ( 10,977 ) Adjustment for asset impairment - ( 1,675 ) ( 1,675 ) Adjustment for gain on lease modifications - 4,349 4,349 Adjustment for accelerated depreciation - ( 394 ) ( 394 ) Other 688 - 688 September 30, 2023, balance $ 410 $ 2,493 $ 2,903 , $ 2.9 million of the restructuring and reorganization reserves were included in current liabilities. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | 7. COMMITMENTS, GUARANTEES AND CONTINGENCIES Guarantees . In the ordinary course of business, we may provide guarantees in the form of bid bonds, performance bonds, or standby letters of credit. As of September 30, 2023 , we had $ 1.9 million of restricted assets used to collateralize these guarantees, with $ 1.2 million included in cash and cash equivalents and $ 0.7 million included in other non-current assets. We have performance guarantees in the form of surety bonds and money transmitter bonds, both issued through a third-party that are not required to be on our Balance Sheet. As of September 30, 2023 , we had performance guarantees of $ 4.3 million. We are ultimately liable for claims that may occur against these guarantees. We have no history of material claims or are aware of circumstances that would require us to pay under any of these arrangements. We also believe that the resolution of any claim that may arise in the future, either individually or in the aggregate, would not be material to our Financial Statements. As of September 30, 2023 , we had total aggregate money transmitter bonds of $ 19.9 million outstanding. These money transmitter bonds are for the benefit of various states to comply with the states’ financial requirements and industry regulations for money transmitter licenses. Warranties. We generally warrant that our solutions and related offerings will conform to published specifications, or to specifications provided in an individual customer arrangement, as applicable. The typical warranty period is 90 days from the date of acceptance of the solution or offering. For certain service offerings we provide a warranty for the duration of the services provided. We generally warrant that those services will be performed in a professional and skillful manner. The typical remedy for breach of warranty is to correct or replace any defective deliverable, and if not possible or practical, we will accept the return of the defective deliverable and refund the amount paid under the customer arrangement that is allocable to the defective deliverable. Our contracts also generally contain limitation of damages provisions in an effort to reduce our exposure to monetary damages arising from breach of warranty claims. Historically, we have incurred minimal warranty costs, and as a result, do not maintain a warranty reserve. Solution and Services Indemnifications. Arrangements with our customers generally include an indemnification provision that will indemnify and defend a customer in actions brought against the customer that claim our products and/or services infringe upon a copyright, trade secret, or valid patent. Historically, we have not incurred any significant costs related to such indemnification claims, and as a result, do not maintain a reserve for such exposure. Claims for Company Non-performance. Our arrangements with our customers typically limit our liability for breach to a specified amount of the direct damages incurred by the customer resulting from the breach. From time-to-time, these arrangements may also include provisions for possible liquidated damages or other financial remedies for our non-performance, or in the case of certain of our solutions, provisions for damages related to service level performance requirements. The service level performance requirements typically relate to platform availability and timeliness of service delivery. As of September 30, 2023, we believe we have adequate reserves, based on our historical experience, to cover any reasonably anticipated exposure as a result of our nonperformance for any past or current arrangements with our customers. Indemnifications Related to Officers and the Board of Directors. Other guarantees include promises to indemnify, defend, and hold harmless our directors, and certain officers. Such indemnification covers any expenses and liabilities reasonably incurred by a person, by reason of the fact that such person is, was, or has agreed to be a director or officer, in connection with the investigation, defense, and settlement of any threatened, pending, or contemplated action, suit, proceeding, or claim. We maintain directors’ and officers’ (“D&O”) insurance coverage to protect against such losses. We have not historically incurred any losses related to these types of indemnifications and are not aware of any pending or threatened actions or claims against any officer or member of our Board of Directors (the "Board"). As a result, we have not recorded any liabilities related to such indemnifications as of September 30, 2023. In addition, as a result of the insurance policy coverage, we believe these indemnification agreements are not significant to our results of operations. Legal Proceedings. From time to time, we are involved in litigation relating to claims arising out of our operations in the normal course of business. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 8. EARNINGS PER COMMON SHARE Basic and diluted earnings per common share (“EPS”) amounts are presented on the face of our unaudited Condensed Consolidated Statements of Income (the "Income Statements"). The reconciliation of the basic and diluted EPS denominators related to common shares is included in the following table (in thousands): Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Basic weighted-average common shares 30,097 30,941 30,381 31,219 Dilutive effect of restricted common stock 187 218 159 268 Diluted weighted-average common shares 30,284 31,159 30,540 31,487 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. Potentially dilutive common shares related to non-participating unvested restricted stock and stock warrants were excluded from the computation of diluted EPS, as the effect was anti-dilutive, and were not material in any period presented. Stock warrants (see Note 9) will only have a dilutive effect upon vesting in those periods in which our average stock price exceeds the exercise price of $ 26.68 per warrant. |
Stockholders' Equity and Equity
Stockholders' Equity and Equity Compensation Plans | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Equity Compensation Plans | 9. STOCKHOLDERS’ EQUITY AND EQUITY COMPENSATION PLANS Stock Repurchase Program. We currently have a stock repurchase program, approved by our Board, authorizing us to repurchase shares of our common stock from time-to-time as market and business conditions warrant (the “Stock Repurchase Program”). During the third quarter and nine months ended September 30, 2023, we repurchased approximately 1,991,000 shares of our common stock for $ 107.0 million (weighted-average price of $ 53.73 per share). During the third quarter of 2022 we repurchased approximately 488,000 shares of our common stock for $ 27.9 million (weighted-average price of $ 57.27 per share), and during the nine months ended September 30, 2022 we repurchased approximately 1,114,000 shares of our common stock for $ 65.5 million (weighted-average price of $ 58.80 per share), respectively. The repurchases during third quarter of 2023 were executed as follows: • In August 2023, we entered into an SEC Rule 10b5-1 Plan under which we repurchased approximately 275,000 shares of our common stock for $ 15.0 million (weighted-average price of $ 54.65 per share). This plan was terminated by us in early September 2023. • In September 2023, and concurrent with the pricing of the offering of the 2023 Convertible Notes, we repurchased approximately 1,680,000 million shares of our common stock for $ 90.1 million (weighted-average price of $ 53.62 per share) in privately negotiated transactions effected through one of the initial purchasers of the offering or its affiliate, as our agent. • In September 2023, we entered into a second SEC Rule 10b5-1 Plan under which we repurchased approximately 36,000 shares of our common stock for $ 1.9 million (weighted-average price of $ 52.13 per share). This plan will remain in effect, unless terminated by us or by the provisions of the plan, through the earlier of: (i) December 31, 2024; or (ii) when an aggregate purchase price of $ 100.0 million of our common stock is repurchased under the plan. As part of the 2022 Inflation Reduction Act, effective January 1, 2023, a one percent excise tax is imposed on net share repurchases during the year. As of September 30, 2023, we accrued $ 0.9 million for the excise tax which is included as a cost of treasury stock, however this is not reflected in the share repurchase amounts above. As of September 30, 2023 , the total remaining number of shares available for repurchase pursuant to the prior authorization (as defined below) under the Stock Repurchase Program totaled 0.1 million shares. In August 2023, our Board authorized an additional $ 100.0 million of repurchases under the Stock Repurchase Program in addition to , and after the repurchase of, the remaining 0.1 million shares under the prior authorization. Stock Repurchases for Tax Withholdings. In addition to the above-mentioned stock repurchases, during the third quarters of 2023 and 2022 , we repurchased and then cancelled approximately 3,000 shares of common stock for $ 0.1 million and approximately 7,000 shares of common stock for $ 0.4 million, respectively, and during the nine months ended September 30, 2023 and 2022 we repurchased and then cancelled approximately 171,000 shares of common stock for $ 9.6 million and approximately 132,000 shares of common stock for $ 8.4 million, respectively, in connection with minimum tax withholding requirements resulting from the vesting of restricted common stock under our stock incentive plans. Stock Incentive Plan. In August 2023, we increased the number of shares of our common stock authorized and reserved for issuance under the Amended and Restated 2005 Stock Incentive Plan by 2.9 million shares to a total of 27.9 million shares. This increase was approved by our stockholders at our 2023 Annual Meeting. Cash Dividends. During the third quarter of 2023 , our Board approved a quarterly cash dividend of $ 0.28 per share of common stock, totaling $ 8.7 million. During the third quarter of 2022 , our Board approved a quarterly cash dividend of $ 0.265 per share of common stock, totaling $ 8.4 million. Dividends declared for the nine months ended September 30, 2023 and 2022 totaled $ 26.4 million and $ 25.4 million, respectively. Warrants . In 2014, in conjunction with the execution of an amendment to our agreement with Comcast Corporation (“Comcast”), we issued stock warrants (the “Warrant Agreement”) for the right to purchase up to 2.9 million shares of our common stock (the “Stock Warrants”) as an additional incentive for Comcast to convert customer accounts onto our solutions based on various milestones. The Stock Warrants have a ten-year term and an exercise price of $ 26.68 per warrant. As of September 30, 2023 , 1.0 million Stock Warrants remain issued, none of which have vested. The remaining unvested Stock Warrants will be accounted for as a customer contract cost asset once the performance conditions necessary for vesting are considered probable. Stock-Based Awards. A summary of our unvested restricted common stock activity during the quarter and nine months ended September 30, 2023 is as follows (shares in thousands): Quarter Ended Nine Months Ended September 30, 2023 September 30, 2023 Shares Weighted- Shares Weighted- Unvested awards, beginning 1,334 $ 53.44 1,147 $ 53.34 Awards granted 13 53.29 701 51.69 Awards forfeited/cancelled ( 69 ) 53.07 ( 99 ) 53.30 Awards vested ( 9 ) 53.17 ( 480 ) 50.30 Unvested awards, ending 1,269 $ 53.46 1,269 $ 53.46 Included in the awards granted during the nine months ended September 30, 2023 are awards issued to members of executive management and certain key employees in the form of: (i) performance-based awards of approximately 134,000 restricted common stock shares, which vest in the first quarter of 2025 upon meeting certain pre-established financial performance objectives over a two-year performance period; and (ii) market-based awards of approximately 45,000 restricted common stock shares, which vest in the first quarter of 2026 upon meeting a relative total shareholder return performance achievement tier. Certain of these awards become fully vested upon a change in control, as defined, and the subsequent involuntary termination of employment. The other restricted common stock shares granted during the nine months ended September 30, 2023 are primarily time-based awards, which vest annually over two to three years with no restrictions other than the passage of time. Certain shares of the restricted common stock become fully vested upon a change in control, as defined, involuntary terminations of employment, or death. We recorded stock-based compensation expense for the third quarters of 2023 and 2022 of $ 7.2 million and $ 8.7 million, respectively, and for the nine months ended September 30, 2023 and 2022 of $ 21.3 million and $ 20.8 million, respectively . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements. The preparation of our Financial Statements requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our Financial Statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Revenue | Revenue. The majority of our future revenue is related to our revenue management solution customer contracts that include variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2023 through 2036 . Our customer contracts may include guaranteed minimums and fixed monthly or annual fees. As of September 30, 2023 , our aggregate amount of the transaction price allocated to the remaining performance obligations is $ 1.5 billion, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize over 65 % of this amount by the end of 2025 , with the remaining amount recognized by the end of 2036 . We have excluded variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied from this amount. 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 the quarters and nine months ended September 30, 2023 and 2022 were as follows (in thousands): Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SaaS and related solutions $ 250,777 $ 238,614 $ 764,253 $ 704,303 Software and services 23,578 23,123 73,235 61,627 Maintenance 12,513 11,571 34,446 33,946 Total revenue $ 286,868 $ 273,308 $ 871,934 $ 799,876 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for the quarters and nine months ended September 30, 2023 and 2022, as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Americas (principally the U.S.) 86 % 86 % 86 % 85 % Europe, Middle East, and Africa 9 % 10 % 10 % 11 % Asia Pacific 5 % 4 % 4 % 4 % Total revenue 100 % 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in other industry markets including retail, healthcare, financial services, insurance, and government entities. Revenue by customer vertical for the quarters and nine months ended September 30, 2023 and 2022, as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Broadband/Cable/Satellite 53 % 55 % 53 % 55 % Telecommunications 20 % 20 % 20 % 19 % Other 27 % 25 % 27 % 26 % Total revenue 100 % 100 % 100 % 100 % Deferred revenue as of December 31, 2022 and 2021, recognized during the quarters ended September 30, 2023 and 2022 was $ 7.8 million and $ 7.6 million, respectively, and during the nine months ended September 30, 2023 and 2022 was $ 39.3 million and $ 47.9 million, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less at the date of the purchase to be cash equivalents. As of September 30, 2023 and December 31, 2022, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. For the cash and cash equivalents denominated in foreign currencies and/or located outside the U.S., we do not anticipate any material amounts being unavailable for use in running our business, but may face limitations on moving cash out of certain foreign jurisdictions due to currency controls and potential negative economic consequences. Restricted Cash. Restricted cash includes cash that is legally or contractually restricted, as well as our settlement and merchant reserve assets (discussed below). The nature of the restrictions on our settlement and merchant reserve assets consists of contractual restrictions with the merchants and restrictions arising from our policy and intention. It has historically been our policy to segregate settlement and merchant reserve assets from our operating cash balances and our intention is to continue to do so. As of September 30, 2023 and December 31, 2022 , we had $ 1.2 million and $ 1.0 million, respectively, of restricted cash that serves to collateralize bank guarantees and outstanding letters of credit included in cash and cash equivalents in our unaudited Condensed Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”). Short-term Investments. Our short-term investments as of September 30, 2023 and December 31, 2022 were zero and $ 0.1 million, respectively. Primarily all short-term investments held by us have contractual maturities of less than two years from the time of acquisition. Our short-term investments as of December 31, 2022 consisted of fixed income securities. Proceeds from the sale/maturity of short-term investments for the nine months ended September 30, 2023 and 2022 were $ 0.1 million and $ 27.4 million, respectively. Settlement and Merchant Reserve Assets and Liabilities. Settlement assets and settlement liabilities represent cash collected on behalf of merchants via payment processing services which is held for an established holding period until settlement with the customer. The holding period is generally one to four business days depending on the payment model and contractual terms with the customer. During the holding period, cash is subject to restriction and segregation based on the nature of our custodial relationship with the merchants. Should we fail to remit these funds to our merchants, the merchant's sole recourse for payment would be against us. These rights and obligations are set forth in the contracts between us and the merchants. Settlement assets are held with various major financial institutions and a corresponding liability is recorded for the amounts owed to the customer. At any given time, there may be differences between the cash held and the corresponding liability due to the timing of operating-related cash transfers. Merchant reserve assets/liabilities represent deposits collected from merchants to mitigate our risk of loss due to nonperformance of settlement obligations initiated by those merchants using our payment processing services, or non-payment by customers for services rendered by us. We perform a credit risk evaluation on each customer based on multiple criteria, which provide the basis for the deposit amount required for each merchant. For the duration of our relationship with each merchant, we hold their reserve deposits with major financial institutions. We hold these funds in separate accounts and are fully offset by corresponding liabilities. The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands): September 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 178,367 $ 176,633 $ 219,368 $ 218,525 Merchant reserve assets/liabilities 15,004 15,004 19,285 19,285 Total $ 193,371 $ 191,637 $ 238,653 $ 237,810 |
Short-term Investments and Other Financial Instruments | Financial Instruments . Our financial instruments as of September 30, 2023 and December 31, 2022 include cash and cash equivalents, short-term investments, settlement and merchant reserve assets and liabilities, accounts receivable, accounts payable, and debt. Due to their short maturities, the carrying amounts of cash equivalents, settlement and merchant reserve assets and liabilities, accounts receivable, and accounts payable approximate their fair value. Our short-term investments and certain of our cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. 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): September 30, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 5,457 $ - $ 5,457 $ 5,318 $ - $ 5,318 Short-term investments: Asset-backed securities - - - - 71 71 Total $ 5,457 $ - $ 5,457 $ 5,318 $ 71 $ 5,389 Valuation inputs used to measure the fair values of our money market funds were derived from quoted market prices. The fair values of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. 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): September 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 2023 Convertible Notes (par value) $ 425,000 $ 414,694 $ - $ - 2021 Credit Agreement (carrying value including Term Loan 135,000 135,000 140,625 140,625 Revolver 15,000 15,000 275,000 275,000 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 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 the quarters and nine months ended September 30, 2023 and 2022 were as follows (in thousands): Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SaaS and related solutions $ 250,777 $ 238,614 $ 764,253 $ 704,303 Software and services 23,578 23,123 73,235 61,627 Maintenance 12,513 11,571 34,446 33,946 Total revenue $ 286,868 $ 273,308 $ 871,934 $ 799,876 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for the quarters and nine months ended September 30, 2023 and 2022, as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Americas (principally the U.S.) 86 % 86 % 86 % 85 % Europe, Middle East, and Africa 9 % 10 % 10 % 11 % Asia Pacific 5 % 4 % 4 % 4 % Total revenue 100 % 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in other industry markets including retail, healthcare, financial services, insurance, and government entities. Revenue by customer vertical for the quarters and nine months ended September 30, 2023 and 2022, as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Broadband/Cable/Satellite 53 % 55 % 53 % 55 % Telecommunications 20 % 20 % 20 % 19 % Other 27 % 25 % 27 % 26 % Total revenue 100 % 100 % 100 % 100 % |
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): September 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 178,367 $ 176,633 $ 219,368 $ 218,525 Merchant reserve assets/liabilities 15,004 15,004 19,285 19,285 Total $ 193,371 $ 191,637 $ 238,653 $ 237,810 |
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): September 30, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 5,457 $ - $ 5,457 $ 5,318 $ - $ 5,318 Short-term investments: Asset-backed securities - - - - 71 71 Total $ 5,457 $ - $ 5,457 $ 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): September 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 2023 Convertible Notes (par value) $ 425,000 $ 414,694 $ - $ - 2021 Credit Agreement (carrying value including Term Loan 135,000 135,000 140,625 140,625 Revolver 15,000 15,000 275,000 275,000 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Goodwill. The changes in the carrying amount of goodwill for the nine months ended September 30, 2023 were as follows (in thousands): January 1, 2023, balance $ 304,036 Adjustments related to prior acquisitions ( 20 ) Impairment charge related to Keydok, LLC ( 1,118 ) Effects of changes in foreign currency exchange rates 98 September 30, 2023, balance $ 302,996 See Notes 5 and 6 for further discussion of management's decision to shut down Keydok, LLC ("Keydok") resulting in the impairment charge recorded above. |
Summary of Carrying Value of Assets | As of September 30, 2023 and December 31, 2022, the carrying values of these assets were as follows (in thousands): September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Acquired customer contracts $ 165,422 $ ( 127,490 ) $ 37,932 $ 165,497 $ ( 120,080 ) $ 45,417 Software 176,192 ( 159,451 ) 16,741 173,111 ( 150,337 ) 22,774 Total other intangible assets $ 341,614 $ ( 286,941 ) $ 54,673 $ 338,608 $ ( 270,417 ) $ 68,191 |
Summary of Carrying Values of Customer Contract Cost Assets | Customer Contract Costs . As of September 30, 2023 and December 31, 2022, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands): September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Customer contract costs $ 91,510 $ ( 38,174 ) $ 53,336 $ 85,336 $ ( 30,601 ) $ 54,735 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Our long-term debt, as of September 30, 2023 and December 31, 2022, was as follows (in thousands): September 30, 2023 December 31, 2022 2023 Convertible Notes: 2023 Convertible Notes – senior unsecured convertible notes, due September 15, 2028 , cash interest at 3.875 % $ 425,000 $ - Less – deferred financing costs ( 13,864 ) - 2023 Convertible Notes, net of unamortized discounts 411,136 - 2021 Credit Agreement: 2021 Term Loan, due September 2026 , interest at adjusted SOFR plus 7.115 % at September 30, 2023) 135,000 140,625 Less – deferred financing costs ( 2,638 ) ( 2,656 ) 2021 Term Loan, net of unamortized discounts 132,362 137,969 $ 450 million revolving loan facility, due September 2026 , interest at adjusted 7.115 % at September 30, 2023) 15,000 275,000 Total debt, net of unamortized discounts 558,498 412,969 Current portion of long-term debt, net of unamortized discounts ( 22,500 ) ( 37,500 ) Long-term debt, net of unamortized discounts $ 535,998 $ 375,469 |
Restructuring and Reorganizat_2
Restructuring and Reorganization Charges (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity in Business Restructuring and Reorganization Reserves | The activity in the restructuring and reorganization reserves during the nine months ended September 30, 2023 was as follows (in thousands): Termination Benefits Other Total January 1, 2023, balance $ 2,491 $ - $ 2,491 Charged to expense during period 3,801 4,620 8,421 Cash payments ( 6,570 ) ( 4,407 ) ( 10,977 ) Adjustment for asset impairment - ( 1,675 ) ( 1,675 ) Adjustment for gain on lease modifications - 4,349 4,349 Adjustment for accelerated depreciation - ( 394 ) ( 394 ) Other 688 - 688 September 30, 2023, balance $ 410 $ 2,493 $ 2,903 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Basic and Diluted EPS Denominators | The reconciliation of the basic and diluted EPS denominators related to common shares is included in the following table (in thousands): Quarter Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Basic weighted-average common shares 30,097 30,941 30,381 31,219 Dilutive effect of restricted common stock 187 218 159 268 Diluted weighted-average common shares 30,284 31,159 30,540 31,487 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. |
Stockholders' Equity and Equi_2
Stockholders' Equity and Equity Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Summary of Unvested Restricted Common Stock Activity | A summary of our unvested restricted common stock activity during the quarter and nine months ended September 30, 2023 is as follows (shares in thousands): Quarter Ended Nine Months Ended September 30, 2023 September 30, 2023 Shares Weighted- Shares Weighted- Unvested awards, beginning 1,334 $ 53.44 1,147 $ 53.34 Awards granted 13 53.29 701 51.69 Awards forfeited/cancelled ( 69 ) 53.07 ( 99 ) 53.30 Awards vested ( 9 ) 53.17 ( 480 ) 50.30 Unvested awards, ending 1,269 $ 53.46 1,269 $ 53.46 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Aggregate amount of transaction price allocated to remaining performance obligations | $ 1,500,000 | $ 1,500,000 | |||
Remaining performance obligations expected to be recognized, year | 2036 | 2036 | |||
Deferred revenue recognized | $ 7,800 | $ 7,600 | $ 39,300 | $ 47,900 | |
Restricted cash | 1,200 | 1,200 | $ 1,000 | ||
Proceeds from sale/maturity of short-term investments | 71 | $ 27,447 | |||
Short-term investments | $ 0 | $ 0 | $ 71 | ||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Holding period of settlement and merchant reserve assets and liabilities | 1 day | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Holding period of settlement and merchant reserve assets and liabilities | 4 days | ||||
Short-term investment contractual maturities | 2 years | ||||
Revenue Management Solution Customer Contracts [Member] | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Future revenue including variable consideration, contractual terms ending, year | 2023 | ||||
Revenue Management Solution Customer Contracts [Member] | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Future revenue including variable consideration, contractual terms ending, year | 2036 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | Sep. 30, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, percentage | 65% |
Remaining performance obligations expected to be recognized, period | 2025 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Revenue Disaggregated by Revenue Type, Geographic Region and Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 286,868 | $ 273,308 | $ 871,934 | $ 799,876 |
Percentage of total revenue | 100% | 100% | 100% | 100% |
Broadband/Cable/Satellite | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 53% | 55% | 53% | 55% |
Telecommunications | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 20% | 20% | 20% | 19% |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 27% | 25% | 27% | 26% |
Americas (principally the U.S.) | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 86% | 86% | 86% | 85% |
Europe, Middle East and Africa | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 9% | 10% | 10% | 11% |
Asia Pacific | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 5% | 4% | 4% | 4% |
SaaS and Related Solutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 250,777 | $ 238,614 | $ 764,253 | $ 704,303 |
Software and Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 23,578 | 23,123 | 73,235 | 61,627 |
Maintenance | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 12,513 | $ 11,571 | $ 34,446 | $ 33,946 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Settlement and Merchant Reserve Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Settlement And Merchant Reserve Assets And Liabilities [Abstract] | |||
Settlement assets | $ 178,367 | $ 219,368 | |
Merchant reserve assets | 15,004 | 19,285 | |
Total | 193,371 | 238,653 | $ 172,609 |
Settlement liabilities | 176,633 | 218,525 | |
Merchant reserve liabilities | 15,004 | 19,285 | |
Total | $ 191,637 | $ 237,810 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Assets fair value | $ 5,457 | $ 5,389 |
Cash equivalents | Money Market Funds | ||
Assets: | ||
Assets fair value | 5,457 | 5,318 |
Short-term Investments | Asset-backed securities | ||
Assets: | ||
Assets fair value | 71 | |
Level 1 | ||
Assets: | ||
Assets fair value | 5,457 | 5,318 |
Level 1 | Cash equivalents | Money Market Funds | ||
Assets: | ||
Assets fair value | 5,457 | 5,318 |
Level 2 | ||
Assets: | ||
Assets fair value | $ 0 | 71 |
Level 2 | Short-term Investments | Asset-backed securities | ||
Assets: | ||
Assets fair value | $ 71 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Carrying Value and Estimated Fair Value of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
2021 Credit Agreement | 2021 Term Loan | ||
Carrying value and estimated fair value of debt | ||
Fair Value | $ 135,000 | $ 140,625 |
Carrying Value | 135,000 | 140,625 |
2021 Credit Agreement | Revolving Loan | ||
Carrying value and estimated fair value of debt | ||
Fair Value | 15,000 | 275,000 |
Carrying Value | 15,000 | $ 275,000 |
2023 Convertible Notes | ||
Carrying value and estimated fair value of debt | ||
Fair Value | 414,694 | |
Carrying Value | $ 425,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill RollForward | |
Beginning balance | $ 304,036 |
Adjustments related to prior acquisitions | (20) |
Impairment charge related to Keydok, LLC | (1,118) |
Effects of changes in foreign currency exchange rates | 98 |
Ending balance | $ 302,996 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Carrying Value of Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 341,614 | $ 338,608 |
Accumulated Amortization | (286,941) | (270,417) |
Net Amount | 54,673 | 68,191 |
Acquired customer contracts | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 165,422 | 165,497 |
Accumulated Amortization | (127,490) | (120,080) |
Net Amount | 37,932 | 45,417 |
Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 176,192 | 173,111 |
Accumulated Amortization | (159,451) | (150,337) |
Net Amount | $ 16,741 | $ 22,774 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | $ 6.4 | $ 6.9 | $ 19.5 | $ 21.8 |
Estimated total amortization expense 2023 | 25.7 | 25.7 | ||
Estimated total amortization expense 2024 | 15.8 | 15.8 | ||
Estimated total amortization expense 2025 | 11.3 | 11.3 | ||
Estimated total amortization expense 2026 | 7.8 | 7.8 | ||
Estimated total amortization expense 2027 | 3.1 | 3.1 | ||
Customer contract costs | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | $ 5 | $ 3.8 | $ 14.4 | $ 14.2 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Carrying Values of Customer Contract Cost Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Capitalized Contract Cost [Abstract] | ||
Customer contract costs, Gross Carrying Amount | $ 91,510 | $ 85,336 |
Customer contract costs, Accumulated Amortization | (38,174) | (30,601) |
Customer contract costs, Net Amount | $ 53,336 | $ 54,735 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument Line Items | ||
Total debt, net of unamortized discounts | $ 558,498 | $ 412,969 |
Current portion of long-term debt, net of unamortized discounts | (22,500) | (37,500) |
Long-term debt, net of unamortized discounts | 535,998 | 375,469 |
2021 Credit Agreement | Revolving Loan | ||
Debt Instrument Line Items | ||
Total long-term debt, gross | 15,000 | 275,000 |
Revolving loan facility | 15,000 | 275,000 |
2021 Credit Agreement | 2021 Term Loan | ||
Debt Instrument Line Items | ||
Total long-term debt, gross | 135,000 | 140,625 |
Less – deferred financing costs | (2,638) | (2,656) |
Total debt, net of unamortized discounts | 132,362 | 137,969 |
2023 Convertible Notes | ||
Debt Instrument Line Items | ||
Total long-term debt, gross | 425,000 | |
Less – deferred financing costs | (13,864) | 0 |
Total debt, net of unamortized discounts | 411,136 | 0 |
2023 Senior Unsecured Convertible Notes | ||
Debt Instrument Line Items | ||
Total long-term debt, gross | $ 425,000 | $ 0 |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Details) | 1 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
2023 Convertible Notes | ||
Debt Instrument Line Items | ||
Interest rate on senior convertible notes | 3.875% | 3.875% |
Maturity period | Sep. 15, 2028 | |
2021 Credit Agreement | 2021 Term Loan | ||
Debt Instrument Line Items | ||
Combined interest rate | 7.115% | |
Maturity period | Sep. 30, 2026 | |
2021 Credit Agreement | Revolving Loan | ||
Debt Instrument Line Items | ||
Combined interest rate | 7.115% | |
Amount available under credit facility | $ 450,000,000 | $ 450,000,000 |
Maturity period | Sep. 30, 2026 | |
2023 Senior Unsecured Convertible Notes | ||
Debt Instrument Line Items | ||
Interest rate on senior convertible notes | 3.875% | 3.875% |
Maturity period | Sep. 15, 2028 |
Debt - 2023 Convertible Notes (
Debt - 2023 Convertible Notes (Details Textual) $ / shares in Units, shares in Thousands | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2023 USD ($) Tradingday $ / shares shares | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Cash payments for Convertible Notes | $ (34,298,000) | $ 0 | |
Net financing cost | 13,518,000 | 0 | |
Cash payments on Revolving Loan | 310,625,000 | $ 247,926,000 | |
2023 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 425,000,000 | $ 425,000,000 | |
Interest rate on senior convertible notes | 3.875% | 3.875% | |
Maturity period | Sep. 15, 2028 | ||
Initial conversion rate of common stock | 14.0753 | ||
Convertible Notes, initial conversion of Par Value Convertible Notes to common stock | $ 1,000,000 | ||
Initial conversion price | $ / shares | $ 71.05 | $ 71.05 | |
Debt instrument, premium percentage | 80% | ||
Initial conversion rate | $ / shares | $ 0.28 | $ 0.28 | |
Redemption period | Sep. 21, 2026 | ||
Trading days | Tradingday | 20 | ||
Consecutive trading days | Tradingday | 30 | ||
Cash payments for Convertible Notes | $ 34,300,000 | $ 34,300,000 | |
Net deferred income tax | 7,900,000 | 7,900,000 | |
Net financing cost | 14,000,000 | ||
Proceeds from the sale of the 2023 Notes | $ 411,000,000 | ||
2023 Convertible Notes | Common Stock | |||
Debt Instrument [Line Items] | |||
Number of shares issuable upon conversion | shares | 5,980 | ||
Number of common stock repurchased | shares | 1,700 | ||
Amount of common stock repurchased | $ 90,100,000 | ||
2023 Convertible Notes | Minimum | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 100,000,000 | $ 100,000,000 | |
Conversion price | 130% | ||
2023 Convertible Notes | Call Option [Member] | |||
Debt Instrument [Line Items] | |||
Initial conversion price | $ / shares | $ 96.52 | $ 96.52 | |
2021 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Net financing cost | $ 500,000 | ||
2021 Credit Agreement | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity period | Sep. 30, 2026 | ||
Cash payments on Revolving Loan | $ 275,000,000 | ||
Credit Facility, current borrowing outstanding | $ 450,000,000 | $ 450,000,000 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument Line Items | ||
Cash payments on Revolving Loan | $ 310,625 | $ 247,926 |
Net financing cost | 13,518 | $ 0 |
2021 Credit Agreement | ||
Debt Instrument Line Items | ||
Net financing cost | $ 500 | |
2021 Credit Agreement | Minimum | ||
Debt Instrument Line Items | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.15% | |
2021 Credit Agreement | Maximum | ||
Debt Instrument Line Items | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.325% | |
2021 Credit Agreement | SOFR [Member] | Minimum | ||
Debt Instrument Line Items | ||
Basis spread | 1.375% | |
2021 Credit Agreement | SOFR [Member] | Maximum | ||
Debt Instrument Line Items | ||
Basis spread | 2.125% | |
2021 Credit Agreement | Base Rate | Minimum | ||
Debt Instrument Line Items | ||
Basis spread | 0.375% | |
2021 Credit Agreement | Base Rate | Maximum | ||
Debt Instrument Line Items | ||
Basis spread | 1.125% | |
2021 Credit Agreement | Revolving Loan | ||
Debt Instrument Line Items | ||
Cash payments on Revolving Loan | $ 275,000 | |
Basis spread | 1.625% | |
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | |
Line of credit facility, remaining borrowing capacity | $ 435,000 | |
Combined interest rate | 7.115% | |
Credit Facility, current borrowing outstanding | $ 15,000 | |
2021 Credit Agreement | Revolving Loan | SOFR [Member] | ||
Debt Instrument Line Items | ||
SOFR, spread adjustment | 0.10% | |
2021 Credit Agreement | 2021 Term Loan | ||
Debt Instrument Line Items | ||
Carrying value of debt | $ 150,000 | |
Term loan period | 5 years | |
Cash payments on Revolving Loan | $ 5,600 | |
Basis spread | 1.625% | |
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | |
Combined interest rate | 7.115% | |
2021 Credit Agreement | 2021 Term Loan | SOFR [Member] | ||
Debt Instrument Line Items | ||
SOFR, spread adjustment | 0.10% | |
2021 Credit Agreement | Term SOFR Loans | ||
Debt Instrument Line Items | ||
Basis spread | 0.10% | |
2023 Convertible Notes | ||
Debt Instrument Line Items | ||
Carrying value of debt | $ 425,000 | |
Net financing cost | 14,000 | |
2023 Convertible Notes | Minimum | ||
Debt Instrument Line Items | ||
Carrying value of debt | $ 100,000 | |
2023 Convertible Notes | Revolving Loan | ||
Debt Instrument Line Items | ||
Term loan period | 5 years |
Debt - 2016 Convertible Notes (
Debt - 2016 Convertible Notes (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument Line Items | |||
Net carrying value | $ 22,500 | $ 37,500 | |
Cash payments on Revolving Loan | $ 310,625 | $ 247,926 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - DGIT Systems Pty Ltd - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2023 | Sep. 30, 2023 | |
Business Acquisition [Line Items] | ||
Potential future earn out payments | $ 13 | |
Business acquisition date | Oct. 04, 2021 | |
Percentage of acquired of equity | 100% | |
Business acquisition, purchase price | $ 16 | |
Business acquisition, payment | 14 | |
Business acquisition, remaining consideration | 2 | |
Business combination consideration paid | $ 1.2 | |
Business combination earn-out acheived and paid out | $ 0.3 |
Restructuring and Reorganizat_3
Restructuring and Reorganization Charges (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Employees Properties | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and reorganization charges | $ 1,152 | $ 14,193 | $ 8,421 | $ 46,304 | |
Impairment charges | 1,689 | 30,126 | |||
Restructuring and reorganization reserves | 2,903 | $ 2,903 | $ 2,491 | ||
Numbrer of real estate | Properties | 3 | ||||
Gain on lease modifications | $ 4,349 | $ 0 | |||
Operating lease right-of-use asset impairments | 500 | ||||
Cash payments | 10,977 | ||||
Current Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and reorganization reserves | $ 2,900 | 2,900 | |||
Termination Benefits Related to Organizational Changes | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and reorganization charges | $ 2,200 | ||||
Reduced workforce | Employees | 82 | ||||
Shut-down of Keydok business | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and reorganization charges | $ 1,600 | ||||
Reduced workforce | Employees | 30 | ||||
Impairment charges | $ 1,200 | ||||
Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges Incurred | 3,600 | ||||
Cash payments | 1,800 | ||||
Restructuring Reserve Accrued | $ 1,800 |
Restructuring and Reorganizat_4
Restructuring and Reorganization Charges - Schedule of Activity in Business Restructuring and Reorganization Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | $ 2,491 | |||
Charged to expense during period | $ 1,152 | $ 14,193 | 8,421 | $ 46,304 |
Cash payments | (10,977) | |||
Adjustment for asset impairment | (1,675) | |||
Adjustment for gain on lease modifications | 4,349 | $ 0 | ||
Adjustment for accelerated depreciation | (394) | |||
Other | 688 | |||
Ending Balance | 2,903 | 2,903 | ||
Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 2,491 | |||
Charged to expense during period | 3,801 | |||
Cash payments | (6,570) | |||
Other | 688 | |||
Ending Balance | 410 | 410 | ||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charged to expense during period | 4,620 | |||
Cash payments | (4,407) | |||
Adjustment for asset impairment | (1,675) | |||
Adjustment for gain on lease modifications | 4,349 | |||
Adjustment for accelerated depreciation | (394) | |||
Ending Balance | $ 2,493 | $ 2,493 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Other Commitments [Line Items] | ||
Restricted assets used to collateralize guarantees | $ 1.9 | |
Restricted assets used to cash and cash equivalents | 1.2 | $ 1 |
Money transmitter bonds | $ 19.9 | |
Warranty Period | 90 days | |
Surety And Money Transmitter Bonds | ||
Other Commitments [Line Items] | ||
Restricted assets used to collateralize guarantees | $ 4.3 | |
Other Non-current Assets | ||
Other Commitments [Line Items] | ||
Restricted assets used to collateralize guarantees | $ 0.7 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation of the Basic and Diluted EPS Denominators (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of the basic and diluted EPS denominators | ||||
Basic weighted-average common shares | 30,097 | 30,941 | 30,381 | 31,219 |
Dilutive effect of restricted common stock | 187 | 218 | 159 | 268 |
Diluted weighted-average common shares | 30,284 | 31,159 | 30,540 | 31,487 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details Textual) - $ / shares | Sep. 30, 2023 | Dec. 31, 2014 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Common stock warrants issued, per warrant | $ 26.68 | |
Common Stock Warrants | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Common stock warrants issued, per warrant | $ 26.68 |
Stockholders' Equity and Equi_3
Stockholders' Equity and Equity Compensation Plans (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Aug. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2014 | |
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Accrued excise tax | $ 900 | $ 900 | $ 900 | ||||
Remaining number of shares available for repurchase | 100,000 | 100,000 | 100,000 | 100,000 | |||
Remaining authorized repurchase amount | $ 100,000 | ||||||
Repurchase of common stock for employee tax withholdings, shares | 3,000 | 7,000 | 171,000 | 132,000 | |||
Repurchase of common stock for tax withholdings, value | $ 100 | $ 400 | $ 9,600 | $ 8,400 | |||
Cash dividends declared per common share | $ 0.28 | $ 0.265 | |||||
Cash dividend | $ 8,700 | $ 8,400 | $ 26,400 | 25,400 | |||
Stock warrants term | 10 years | ||||||
Stock warrants, exercise price | $ 26.68 | ||||||
Performance based awards granted to executive management and certain key employees shares | 134,000 | ||||||
Vesting maturity date | first quarter of 2025 | ||||||
Vesting period | 2 years | ||||||
Stock-based compensation expense | $ 7,200 | $ 8,700 | $ 21,253 | $ 20,778 | |||
Market-based Awards | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Awards vested | 45,000 | ||||||
Restricted common stock | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Awards vested | 9,000 | 480,000 | |||||
Restricted common stock | Minimum | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Vesting period | 2 years | ||||||
Restricted common stock | Maximum | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Vesting period | 3 years | ||||||
Comcast | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Issuance of stock warrants | 2,900,000 | ||||||
Stock warrants issued | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Stock warrants vested | 0 | ||||||
SEC Rule 10b5-1 Plan | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Repurchase of common stock, shares | 275,000 | 1,991,000 | 488,000 | 1,991,000 | 1,114,000 | ||
Total amount paid | $ 15,000 | $ 107,000 | $ 27,900 | $ 107,000 | $ 65,500 | ||
Weighted-average price per share | $ 54.65 | $ 53.73 | $ 57.27 | $ 53.73 | $ 58.8 | ||
2023 Convertible Notes | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Repurchase of common stock, shares | 1,680,000 | ||||||
Total amount paid | $ 90,100 | ||||||
Weighted-average price per share | $ 53.62 | ||||||
Second SEC Rule 10b5-1 Plan | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Repurchase of common stock, shares | 36,000 | ||||||
Total amount paid | $ 1,900 | ||||||
Weighted-average price per share | $ 52.13 | ||||||
Remaining authorized repurchase amount | $ 100,000 | $ 100,000 | $ 100,000 | ||||
2005 Stock Incentive Plan | |||||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||||
Increase in number of common stock shares authorized and reserved for issuance | 2,900,000 | ||||||
Number of common stock shares authorized and reserved for issuance | 27,900,000 |
Stockholders' Equity and Equi_4
Stockholders' Equity and Equity Compensation Plans - Summary of Unvested Restricted Common Stock Activity (Details) - Restricted common stock - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Shares | ||
Shares, Unvested awards, beginning balance | 1,334 | 1,147 |
Shares, Awards granted | 13 | 701 |
Shares, Awards forfeited/cancelled | (69) | (99) |
Shares, Awards vested | (9) | (480) |
Shares, Unvested awards, ending balance | 1,269 | 1,269 |
Weighted-Average Grant Date Fair Value | ||
Weighted-Average Grant Date Fair Value, Unvested awards, beginning balance | $ 53.44 | $ 53.34 |
Weighted-Average Grant Date Fair Value, Awards granted | 53.29 | 51.69 |
Weighted-Average Grant Date Fair Value, Awards forfeited/cancelled | 53.07 | 53.3 |
Weighted-Average Grant Date Fair Value, Awards vested | 53.17 | 50.3 |
Weighted-Average Grant Date Fair Value, Unvested awards, ending balance | $ 53.46 | $ 53.46 |