Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | Paymentus Holdings, Inc. | |
Entity Central Index Key | 0001841156 | |
Entity File Number | 001-40429 | |
Entity Tax Identification Number | 45-3188251 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 11605 North Community House Road | |
Entity Address Address Line2 | Suite 300 | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28277 | |
City Area Code | 888 | |
Local Phone Number | 440-4826 | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | PAY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock Shares Outstanding | 21,905,543 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock Shares Outstanding | 102,266,586 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 180,138 | $ 179,361 |
Restricted cash and cash equivalents | 4,014 | 3,834 |
Accounts and other receivables, net of allowance for expected credit losses of $399 and $435, respectively | 84,178 | 76,389 |
Income tax receivable | 20 | 259 |
Prepaid expenses and other current assets | 11,293 | 10,505 |
Total current assets | 279,643 | 270,348 |
Property and equipment, net | 1,575 | 1,558 |
Capitalized internal-use software development costs, net | 61,767 | 58,787 |
Intangible assets, net | 25,137 | 27,158 |
Goodwill | 131,850 | 131,860 |
Operating lease right-of-use assets | 9,477 | 10,027 |
Deferred tax asset | 91 | 94 |
Other long-term assets | 4,435 | 5,031 |
Total assets | 513,975 | 504,863 |
Current liabilities | ||
Accounts payable | 41,097 | 35,182 |
Accrued liabilities | 12,334 | 21,301 |
Current portion of operating lease liabilities | 1,966 | 1,853 |
Contract liabilities | 4,097 | 4,089 |
Income tax payable | 3,132 | 363 |
Total current liabilities | 62,626 | 62,788 |
Deferred tax liability | 1,159 | 1,067 |
Operating lease liabilities, less current portion | 8,054 | 8,661 |
Contract liabilities, less current portion | 2,752 | 2,731 |
Total liabilities | 74,591 | 75,247 |
Stockholders’ equity | ||
Preferred stock, $0.0001 par value per share, 5,000,000 shares authorized as of March 31, 2024 and December 31, 2023, respectively; none issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 0 | 0 |
Additional paid-in capital | 380,357 | 377,773 |
Accumulated other comprehensive income | 45 | 87 |
Retained earnings | 58,970 | 51,744 |
Total stockholders’ equity | 439,384 | 429,616 |
Total liabilities and stockholders' equity | 513,975 | 504,863 |
Class A Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock, Value, Issued | 2 | 2 |
Class B Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock, Value, Issued | $ 10 | $ 10 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Allowance for accounts and other receivables | $ 399 | $ 435 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 883,950,000 | 883,950,000 |
Common stock, shares issued | 21,744,165 | 20,758,603 |
Common stock, shares outstanding | 21,744,165 | 20,758,603 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 111,050,000 | 111,050,000 |
Common stock, shares issued | 102,381,811 | 103,062,508 |
Common stock, shares outstanding | 102,381,811 | 103,062,508 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 184,875 | $ 148,328 |
Cost of revenue | 132,150 | 108,250 |
Gross profit | 52,725 | 40,078 |
Operating expenses | ||
Research and development | 12,051 | 11,653 |
Sales and marketing | 23,239 | 20,264 |
General and administrative | 9,092 | 9,145 |
Total operating expenses | 44,382 | 41,062 |
Income (loss) from operations | 8,343 | (984) |
Other income (expense) | ||
Interest income, net | 2,186 | 1,440 |
Other non-recurring income | 213 | 0 |
Foreign exchange gain (loss) | 18 | (8) |
Income before income taxes | 10,760 | 448 |
(Provision for) benefit from income taxes | (3,534) | 256 |
Net income | $ 7,226 | $ 704 |
Net income per share | ||
Basic | $ 0.06 | $ 0.01 |
Diluted | $ 0.06 | $ 0.01 |
Weighted-average number of shares used to compute net income per share | ||
Basic | 123,945,778 | 123,289,584 |
Diluted | 126,917,654 | 123,792,741 |
Net Income (Loss) | $ 7,226 | $ 704 |
Foreign currency translation adjustments, net of tax | (42) | (7) |
Comprehensive income | $ 7,184 | $ 697 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-In-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2022 | $ 397,179 | $ 12 | $ 367,767 | $ 29,422 | $ (22) |
Beginning balance (in shares) at Dec. 31, 2022 | 123,241,173 | ||||
Stock-based compensation | 2,159 | 2,159 | |||
Issuance of Class A common stock for stock-based awards( value) | 5 | 5 | |||
Issuance of Class A common stock for stock-based awards ( shares) | 104,991 | ||||
Other comprehensive income (loss) | (7) | (7) | |||
Net Income (Loss) | 704 | 704 | |||
Ending balance at Mar. 31, 2023 | 400,040 | $ 12 | 369,931 | 30,126 | (29) |
Ending balance (in shares) at Mar. 31, 2023 | 123,346,164 | ||||
Beginning balance at Dec. 31, 2023 | 429,616 | $ 12 | 377,773 | 51,744 | 87 |
Beginning balance (in shares) at Dec. 31, 2023 | 123,821,111 | ||||
Stock-based compensation | 2,484 | 2,484 | |||
Issuance of Class A common stock for stock-based awards( value) | 100 | 100 | |||
Issuance of Class A common stock for stock-based awards ( shares) | 304,865 | ||||
Other comprehensive income (loss) | (42) | (42) | |||
Net Income (Loss) | 7,226 | 7,226 | |||
Ending balance at Mar. 31, 2024 | $ 439,384 | $ 12 | $ 380,357 | $ 58,970 | $ 45 |
Ending balance (in shares) at Mar. 31, 2024 | 124,125,976 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income | $ 7,226 | $ 704 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 8,537 | 7,239 |
Deferred income taxes | 92 | 92 |
Stock-based compensation | 2,933 | 2,159 |
Non-cash lease expense | 506 | 462 |
Amortization of contract asset | 451 | 696 |
Provision for (benefit from) expected credit losses | 48 | (239) |
Other non-recurring income | (213) | 0 |
Change in operating assets and liabilities | ||
Accounts and other receivables | (7,850) | (8,333) |
Prepaid expenses and other current and long-term assets | (993) | 861 |
Accounts payable | 5,793 | 3,297 |
Accrued liabilities | (8,166) | (2,749) |
Operating lease liabilities | (446) | (469) |
Contract liabilities | 28 | 2,061 |
Income taxes receivable, net of payable | 3,008 | (1,018) |
Net cash provided by operating activities | 10,954 | 4,763 |
Cash flows from investing activities | ||
Purchases of property and equipment | (116) | (67) |
Purchase of interest-bearing deposits | (723) | 0 |
Proceeds from matured interest-bearing deposits | 602 | 0 |
Capitalized internal-use software development costs | (9,276) | (8,219) |
Net cash used in investing activities | (9,513) | (8,286) |
Cash flows from financing activities | ||
Proceeds from exercise of stock-based awards | 100 | 5 |
Settlement of holdback liability related to prior acquisitions | (506) | 0 |
Payments on other financing obligations | 0 | (1,025) |
Payments on finance leases | 0 | (102) |
Net cash provided (used in) by financing activities | (406) | (1,122) |
Effect of exchange rate changes on Cash and cash equivalents and Restricted cash | (78) | (17) |
Net increase (decrease) in cash, cash equivalents and Restricted cash | 957 | (4,662) |
Cash, cash equivalents and restricted cash | ||
Cash and cash equivalents and Restricted cash at beginning of period | 183,195 | 149,685 |
Cash and cash equivalents and Restricted cash at end of period | 184,152 | 145,023 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds | 434 | 616 |
Non-cash investing activities: | ||
Property and equipment purchases in accounts payable | 87 | 119 |
Software purchases in accounts payable | 16 | 0 |
Right-of-use assets obtained in exchange of operating lease obligations | 97 | 1,356 |
Cash and Cash Equivalents [Member] | ||
Cash, cash equivalents and restricted cash | ||
Cash and cash equivalents and Restricted cash at beginning of period | 179,361 | 147,334 |
Cash and cash equivalents and Restricted cash at end of period | 180,138 | 143,637 |
Restricted Cash [Member] | ||
Cash, cash equivalents and restricted cash | ||
Cash and cash equivalents and Restricted cash at beginning of period | 3,834 | 2,351 |
Cash and cash equivalents and Restricted cash at end of period | $ 4,014 | $ 1,386 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 7,226 | $ 704 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Description of Business Paymentus Holdings, Inc. and its wholly owned subsidiaries (“Paymentus” or the “Company”) provides electronic bill presentment and payment services, enterprise customer communication and self-service revenue management to billers through a Software-as-a-Service (“SaaS”), secure, omni-channel technology platform. The platform seamlessly integrates into a biller’s core financial and operating systems to provide flexible and secure access to payment processing of credit cards, debit cards, eChecks and digital wallets across a significant number of channels including online, mobile, IVR, call center, chatbot and voice-based assistants. Paymentus was incorporated in the state of Delaware on September 2, 2011 with office locations in Ch arlotte, North Carolina, Dallas, Texas, Richmond Hill, Ontario (Canada), and Delhi and Bangalore (India). The Company is headquartered in Charlotte, North Carolina. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company's Form 10-K for the year ended December 31, 2023 filed with the SEC on March 5, 2024 (the “2023 Form 10-K”). These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of operations and comprehensive income, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three months ended March 31, 2024 and 2023 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and balances have been eliminated upon consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition, cost of revenue recognition, the allowance for credit losses, the lives of tangible and intangible assets, the valuation of acquired intangible assets and the recoverability or impairment of intangible assets, including goodwill, internal-use software development costs, valuation of stock warrants issued, stock-based compensation, and accounting for income taxes. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates. Custodial Accounts The Company has established a relationship with its merchant processors to act as collection and paying agents, whereby a merchant processor receives funds from customers and forwards such funds to the respective Paymentus client, based on the instructions received from the Company. These merchant processors act as custodians of the cash received, and the Company has no legal ownership rights to the funds held in such custodial accounts and does not control the use of these funds. As the Company does not take ownership of the funds, these custodial accounts are not included in the Company’s consolidated balance sheets. The balance of cash in the custodial accounts held by these merchant processors was $ 427.7 million and $ 510.8 million as of March 31, 2024 and December 31, 2023 , respectively. Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers and resellers to the extent of the amounts recorded in the consolidated balance sheets. No customer accounted for more than 10 % of revenue for either of the three months ended March 31, 2024 and 2023. As of December 31, 2023 , one customer accounted for more than 10 % of accounts receivable. As of March 31, 2024 , no customer accounted for more than 10 % of accounts receivable. Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to make operating decisions, allocate resources and assess performa nce. The Company has three operating segments based on geography. The United States segment represents the vast majority of the Company’s consolidated net sales and gross profit. The additional two operating segments, Canada and India, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate. None of the operating segments qualified for aggregation. The Company’s CODM is its chief executive officer. The CODM evaluates the performance of the Company’s operating segments based on revenue and gross profit. The Company does not analyze discrete segment balance sheet information related to long-term assets. All other financial information is presented on a consolidated basis. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 4 and Note 3, respectively. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 included in the 2023 Form 10-K. There have been no significant changes to these policies during the three months ended March 31, 2024 . Recently Adopted Accounting Standards The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as non-public business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below. Accounting Standards Updates ("ASU") not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The amendments in ASU 2023-07 are effective for public companies for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 "Income Tax Disclosures", which makes changes to annual disclosures of income taxes paid for all entities and requires entities to disclose the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign jurisdiction. Additionally, entities are required to disclose income taxes paid, net of refunds received, for individual jurisdictions that comprise 5% or more of total income taxes paid. The 5% threshold is evaluated using the absolute value of the net refund or net payment in each jurisdiction compared to the absolute value of the total income taxes paid (net of refunds received). ASU 2023-09 requires all entities to disclose disaggregated domestic and foreign pre-tax income (or loss) from continuing operations along with disaggregated income tax expense (or benefit) by federal, state and foreign components. Such disaggregation by jurisdiction should classify taxes by jurisdiction based on the jurisdiction imposing the taxes. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 for public companies. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures. |
Revenue, Performance Obligation
Revenue, Performance Obligations and Contract Balances | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Performance Obligations and Contract Balances | 3. Revenue, Performance Obligations and Contract Balances Disaggregation of Revenue The following table presents a disaggregation of revenue from contracts with customers (in thousands): Three Months Ended March 31, 2024 2023 Payment transaction processing revenue $ 182,752 $ 146,388 Other 2,123 $ 1,940 Total revenue $ 184,875 $ 148,328 Revenue by geographic area, based on the location of the Company’s users, was as follows (in thousands): Three Months Ended March 31, 2024 2023 United States $ 181,301 $ 145,557 Other 3,574 2,771 Total $ 184,875 $ 148,328 Remaining Performance Obligations As of March 31, 2024, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied was $ 6.8 million, of which the Company expects to recognize over 75 % within the next two years , 19 % between two to four years and the remainder thereafter. The timing of revenue recognition within the next four years is largely dependent upon the go-l ive dates of the Company's customers under the Company’s contracts. As of March 31, 2024, the Company has contractual rights under its commercial agreements with customers and resellers to receive $ 51.2 million of fixed consideration related to the future minimum guarantees through 2026. As permitted, the Company has elected to exclude from this disclosure any variable consideration that meets specified criteria. Accordingly, the total unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amount disclosed. Contract Balances Contract balances consist of the following: March 31, December 31, 2024 2023 Contract Assets Costs to fulfill (prepaid expenses and other current assets) $ 2,893 $ 2,893 Costs to fulfill (other long-term assets) 4,189 4,783 Total contract assets $ 7,082 $ 7,676 Contract Liabilities Contract liabilities, Current $ 4,097 $ 4,089 Contract liabilities, Non-current 2,752 2,731 Total contract liabilities $ 6,849 $ 6,820 During the three months ended March 31, 2024 and 2023, the Company reduced revenue as a result of amortization of related contract assets by $ 0.2 million and $ 0.7 million, respectively. Revenue recognized during the three months ended March 31, 2024 and 2023 that was included in the contract liabilities balance at the beginning of each of the periods was $ 0.9 million and $ 0.7 million, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2024 2023 Computer equipment $ 6,131 $ 6,059 Furniture and fixtures 1,793 1,715 Leasehold improvements 390 396 Total property and equipment 8,314 8,170 Less: Accumulated depreciation ( 6,739 ) ( 6,612 ) Property and equipment, net $ 1,575 $ 1,558 Depreciation expense recorded for property and equipment was $ 0.2 million and $ 0.3 million for the three months ended March 31, 2024 and 2023, respectively. Long-lived assets include property and equipment, net. The geographic locations of the Company ’s long-lived assets, net, based on physical location of the assets were as follows (in thousands): March 31, December 31, 2024 2023 United States $ 626 $ 558 Other 949 1,000 Total $ 1,575 $ 1,558 |
Goodwill, Internal-use Software
Goodwill, Internal-use Software Development Costs and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Internal-use Software Development Costs and Intangible Assets | 5. Goodwill, Internal-use Software Development Costs and Intangible Assets Goodwill The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands): United Other Total Balance as of December 31, 2023 $ 131,028 $ 832 $ 131,860 Foreign currency translation adjustments — ( 10 ) ( 10 ) Balance as of March 31, 2024 $ 131,028 $ 822 $ 131,850 Internal-use Software Development Costs During the three months ended March 31, 2024 and 2023, the Company capitalized $ 9.3 million and $ 8.1 million in software development and implementation costs, respectively. During the three months ended March 31, 2024 and 2023, the Company recorded $ 4.0 million and $ 2.7 million of amortization expense in cost of revenue, respectively, and $ 2.3 million and $ 2.0 million of amortization expense in operating expenses, respectively. Intangible Assets Intangible assets, net consisted of the following (in thousands): March 31, 2024 Gross Accumulated Net Technology $ 21,832 $ ( 15,880 ) $ 5,952 License 2,509 ( 2,509 ) — Customer relationship 31,989 ( 14,281 ) 17,708 Software 449 ( 417 ) 32 Trademark 4,038 ( 2,593 ) 1,445 Total $ 60,817 $ ( 35,680 ) $ 25,137 December 31, 2023 Gross Accumulated Net Technology $ 21,845 $ ( 14,951 ) $ 6,894 License 2,568 ( 2,568 ) — Customer relationship 32,006 ( 13,480 ) 18,526 Software 451 ( 411 ) 40 Trademark 4,038 ( 2,340 ) 1,698 Total $ 60,908 $ ( 33,750 ) $ 27,158 Amortization expense of intangible assets was $ 2.0 million and $ 2.2 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, future expected amortization expense is as follows (in thousands): Years Ending December 31, 2024 (remaining 9 months) 6,062 2025 6,620 2026 3,737 2027 3,269 2028 3,269 Thereafter 2,180 Total future amortization expense $ 25,137 There were no impairments of goodwill, internal-use software development costs or intangible assets in the three months ended March 31, 2024 and 2023 . |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | 6. Accrued Liabilities The composition of accrued liabilities is as follows (in thousands): March 31, December 31, 2024 2023 Payroll and employee-related expenses $ 7,610 $ 15,455 Other accrued liabilities 4,724 5,846 Total $ 12,334 $ 21,301 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Other Commitments The Company has entered into certain non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. Obligations under contracts that are cancellable or with remaining terms of 12 months or less are not included. There have been no material changes to the Company's contractual obligations or commitments outside of the ordinary course of business as compared to those described in the 2023 Form 10-K. Legal Matters The Company is involved from time to time in various claims and legal proceedings arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that, as of March 31, 2024, no current claims and legal proceedings will have a material adverse effect on its financial position, results of operations, or cash flows. Indemnification The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers, and the Company’s officers, directors, and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims due to the Company’s activities or non-compliance with obligations or representations made by the Company. The Company seeks to limit, or cap, its indemnification exposure in its commercial and other contracts. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’ s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | 8. Equity Warrant On May 13, 2021, the Company entered into a warrant agreement with JPMC Strategic Investments I Corporation (“JPMC”), an affiliate of J.P. Morgan Securities LLC, an underwriter in our 2021 initial public offering ("IPO"), pursuant to which the Company agreed to issue a warrant to JPMC for up to 509,370 shares of Class A common stock upon completion of the IPO at an exercise price of $ 18.38 per share (the “May 2021 warrant agreement”). Upon completion of the IPO, 382,027 of the warrant shares vested and were exercisable. The vesting of the remaining 127,343 shares of Class A common stock underlying the warrant will be subject to the achievement of certain commercial milestones through December 31, 2025 pursuant to a related commercial agreement with JPMorgan Chase Bank, National Association (“JPM Chase”), an affiliate of JPMC. As discussed below, this commercial agreement was amended in August 2022, and the achievement of certain commercial milestones was extended through December 31, 2026 and minimum revenue commitments were set for each of the calendar years through 2026. As of March 31, 2024, 448,880 warrant shares were vested and exercisable under the May 2021 warrant agreement. On August 29, 2022, the Company entered into a second warrant agreement with JPMC, in connection with an amendment to the Company's existing commercial agreement with JPM Chase discussed above, pursuant to which the Company issued a warrant to JPMC for up to 684,510 shares of Class A common stock at an exercise price of $ 10.10 per share (the “August 2022 warrant agreement”). Upon signing the August 2022 warrant agreement, 171,128 of the warrant shares vested and were exercisable. The vesting of the remaining 513,382 shares of Class A common stock underlying the warrant will be subject to the achievement of certain commercial milestones through December 31, 2026 pursuant to the commercial agreement, as amended. As of March 31, 2024 there were no additional warrant shares vested under the August 2022 warrant agreement. As of March 31, 2024 , an aggregate of 620,008 warrants had vested and were exercisable under the outstanding warrant agreements. The Company accounts for the consideration payable in the form of warrants to its vendor as share based compensation expense. The warrant fair value was determined using the Black-Scholes pricing model in accordance with ASC 718, Compensation-Stock Compensation. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation In May 2021, the Company’s board of directors (the "Board") adopted, and its stockholders approved, the 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the IPO. The 2021 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code ("IRC"), to the Company’s employees and any of its parent or subsidiary corporations’ employees, and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, and performance awards to the Company’ s employees, directors and consultants and any of its parent or subsidiary corporations’ employees and consultants. A total of 10,459,000 shares of the Company ’ s Class A common stock have been reserved for issuance under the 2021 Plan in addition to (i) an annual increase of 4 % of the outstanding shares of the Company's common stock, with Class A and Class B common stock taken together, on the first day of each fiscal year, subject to the Compensation Committee of the Board exercising discretion to increase or decrease such amount (the “Evergreen Addition”), and (ii) upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock awards granted under the 2012 Equity Incentive Plan, an equal number of shares of Class A common stock, such number of shares not to exceed 7,563,990 . On January 1, 2024, pursuant to the Evergreen Addition, approximately 5.0 million shares of Class A common stock were added to the 2021 Plan issuance reserve. At March 31, 2024, there were approximately 21.7 million remaining shares available for the Company to grant under the 2021 Plan. Stock Options A summary of the Company ’s option activity during the three months ended March 31, 2024 was as follows (in thousands, except share and per share amounts): Weighted- Weighted- Average Average Remaining Aggregate Options Exercise Price Contractual Intrinsic Outstanding per Share Life (years) Value Outstanding at December 31, 2023 3,849,350 $ 7.87 5.06 $ 38,505 Options exercised ( 67,746 ) 1.44 Options forfeited ( 1,333 ) 8.66 Outstanding at March 31, 2024 3,780,271 $ 7.98 4.85 $ 55,817 Exercisable at March 31, 2024 3,732,980 $ 7.97 4.83 $ 55,161 No options were granted or expired during the three months ended March 31, 2024. Aggregate intrinsic value represents the difference between the exercise price of the options and the fair value of the Company’s common stock. Restricted Stock Units (“RSUs”) A summary of the Company ’s RSU activity during the three months ended March 31, 2024 was as follows: Weighted- Average Number of Grant Date RSUs Outstanding Fair Value Awarded and unvested at December 31, 2023 1,946,006 $ 12.74 Awards granted 995,548 19.20 Awards vested ( 235,619 ) 11.42 Awards forfeited ( 25,580 ) 9.89 Awarded and unvested at March 31, 2024 2,680,355 $ 15.28 The fair value of RSU grants is determined based upon the market closing price of the Company’ s Class A common stock on the date of grant. RSUs vest over the requisite service period, which generally ranges between four years and five years from the date of grant for employees and one to three years for directors, subject to continued employment for employees and provision of services for nonemployees. Stock-based compensation expense included in the condensed consolidated statements of operations was as follows: Three Months Ended March 31, 2024 2023 (in thousands) Cost of revenue $ 51 $ 45 Research and development 608 546 Sales and marketing 1,310 716 General and administrative 964 852 Total stock-based compensation $ 2,933 $ 2,159 At March 31, 2024, there was $ 0.1 million of total unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan, which is expected to be recognized over a remaining weighted-average period of 1.4 years. At March 31, 2024, there was $ 38.5 million of total unrecognized compensation cost related to unvested RSUs granted under the 2021 Plan, which is expected to be recognized over a remaining weighted-average period of 3.8 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company computes its tax provision for the three months ended March 31, 2024 by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjusting for discrete items arising in that quarter. The Company continues to record a valuation allowance against its net deferred tax assets (“DTA”) in the U.S. as it is not more likely than not to be realized given the significant tax deductions for stock-based compensation recognized in previous years that have created cumulative losses in recent years. The Company’s effective tax rate for the three months ended March 31, 2024 and 2023 was 32.8 % and ( 57.9 )% respectively. The difference between the Company’s effective tax rate and the U.S. federal statutory rate of 21 % in 2024 was primarily the result of permanent differences for disallowed stock-based compensation pursuant to IRC Section 162(m), state taxes and the impact of the full valuation allowance. In 2023, it was primarily the result of near break-even pre-tax income from operations, state taxes and the impact of the full valuation allowance and other permanent adjustments in addition to a return to provision benefit recorded in connection with a change in estimate of costs required to be capitalized under IRC Section 174. |
Net Income per Share Attributab
Net Income per Share Attributable to Common Stock | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income per Share Attributable to Common Stock | 11. Net Income per Share Attributable to Common Stock Basic net income per share attributable to common stock is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share attributable to common stock is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. The dilutive effect of outstanding options, RSUs and warrants is reflected in diluted net income per share attributable to common stock by application of the treasury stock method. The calculation of diluted net income per share attributable to common stock excludes all anti-dilutive common shares. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net income per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis. The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands except share and per share data): Three Months Ended March 31, 2024 2023 Numerator: Net income $ 7,226 $ 704 Denominator: Weighted-average shares of common stock — basic 123,945,778 123,289,584 Dilutive effect of stock options to purchase common stock 2,141,741 486,286 Dilutive effect of RSUs 754,844 16,871 Dilutive effect of warrants 75,291 — Weighted-average shares of common stock — diluted 126,917,654 123,792,741 Net income per share Basic $ 0.06 $ 0.01 Diluted $ 0.06 $ 0.01 The following table summarizes the weighted average securities that were excluded from the computation of diluted net income per share attributable to common stock as their inclusion would have been antidilutive: Three Months Ended March 31, 2024 2023 Stock options to purchase common stock — 3,594,345 RSUs 457,373 1,319,253 Warrants 448,881 588,173 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company's Form 10-K for the year ended December 31, 2023 filed with the SEC on March 5, 2024 (the “2023 Form 10-K”). These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of operations and comprehensive income, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three months ended March 31, 2024 and 2023 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. |
Principles of Consolidation | Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition, cost of revenue recognition, the allowance for credit losses, the lives of tangible and intangible assets, the valuation of acquired intangible assets and the recoverability or impairment of intangible assets, including goodwill, internal-use software development costs, valuation of stock warrants issued, stock-based compensation, and accounting for income taxes. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates. |
Custodial Accounts | Custodial Accounts The Company has established a relationship with its merchant processors to act as collection and paying agents, whereby a merchant processor receives funds from customers and forwards such funds to the respective Paymentus client, based on the instructions received from the Company. These merchant processors act as custodians of the cash received, and the Company has no legal ownership rights to the funds held in such custodial accounts and does not control the use of these funds. As the Company does not take ownership of the funds, these custodial accounts are not included in the Company’s consolidated balance sheets. The balance of cash in the custodial accounts held by these merchant processors was $ 427.7 million and $ 510.8 million as of March 31, 2024 and December 31, 2023 , respectively. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers and resellers to the extent of the amounts recorded in the consolidated balance sheets. No customer accounted for more than 10 % of revenue for either of the three months ended March 31, 2024 and 2023. As of December 31, 2023 , one customer accounted for more than 10 % of accounts receivable. As of March 31, 2024 , no customer accounted for more than 10 % of accounts receivable. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to make operating decisions, allocate resources and assess performa nce. The Company has three operating segments based on geography. The United States segment represents the vast majority of the Company’s consolidated net sales and gross profit. The additional two operating segments, Canada and India, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate. None of the operating segments qualified for aggregation. The Company’s CODM is its chief executive officer. The CODM evaluates the performance of the Company’s operating segments based on revenue and gross profit. The Company does not analyze discrete segment balance sheet information related to long-term assets. All other financial information is presented on a consolidated basis. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 4 and Note 3, respectively. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 included in the 2023 Form 10-K. There have been no significant changes to these policies during the three months ended March 31, 2024 . |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as non-public business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below. Accounting Standards Updates ("ASU") not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The amendments in ASU 2023-07 are effective for public companies for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 "Income Tax Disclosures", which makes changes to annual disclosures of income taxes paid for all entities and requires entities to disclose the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign jurisdiction. Additionally, entities are required to disclose income taxes paid, net of refunds received, for individual jurisdictions that comprise 5% or more of total income taxes paid. The 5% threshold is evaluated using the absolute value of the net refund or net payment in each jurisdiction compared to the absolute value of the total income taxes paid (net of refunds received). ASU 2023-09 requires all entities to disclose disaggregated domestic and foreign pre-tax income (or loss) from continuing operations along with disaggregated income tax expense (or benefit) by federal, state and foreign components. Such disaggregation by jurisdiction should classify taxes by jurisdiction based on the jurisdiction imposing the taxes. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 for public companies. Early adoption is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures. |
Revenue, Performance Obligati_2
Revenue, Performance Obligations and Contract Balances (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table presents a disaggregation of revenue from contracts with customers (in thousands): Three Months Ended March 31, 2024 2023 Payment transaction processing revenue $ 182,752 $ 146,388 Other 2,123 $ 1,940 Total revenue $ 184,875 $ 148,328 |
Summary of Revenue by Geographic Area | Revenue by geographic area, based on the location of the Company’s users, was as follows (in thousands): Three Months Ended March 31, 2024 2023 United States $ 181,301 $ 145,557 Other 3,574 2,771 Total $ 184,875 $ 148,328 |
Summary of Contract Asset and Liability | Contract balances consist of the following: March 31, December 31, 2024 2023 Contract Assets Costs to fulfill (prepaid expenses and other current assets) $ 2,893 $ 2,893 Costs to fulfill (other long-term assets) 4,189 4,783 Total contract assets $ 7,082 $ 7,676 Contract Liabilities Contract liabilities, Current $ 4,097 $ 4,089 Contract liabilities, Non-current 2,752 2,731 Total contract liabilities $ 6,849 $ 6,820 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2024 2023 Computer equipment $ 6,131 $ 6,059 Furniture and fixtures 1,793 1,715 Leasehold improvements 390 396 Total property and equipment 8,314 8,170 Less: Accumulated depreciation ( 6,739 ) ( 6,612 ) Property and equipment, net $ 1,575 $ 1,558 |
Long-lived Assets by Geographic Areas | Long-lived assets include property and equipment, net. The geographic locations of the Company ’s long-lived assets, net, based on physical location of the assets were as follows (in thousands): March 31, December 31, 2024 2023 United States $ 626 $ 558 Other 949 1,000 Total $ 1,575 $ 1,558 |
Goodwill, Internal-use Softwa_2
Goodwill, Internal-use Software Development Costs and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reporting Unit | The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands): United Other Total Balance as of December 31, 2023 $ 131,028 $ 832 $ 131,860 Foreign currency translation adjustments — ( 10 ) ( 10 ) Balance as of March 31, 2024 $ 131,028 $ 822 $ 131,850 |
Summary of Intangible Assets | Intangible assets, net consisted of the following (in thousands): March 31, 2024 Gross Accumulated Net Technology $ 21,832 $ ( 15,880 ) $ 5,952 License 2,509 ( 2,509 ) — Customer relationship 31,989 ( 14,281 ) 17,708 Software 449 ( 417 ) 32 Trademark 4,038 ( 2,593 ) 1,445 Total $ 60,817 $ ( 35,680 ) $ 25,137 December 31, 2023 Gross Accumulated Net Technology $ 21,845 $ ( 14,951 ) $ 6,894 License 2,568 ( 2,568 ) — Customer relationship 32,006 ( 13,480 ) 18,526 Software 451 ( 411 ) 40 Trademark 4,038 ( 2,340 ) 1,698 Total $ 60,908 $ ( 33,750 ) $ 27,158 |
Schedule of Expected Future Amortization Expense | As of March 31, 2024, future expected amortization expense is as follows (in thousands): Years Ending December 31, 2024 (remaining 9 months) 6,062 2025 6,620 2026 3,737 2027 3,269 2028 3,269 Thereafter 2,180 Total future amortization expense $ 25,137 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Liabilities | The composition of accrued liabilities is as follows (in thousands): March 31, December 31, 2024 2023 Payroll and employee-related expenses $ 7,610 $ 15,455 Other accrued liabilities 4,724 5,846 Total $ 12,334 $ 21,301 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of the Company ’s option activity during the three months ended March 31, 2024 was as follows (in thousands, except share and per share amounts): Weighted- Weighted- Average Average Remaining Aggregate Options Exercise Price Contractual Intrinsic Outstanding per Share Life (years) Value Outstanding at December 31, 2023 3,849,350 $ 7.87 5.06 $ 38,505 Options exercised ( 67,746 ) 1.44 Options forfeited ( 1,333 ) 8.66 Outstanding at March 31, 2024 3,780,271 $ 7.98 4.85 $ 55,817 Exercisable at March 31, 2024 3,732,980 $ 7.97 4.83 $ 55,161 No options were granted or expired during the three months ended March 31, 2024. |
Summary of RSU Activity | A summary of the Company ’s RSU activity during the three months ended March 31, 2024 was as follows: Weighted- Average Number of Grant Date RSUs Outstanding Fair Value Awarded and unvested at December 31, 2023 1,946,006 $ 12.74 Awards granted 995,548 19.20 Awards vested ( 235,619 ) 11.42 Awards forfeited ( 25,580 ) 9.89 Awarded and unvested at March 31, 2024 2,680,355 $ 15.28 |
Summary of Stock Based Compensation Expense | Stock-based compensation expense included in the condensed consolidated statements of operations was as follows: Three Months Ended March 31, 2024 2023 (in thousands) Cost of revenue $ 51 $ 45 Research and development 608 546 Sales and marketing 1,310 716 General and administrative 964 852 Total stock-based compensation $ 2,933 $ 2,159 |
Net Income per Share Attribut_2
Net Income per Share Attributable to Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock | The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands except share and per share data): Three Months Ended March 31, 2024 2023 Numerator: Net income $ 7,226 $ 704 Denominator: Weighted-average shares of common stock — basic 123,945,778 123,289,584 Dilutive effect of stock options to purchase common stock 2,141,741 486,286 Dilutive effect of RSUs 754,844 16,871 Dilutive effect of warrants 75,291 — Weighted-average shares of common stock — diluted 126,917,654 123,792,741 Net income per share Basic $ 0.06 $ 0.01 Diluted $ 0.06 $ 0.01 |
Schedule of Common Stock Equivalents Excluded from Income (Loss) Per Diluted Share | The following table summarizes the weighted average securities that were excluded from the computation of diluted net income per share attributable to common stock as their inclusion would have been antidilutive: Three Months Ended March 31, 2024 2023 Stock options to purchase common stock — 3,594,345 RSUs 457,373 1,319,253 Warrants 448,881 588,173 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Area | Revenue by geographic area, based on the location of the Company’s users, was as follows (in thousands): Three Months Ended March 31, 2024 2023 United States $ 181,301 $ 145,557 Other 3,574 2,771 Total $ 184,875 $ 148,328 |
Long-lived Assets by Geographic Areas | Long-lived assets include property and equipment, net. The geographic locations of the Company ’s long-lived assets, net, based on physical location of the assets were as follows (in thousands): March 31, December 31, 2024 2023 United States $ 626 $ 558 Other 949 1,000 Total $ 1,575 $ 1,558 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) Customer Segment | Mar. 31, 2023 Customer | Dec. 31, 2023 USD ($) Customer | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segment | Segment | 3 | ||
Cash in custodial account | $ | $ 427.7 | $ 510.8 | |
Number Of Customer | 0 | 0 | |
Revenue [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 10% | 10% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number Of Customer | 0 | 1 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Minimum [Member] | One Customer [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 10% | 10% |
Revenue, Performance Obligati_3
Revenue, Performance Obligations and Contract Balances - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation, aggregate amount of transaction price | $ 6.8 | |
Remaining performance obligation, percentage | 19% | |
Expected revenue period | 2 years | |
Fixed consideration related to the future minimum guarantees, contract amount | $ 51.2 | |
Reduction in revenue and related contract asset | $ 0.2 | $ 0.7 |
Maximum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Expected revenue period | 4 years | |
Minimum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation, percentage | 75% | |
Expected revenue period | 2 years | |
Payment Transaction Processing Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract With Customer Liability | $ 0.9 | $ 0.7 |
Revenue, Performance Obligati_4
Revenue, Performance Obligations and Contract Balances - Summary of Disaggregation of Revenue from Contracts with Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 184,875 | $ 148,328 |
Payment Transaction Processing Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 182,752 | 146,388 |
Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 2,123 | $ 1,940 |
Revenue, Performance Obligati_5
Revenue, Performance Obligations and Contract Balances - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 184,875 | $ 148,328 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 181,301 | 145,557 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,574 | $ 2,771 |
Revenue, Performance Obligati_6
Revenue, Performance Obligations and Contract Balances - Summary of Contract Asset and Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Contract Assets | ||
Total contract assets | $ 7,082 | $ 7,676 |
Contract Liabilities | ||
Contract liabilities | 4,097 | 4,089 |
Contract liabilities, less current portion | 2,752 | 2,731 |
Total contract liabilities | 6,849 | 6,820 |
Prepaid Expenses and Other Current Assets [Member] | ||
Contract Assets | ||
Total contract assets | 2,893 | 2,893 |
Other Long-term Assets [Member] | ||
Contract Assets | ||
Total contract assets | $ 4,189 | $ 4,783 |
Business Combinations - Schedul
Business Combinations - Schedule Of Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||
Goodwill | $ 131,850 | $ 131,860 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 8,314 | $ 8,170 |
Less: Accumulated depreciation | (6,739) | (6,612) |
Property and equipment, net | 1,575 | 1,558 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 6,131 | 6,059 |
Furniture And Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,793 | 1,715 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 390 | $ 396 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule Of Property and Equipment, Net Based On Physical Location (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 1,575 | $ 1,558 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 626 | 558 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 949 | $ 1,000 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 0.2 | $ 0.3 |
Goodwill, Internal-use Softwa_3
Goodwill, Internal-use Software Development Costs and Intangible Assets - Summary of Goodwill by Reporting Units (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 131,860 |
Foreign currency translation adjustments | (10) |
Ending Balance | 131,850 |
United States | |
Goodwill [Line Items] | |
Beginning Balance | 131,028 |
Foreign currency translation adjustments | 0 |
Ending Balance | 131,028 |
Other | |
Goodwill [Line Items] | |
Beginning Balance | 832 |
Foreign currency translation adjustments | (10) |
Ending Balance | $ 822 |
Goodwill, Internal-use Softwa_4
Goodwill, Internal-use Software Development Costs and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill [Line Items] | ||
Capitalized internal-use software development costs | $ 9,276 | $ 8,219 |
Amortization of Intangible Assets, Total | 2,000 | 2,200 |
Computer Software, Intangible Asset [Member] | ||
Goodwill [Line Items] | ||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 |
Software and Software Development Costs [Member] | ||
Goodwill [Line Items] | ||
Capitalized internal-use software development costs | 9,300 | 8,100 |
Cost Of Revenue [Member] | ||
Goodwill [Line Items] | ||
Amortizaion expense of capitalized software costs | 4,000 | 2,700 |
Operating Expense [Member] | ||
Goodwill [Line Items] | ||
Amortizaion expense of capitalized software costs | $ 2,300 | $ 2,000 |
Goodwill, Internal-use Softwa_5
Goodwill, Internal-use Software Development Costs and Intangible Assets - Summary of Intagible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 60,817 | $ 60,908 |
Accumulated Amortization | (35,680) | (33,750) |
Total future amortization expense | 25,137 | 27,158 |
Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21,832 | 21,845 |
Accumulated Amortization | (15,880) | (14,951) |
Total future amortization expense | 5,952 | 6,894 |
License | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,509 | 2,568 |
Accumulated Amortization | (2,509) | (2,568) |
Total future amortization expense | 0 | 0 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31,989 | 32,006 |
Accumulated Amortization | (14,281) | (13,480) |
Total future amortization expense | 17,708 | 18,526 |
Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 449 | 451 |
Accumulated Amortization | (417) | (411) |
Total future amortization expense | 32 | 40 |
Trademark | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,038 | 4,038 |
Accumulated Amortization | (2,593) | (2,340) |
Total future amortization expense | $ 1,445 | $ 1,698 |
Goodwill, Internal-use Softwa_6
Goodwill, Internal-use Software Development Costs and Intangible Assets - Schedule of Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 (remaining 9 months) | $ 6,062 | |
2025 | 6,620 | |
2026 | 3,737 | |
2027 | 3,269 | |
2028 | 3,269 | |
Thereafter | 2,180 | |
Total future amortization expense | $ 25,137 | $ 27,158 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued Liabilities, Current [Abstract] | ||
Payroll and employee-related expenses | $ 7,610 | $ 15,455 |
Other accrued liabilities | 4,724 | 5,846 |
Accrued liabilities | $ 12,334 | $ 21,301 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other commitments, description | The Company has entered into certain non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. Obligations under contracts that are cancellable or with remaining terms of 12 months or less are not included. There have been no material changes to the Company's contractual obligations or commitments outside of the ordinary course of business as compared to those described in the 2023 Form 10-K. |
Equity - Additional Information
Equity - Additional Information (Details) - $ / shares | Mar. 31, 2024 | Aug. 29, 2022 | May 13, 2021 |
Class Of Stock [Line Items] | |||
Common stock, par value | $ 10.1 | $ 18.38 | |
Warrant Issue | 684,510 | 509,370 | |
Warrant shares vested and exercisable | 448,880 | ||
Fully Vested | 620,008 | 171,128 | 382,027 |
Vesting of the Remaining Shares of the Warrant | 513,382 | 127,343 |
Stock-Based compensation - Addi
Stock-Based compensation - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
May 31, 2021 | Mar. 31, 2024 | Jan. 01, 2024 | Dec. 31, 2021 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Total unrecognized compensation cost | $ 38.5 | |||
Total unrecognized compensation cost, recognition period | 3 years 9 months 18 days | |||
RSUs vested | 235,619 | |||
Class A Common Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares reserved for issuance | 5,000,000 | |||
Class A & Class B Common Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Percentage of annual increase of outstanding shares | 4% | |||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
RSUs vest over the requisite service period | 5 years | |||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
RSUs vest over the requisite service period | 4 years | |||
Equity Incentive Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Total unrecognized compensation cost | $ 0.1 | |||
Total unrecognized compensation cost, recognition period | 1 year 4 months 24 days | |||
Equity Incentive Plan [Member] | Class A Common Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares reserved for issuance | 10,459,000 | |||
Options granted in period | 7,563,990 | |||
2021 Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares reserved for issuance | 21,700,000 |
Stock-Based compensation - Sche
Stock-Based compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Options Outstanding, Beginning | 3,849,350 | |
Options exercised | (67,746) | |
Options forfeited | (1,333) | |
Options Outstanding, Ending | 3,780,271 | 3,849,350 |
Options Outstanding, Exercisable | 3,732,980 | |
Weighted Average Exercise Price, Beginning | $ 7.87 | |
Weighted Average Exercise Price, Exercised | 1.44 | |
Weighted Average Exercise Price, Forfeited | 8.66 | |
Weighted Average Exercise Price, Ending | 7.98 | $ 7.87 |
Weighted Average Exercise Price, Exercisable | $ 7.97 | |
Weighted Average Remaining Contractual Term (years) | 4 years 10 months 6 days | 5 years 21 days |
Weighted Average Remaining Contractual Term (years), Exercisable | 4 years 9 months 29 days | |
Aggregate Intrinsic Value, Beginning | $ 38,505 | |
Aggregate Intrinsic Value, Ending | 55,817 | $ 38,505 |
Aggregate Intrinsic Value, Exercisable | $ 55,161 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Awarded and unvested, Beginning Balance | shares | shares | 1,946,006 |
Awards, Granted | shares | shares | 995,548 |
Awards, Vested | shares | shares | (235,619) |
Awards,Forfeited | shares | shares | (25,580) |
Awarded and unvested, Ending Balance | shares | shares | 2,680,355 |
Weighted Average Grant-Date Fair Value, Unvested, Beginning Balance | $ / shares | $ / shares | $ 12.74 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | $ / shares | 19.2 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | $ / shares | 11.42 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | $ / shares | 9.89 |
Weighted Average Grant-Date Fair Value, Unvested, Ending Balance | $ / shares | $ / shares | $ 15.28 |
Stock-Based compensation - Summ
Stock-Based compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 2,933 | $ 2,159 |
Cost Of Revenue [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 51 | 45 |
Research and Development [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 608 | 546 |
Sales and Marketing [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 1,310 | 716 |
General and Administrative [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 964 | $ 852 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Effective tax rate | 32.80% | (57.90%) |
Difference between effective tax rate and federal statutory rate | 21% |
Net Income per Share Attribut_3
Net Income per Share Attributable to Common Stock - Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net Income (Loss) | $ 7,226 | $ 704 |
Denominator: | ||
Weighter-average shares of common stock - basic | 123,945,778 | 123,289,584 |
Dilutive effect of stock options to purchase common stock | 2,141,741 | 486,286 |
Dilutive effect of RSUs | 754,844 | 16,871 |
Dilutive effect of warrants | 75,291 | 0 |
Weighter-average shares of common stock - diluted | 126,917,654 | 123,792,741 |
Net income per share | ||
Basic | $ 0.06 | $ 0.01 |
Diluted | $ 0.06 | $ 0.01 |
Net Income per Share Attribut_4
Net Income per Share Attributable to Common Stock - Schedule of Common Stock Equivalents Excluded from Income (Loss) Per Diluted Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 0 | 3,594,345 |
RSU [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 457,373 | 1,319,253 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 448,881 | 588,173 |
Geographic Information - Summar
Geographic Information - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 184,875 | $ 148,328 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 181,301 | $ 145,557 |
Geographic Information - Summ_2
Geographic Information - Summary of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets, comprising property and equipment assets | $ 1,575 | $ 1,558 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets, comprising property and equipment assets | 626 | 558 |
Other | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets, comprising property and equipment assets | $ 949 | $ 1,000 |