AvidXchange (AVDX) 10-Q 2 Aug 24 2024 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	AvidXchange Holdings, Inc.
Entity Central Index Key	0001858257
Entity File Number	001-40898
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-3391192
Entity Address, Address Line One	1210 AvidXchange Lane
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28206
City Area Code	800
Local Phone Number	560-9305
Security 12b Title	Common Stock, $0.001 par value per share
Trading Symbol	AVDX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		207,845,629

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 375,173	$ 406,974
Restricted funds held for customers	1,193,455	1,578,656
Marketable securities	89,854	44,645
Accounts receivable, net of allowances of $4,384 and $4,231, respectively	50,086	46,689
Supplier advances receivable, net of allowances of $1,343 and $1,333 respectively	12,610	9,744
Prepaid expenses and other current assets	14,552	12,070
Total current assets	1,735,730	2,098,778
Property and equipment, net	99,282	100,985
Operating lease right-of-use assets	1,299	1,628
Deferred customer origination costs, net	27,805	27,663
Goodwill	165,921	165,921
Intangible assets, net	77,038	84,805
Other noncurrent assets and deposits	4,719	3,957
Total assets	2,111,794	2,483,737
Current liabilities
Accounts payable	15,419	16,777
Accrued expenses	45,702	56,367
Payment service obligations	1,193,455	1,578,656
Deferred revenue	11,821	12,851
Current maturities of lease obligations under finance leases	205	275
Current maturities of lease obligations under operating leases	1,462	1,525
Current maturities of long-term debt	6,425	6,425
Total current liabilities	1,274,489	1,672,876
Long-term liabilities
Deferred revenue, less current portion	13,037	14,742
Obligations under finance leases, less current maturities	62,738	62,464
Obligations under operating leases, less current maturities	2,685	3,275
Long-term debt	69,084	69,760
Other long-term liabilities	3,998	4,175
Total liabilities	1,426,031	1,827,292
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value; 50,000,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023
Common stock, $0.001 par value; 1,600,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 207,819,898 and 204,084,024 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	207	204
Additional paid-in capital	1,708,289	1,678,401
Accumulated deficit	(1,022,733)	(1,022,160)
Total stockholders' equity	685,763	656,445
Total liabilities and stockholders' equity	$ 2,111,794	$ 2,483,737

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 4,384	$ 4,231
Receivable, allowance for credit loss, current	$ 1,343	$ 1,333
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common stock, par or stated value per share	$ 0.001	$ 0.001
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, shares, issued	207,819,898	204,084,024
Common stock, shares, outstanding	207,819,898	204,084,024

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenues	$ 105,132	$ 91,154	$ 210,730	$ 177,976
Cost of revenues (exclusive of depreciation and amortization expense)	30,426	30,221	60,759	59,694
Operating expenses
Sales and marketing	19,956	20,076	39,697	40,211
Research and development	25,008	24,740	50,912	47,862
General and administrative	22,635	27,716	46,895	50,343
Impairment and write-off of intangible assets			162
Depreciation and amortization	9,208	8,878	18,515	17,464
Total operating expenses	76,807	81,410	156,181	155,880
Loss from operations	(2,101)	(20,477)	(6,210)	(37,598)
Other income (expense)
Interest income	5,979	5,204	12,541	9,720
Interest expense	(3,323)	(3,363)	(6,660)	(6,678)
Other income	2,656	1,841	5,881	3,042
Income (loss) before income taxes	555	(18,636)	(329)	(34,556)
Income tax expense	119	135	244	205
Net income (loss)	$ 436	$ (18,771)	$ (573)	$ (34,761)
Net income (loss) per share attributable to common stockholders, basic	$ 0	$ (0.09)	$ 0	$ (0.17)
Net income (loss) per share attributable to common stockholders, diluted	$ 0	$ (0.09)	$ 0	$ (0.17)
Weighted average number of common shares used to compute net income (loss) per share attributable to common stockholders, basic	207,025,967	201,559,007	205,961,720	200,734,555
Weighted average number of common shares used to compute net income (loss) per share attributable to common stockholders, diluted	210,370,559	201,559,007	205,961,720	200,734,555

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balance, Shares at Dec. 31, 2022		199,433,998
Beginning Balance at Dec. 31, 2022	$ 657,444	$ 199	$ 1,632,080	$ (974,835)
Exercise of stock options, Shares		123,168
Exercise of stock options	366		366
Issuance of common stock upon vesting of restricted stock units, shares		1,471,826
Issuance of common stock upon vesting of restricted stock units	1	$ 2	(1)
Stock-based compensation expense	8,661		8,661
Stock-based compensation expense for Employee Stock Purchase Plan, or ESPP	270		270
Net income (loss)	(15,990)			(15,990)
Ending Balance, Shares at Mar. 31, 2023		201,028,992
Ending Balance at Mar. 31, 2023	650,752	$ 201	1,641,376	(990,825)
Exercise of stock options, Shares		99,215
Exercise of stock options	337		337
Issuance of common stock upon vesting of restricted stock units, net of shares surrendered for taxes, shares		792,242
Issuance of common stock upon vesting of restricted stock units, net of shares surrendered for taxes		$ 1	(1)
Issuance of common stock under ESPP, Shares		193,164
Issuance of common stock under ESPP	1,178		1,178
Stock-based compensation expense	10,869		10,869
Stock-based compensation expense for Employee Stock Purchase Plan, or ESPP	152		152
Net income (loss)	(18,771)			(18,771)
Ending Balance, Shares at Jun. 30, 2023		202,113,613
Ending Balance at Jun. 30, 2023	$ 644,517	$ 202	1,653,911	(1,009,596)
Beginning Balance, Shares at Dec. 31, 2023	204,084,024	204,084,024
Beginning Balance at Dec. 31, 2023	$ 656,445	$ 204	1,678,401	(1,022,160)
Exercise of stock options, Shares		493,608
Exercise of stock options	3,168		3,168
Issuance of common stock upon vesting of restricted stock units, shares		1,737,736
Issuance of common stock upon vesting of restricted stock units		$ 2	(2)
Stock-based compensation expense	10,766		10,766
Stock-based compensation expense for Employee Stock Purchase Plan, or ESPP	193		193
Net income (loss)	(1,009)			(1,009)
Ending Balance, Shares at Mar. 31, 2024		206,315,368
Ending Balance at Mar. 31, 2024	$ 669,563	$ 206	1,692,526	(1,023,169)
Beginning Balance, Shares at Dec. 31, 2023	204,084,024	204,084,024
Beginning Balance at Dec. 31, 2023	$ 656,445	$ 204	1,678,401	(1,022,160)
Exercise of stock options, Shares	802,043
Ending Balance, Shares at Jun. 30, 2024	207,819,898	207,819,898
Ending Balance at Jun. 30, 2024	$ 685,763	$ 207	1,708,289	(1,022,733)
Beginning Balance, Shares at Mar. 31, 2024		206,315,368
Beginning Balance at Mar. 31, 2024	669,563	$ 206	1,692,526	(1,023,169)
Exercise of stock options, Shares		308,435
Exercise of stock options	2,225		2,225
Issuance of common stock upon vesting of restricted stock units, shares		1,028,744
Issuance of common stock upon vesting of restricted stock units		$ 1	(1)
Issuance of common stock under ESPP, Shares		167,351
Issuance of common stock under ESPP	1,220		1,220
Stock-based compensation expense	12,117		12,117
Stock-based compensation expense for Employee Stock Purchase Plan, or ESPP	202		202
Net income (loss)	$ 436			436
Ending Balance, Shares at Jun. 30, 2024	207,819,898	207,819,898
Ending Balance at Jun. 30, 2024	$ 685,763	$ 207	$ 1,708,289	$ (1,022,733)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net income (loss)	$ (573)	$ (34,761)
Adjustments to reconcile net loss to net cash used by operating activities
Depreciation and amortization expense	18,515	17,464
Amortization of deferred financing costs	212	220
Provision for credit losses	1,481	2,125
Stock-based compensation	23,278	19,952
Accrued interest	822	1,004
Impairment and write-off on intangible assets	162
Accretion of investments held to maturity	(2,209)	(2,731)
Deferred income taxes	178	105
Changes in operating assets and liabilities
Accounts receivable	(3,652)	(4,711)
Prepaid expenses and other current assets	(2,481)	631
Other noncurrent assets	(839)	1,247
Deferred customer origination costs	(142)	717
Accounts payable	(1,378)	2,925
Deferred revenue	(2,735)	45
Accrued expenses and other liabilities	(11,388)	(20,636)
Operating lease liabilities	(323)	(242)
Total adjustments	19,501	18,115
Net cash provided by (used in) operating activities	18,928	(16,646)
Cash flows from investing activities
Purchase of marketable securities held to maturity	(98,996)	(162,996)
Proceeds from maturity of marketable securities held to maturity	55,996	175,705
Purchases of equipment	(1,100)	(526)
Purchases of intangible assets	(8,087)	(7,733)
Supplier advances, net	(4,092)	(946)
Net cash (used in) provided by investing activities	(56,279)	3,504
Cash flows from financing activities
Repayments of long-term debt	(813)	(812)
Principal payments on finance leases	(150)	(305)
Proceeds from issuance of common stock	5,393	703
Proceeds from issuance of common stock under ESPP	1,220	1,178
Payment of debt issuance costs		(743)
Payment of acquisition-related liability	(100)	(100)
Payment service obligations	(385,201)	(94,127)
Net cash used in financing activities	(379,651)	(94,206)
Net decrease in cash, cash equivalents, and restricted funds held for customers	(417,002)	(107,348)
Cash, cash equivalents, and restricted funds held for customers
Cash, cash equivalents, and restricted funds held for customers, beginning of year	1,985,630	1,634,387
Cash, cash equivalents, and restricted funds held for customers, end of period	1,568,628	1,527,039
Supplementary information of noncash investing and financing activities
Property and equipment purchases in accounts payable and accrued expenses	19	818
Right-of-use assets obtained in exchange for new finance lease obligations		81
Right-of-use assets obtained in exchange for new operating lease obligations		362
Interest paid on notes payable	2,673	2,541
Interest paid on finance leases	2,954	2,914
Cash paid for income taxes	$ 254	$ 212

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 436	$ (1,009)	$ (18,771)	$ (15,990)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	(c) Trading Plans of Directors and Executive Officers Trading Agreement Action Date Rule 10b5-1* Non-Rule 10b5-1** Total Shares to be Sold Expiration Date Todd Cunningham , Chief People Officer, Senior Vice President Terminate June 13, 2024 X 50,000 Not applicable Todd Cunningham , Chief People Officer, Senior Vice President Adopt June 13, 2024 X 49,902 December 31, 2024 Daniel Drees , President Terminate June 6, 2024 X 37,738 Not applicable Daniel Drees , President Adopt June 10, 2024 X 247,729 June 2, 2025 Ryan Stahl , General Counsel and Secretary, Senior Vice President Adopt June 14, 2024 X 32,899 December 12, 2024 Joel Wilhite , Chief Financial Officer, Senior Vice President Adopt May 24, 2024 X 102,758 November 15, 2024 * Intended to satisfy the affirmative defense of Rule 10b5-1(c) ** Not intended to satisfy the affirmative defense of Rule 10b5-1(c)
Todd Cunningham [Member]
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Ryan Stahl [Member]
Trading Arrangements, by Individual
Name	Ryan Stahl
Title	General Counsel and Secretary, Senior Vice President
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	false
Adoption Date	June 14, 2024
Expiration Date	December 12, 2024
Arrangement Duration	182 days
Aggregate Available	32,899
Joel Wilhite [Member]
Trading Arrangements, by Individual
Name	Joel Wilhite
Title	Chief Financial Officer, Senior Vice President
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	false
Adoption Date	May 24, 2024
Expiration Date	November 15, 2024
Arrangement Duration	176 days
Aggregate Available	102,758
Daniel Drees [Member]
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10B5-1 Trading Plan One [Member] | Todd Cunningham [Member]
Trading Arrangements, by Individual
Name	Todd Cunningham
Title	Chief People Officer, Senior Vice President
Rule 10b5-1 Arrangement Terminated	true
Termination Date	June 13, 2024
Aggregate Available	50,000
Rule 10B5-1 Trading Plan One [Member] | Daniel Drees [Member]
Trading Arrangements, by Individual
Name	Daniel Drees
Title	President
Rule 10b5-1 Arrangement Terminated	true
Termination Date	June 6, 2024
Aggregate Available	37,738
Rule 10B5-1 Trading Plan Two [Member] | Todd Cunningham [Member]
Trading Arrangements, by Individual
Name	Todd Cunningham
Title	Chief People Officer, Senior Vice President
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 13, 2024
Expiration Date	December 31, 2024
Arrangement Duration	202 days
Aggregate Available	49,902
Rule 10B5-1 Trading Plan Two [Member] | Daniel Drees [Member]
Trading Arrangements, by Individual
Name	Daniel Drees
Title	President
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 10, 2024
Expiration Date	June 2, 2025
Arrangement Duration	358 days
Aggregate Available	247,729

Formation and Business of the C

Formation and Business of the Company	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Formation and Business of the Company	1. Formation and Business of the Company AvidXchange, Inc. was incorporated in the state of Delaware in 2000. In July 2021, the company consummated a reorganization by interposing a holding company between AvidXchange, Inc. and its stockholders. After the reorganization, all of the stockholders of AvidXchange, Inc. became stockholders of AvidXchange Holdings, Inc. and AvidXchange, Inc. became a wholly owned subsidiary of AvidXchange Holdings, Inc. To accomplish the reorganization, the company formed AvidXchange Holdings, Inc., which was incorporated in Delaware on January 27, 2021, and AvidXchange Merger Sub, Inc. (“Merger Sub”) as a wholly owned subsidiary of AvidXchange Holdings, Inc. The Company merged AvidXchange, Inc. with and into Merger Sub, with AvidXchange, Inc. as the surviving entity, by issuing identical shares of stock of AvidXchange Holdings, Inc. to the stockholders of AvidXchange, Inc. in exchange for their equity interest in AvidXchange, Inc. The merger was considered a transaction between entities under common control. Upon the effective date of the reorganization, July 9, 2021, AvidXchange Holdings, Inc. recognized the assets and liabilities of AvidXchange, Inc. at their carrying values within its financial statements. AvidXchange Holdings, Inc. and its wholly owned subsidiaries are collectively referred to as “AvidXchange” or “the Company” in the accompanying consolidated financial statements after the reorganization. AvidXchange provides accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. The Company provides solutions and services throughout North America spanning multiple industries including real estate, community association management, construction, financial services (including banks and credit unions), healthcare facilities, social services, education, media, and hospitality.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Consolidation and Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial position, results of operations, changes in stockholders’ equity, and cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any other future annual or interim period. The unaudited consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. All significant intercompany accounts and transactions have been eliminated. There are no items of comprehensive income. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2023 . Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates reflected in these unaudited consolidated financial statements include, but are not limited to, the allowance for credit losses and returns, useful lives assigned to fixed and intangible assets, capitalization of internal-use software, deferral of customer origination costs, the fair value of intangible assets acquired in a business combination, the fair value of goodwill, and the recoverability of deferred income taxes. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. Concentrations Significant Services A substantial portion of the Company’s revenue is derived from interchange fees earned on payment transactions processed as virtual commercial cards (“VCC”). The Company utilizes service providers to process these transactions. Revenue from one service provider represented 27 % and 20 % of total revenue for the three months ended June 30, 2024 and 2023, respectively, and 20% of total revenue in each of the six months ended June 30, 2024 and 2023. Accounts receivable from this service provider represented 29 % and 12 % of accounts receivable, net as of June 30, 2024 and December 31, 2023 , respectively. Revenue from a second provider represented 19 % and 27 % of total revenue for the three months ended June 30, 2024 and 2023, respectively, and 26 % and 27 % of total revenue for the six months ended June 30, 2024 and 2023 , respectively. Accounts receivable from this second service pro vider represented 19 % and 38 % of accounts receivable, net as of June 30, 2024 and December 31, 2023, respectively. Future regulation or changes by the card brand payment networks could have a substantial impact on interchange rates and the Company’s revenue from VCC transactions. If interchange rates decline, whether due to actions by the card brand payment networks or future regulation, or if merchant/suppliers elect to receive payments that result in lower or no interchange revenue such as check or apply fees in consideration of accepting electronic forms of payment, the Company’s total operating revenues, operating results, prospects for future growth and overall business could be materially affected. The Company’s revenue from VCC transactions is also impacted by fees charged by service providers to process our VCC transactions. Restructuring costs During the fourth quarter of 2023, the Company initiated a restructuring plan to generate cost savings and improve effectiveness of the organization which resulted in a reduction in the Company’s U.S. workforce. The plan was implemented in the fourth quarter of 2023 and completed in the second quarter of 2024. There were no restructuring costs recorded in the three months ended June 30, 2024. The Company recorded restructuring costs of $ 1,157 in the six months ended June 30, 2024, and $ 3,037 cumulatively, from one-time severance charges in connection with this plan. Restructuring costs are included in general and administrative expenses in the consolidated statements of operations. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase that are not recorded as marketable securities to be cash equivalents. The carrying values of cash and cash equivalents approximate their fair values due to the short-term nature of these instruments. Cash in the Company’s bank accounts may exceed federally insured limits. Marketable Securities Marketable securities consist of short-term investments in short-term commercial paper, certificates of deposits and various U.S. government backed securities. To reflect its intention, the Company classifies its marketable securities as held-to-maturity at the time of purchase. As a result, the marketable securities are recorded at amortized cost and any gains or losses realized upon maturity are reported in other income (expense) in the consolidated statements of operations. Accounts Receivable, Supplier Advances and Allowance for Credit Losses Accounts receivable represent amounts due from the Company’s VCC service providers for interchange fees earned and from buyer customers who have been invoiced for the use of the Company’s software offerings, but for whom payments have not been received. Accounts receivable from VCC service providers are presented net of an allowance for returns for transactions subsequently canceled that do not ultimately settle through the payment network. Accounts receivable from buyer customers are presented net of allowances for credit losses and returns. The Company estimates expected credit losses related to accounts receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined individually or collectively depending on whether the accounts receivable balances share similar risk characteristics. The allowance for returns for VCC transactions subsequently canceled are assessed at each period end and recognized as a reduction of revenue. The allowances for buyer customer’s credit losses and returns are assessed at each period end and are recognized as bad debt expense within general and administrative expenses in the consolidated statements of operations and as a reduction of revenue, respectively. A buyer customer receivable is written off against the allowance when it is determined that all collection efforts have been exhausted and the potential for recovery is considered remote. Historically, losses related to customer nonpayment have been immaterial and most of the accounts receivable balances have been current. Supplier advances receivable represent amounts that have been advanced as part of the AvidXchange’s Payment Accelerator product but have not been collected. Advances are collected from the buyer customer once the buyer initiates the transfer of funds for the invoice that was previously advanced. If the buyer does not transfer the funds as expected, the Company is exposed to losses. The Company’s experience with such delinquencies by buyer customers has been immaterial. Supplier advances receivable are stated net of expected credit losses. The Company estimates expected credit losses related to supplier advances receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined individually or collectively depending on whether the accounts receivable balances share similar risk characteristics. The allowance for credit losses for supplier advances is assessed at period end and the measurement of the allowance is included as a component of cost of revenues in the Company’s consolidated statements of operations. Supplier advances receivable balances are charged against the allowance when the Company determines it is probable the receivable will not be recovered after collection efforts and legal actions have been exhausted. The Company classifies the fees charged to supplier customers as cash flows from operating activities with the remaining accelerated advancements and recoupments classified as cash flows from investing activities on a net basis within the consolidated statements of cash flows. Restricted Funds Held for Customers and Payment Service Obligations Restricted funds held for customers and the corresponding liability of payment service obligations represent funds that are collected from customers for payments to their suppliers. The Company determines the balances of restricted funds held for customers, and the corresponding payment services obligations, by reconciling cash held by financial institutions and the corresponding payments in transit at the end of each period. The balance of these obligations may fluctuate from period to period depending on the timing of the period end and the timing of when outstanding payments clear with financial institutions. The Company is registered as a money services business with the Financial Crimes Enforcement Network. Payment service obligations are comprised of outstanding daily transaction liabilities per state regulatory average daily transaction liability report requirements and other unregulated settlements with payees, which do not constitute a regulatory liability event under reporting requirements. As of June 30, 2024 As of December 31, 2023 Outstanding Transaction Liabilities $ 1,175,492 $ 1,568,280 Other unregulated settlements 17,963 10,376 Total payment service obligations $ 1,193,455 $ 1,578,656 The Company historically transmitted buyer customer funds using a legacy model pursuant to which buyer customer funds were held in trust accounts that were maintained and operated by a trustee pending distribution to suppliers in accordance with instructions provided through the Company’s platform. The Company is not the trustee or beneficiary of the trusts which hold these buyer deposits; accordingly, the Company does not record these assets and offsetting liabilities on its consolidated balance sheets. The Company has largely phased out this model although certain banks that resell its products and services continue to leverage a similar structure. The Company contractually earns interest on funds held for certain buyers. The amount of Company and bank customer funds held in all trust-related and similar accounts was approximately $ 12,461 and $ 6,269 as of June 30, 2024 and December 31, 2023, respectively. The Company has transitioned most payment transmission activity to the money transmitter license model and obtained a money transmitter license in all states which require licensure. This model enables AvidXchange to provide commercial payment services to businesses through its “for the benefit of customer” bank accounts, also known as FBO, that are restricted for such purposes. The restricted funds held for customers are restricted for the purpose of satisfying the customer’s supplier obligations and are not available for general business use by the Company. The Company maintains these funds in liquid cash accounts and contractually earns interest on these funds held for customers. These funds are recognized as a restricted cash asset and a corresponding liability is recorded for payments due to their suppliers on the Company’s consolidated balance sheets. Restricted funds held for customers are included in the cash and cash equivalents on the consolidated statements of cash flows. Stock-Based Compensation Compensation cost for stock-based awards issued to employees and outside directors, including stock options and restricted stock units (“RSUs”), is measured at fair value on the date of grant. The fair value of stock options is estimated using a Black-Scholes option-pricing model, while the fair value of RSUs is determined using the fair value of the Company’s underlying common stock. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award. Stock-based compensation expense for RSUs with performance conditions is recognized over the requisite service period on an accelerated-basis as long as the performance condition in the form of a specified liquidity event is probable to occur. In the case of equity issued in lieu of cash bonus, expense is recognized in the period the cash bonus was earned. Nonqualified Deferred Compensation Plan The Company adopted a nonqualified, deferred compensation plan effective October 1, 2015, which is an unfunded plan created for the benefit of a select group of management or highly compensated employees. The purpose of the plan is to attract and retain key employees by providing them with an opportunity to defer receipt of a portion of their compensation. It is exempt from the participation, vesting, funding, and fiduciary requirements set forth in Title I of the Employee Retirement Income Security Act of 1974, as amended. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the nonqualified deferred compensation plan, as directed by each participant. The Company has established a ‘rabbi trust’ that serves as an investment to shadow the deferred compensation plan liability. The assets of the rabbi trust primarily consist of trust-owned life insurance policies which are recorded at cash surrender value and are included in other noncurrent assets. The change in cash surrender value of the life insurance policies in the rabbi trust is recorded in other income (expense) on the Company's unaudited consolidated statements of operations. The assets of the rabbi trust are general assets of the Company and as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. The related deferred compensation liabilities are included in other long-term liabilities. The Company has recorded these assets and liabilities at their fair value. In association with this plan, $ 2,688 and $ 1,866 were included in other noncurrent assets and $ 2,291 and $ 2,398 were included in noncurrent liabilities as of June 30, 2024 and December 31, 2023 , respectively, on the Company's unaudited consolidated balance sheets. Contingent Liabilities Contingent liabilities require significant judgment in estimating potential losses for legal claims. The Company reviews significant new claims and litigation for the probability of an adverse outcome. Estimates are recorded as liabilities when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable. Disclosure is required when there is a reasonable possibility that the ultimate loss will materially exceed the recorded provision. Contingent liabilities are often resolved over long periods of time. Estimating probable losses requires analysis of multiple forecasts that often depend on judgments about potential actions by third parties such as regulators, and the estimated loss can change materially as individual claims develop. New Accounting Pronouncements Recently Adopted Accounting Standards In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements . The amendments in this update that apply to public business entities clarify the accounting for leasehold improvements associated with common control leases. The adoption of this guidance on January 1, 2024 did no t have an impact on the Company's consolidated financial statements . Accounting Pronouncements Issued but Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective for calendar year-end public business entities in the 2025 annual period and in 2026 for interim periods, with early adoption permitted. The Company is assessing the impact of this guidance on its financial statements.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	3. Revenue from Contracts with Customers Disaggregation of Revenue The table below presents the Company’s revenues disaggregated by type of services performed. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Software revenue $ 29,914 $ 27,248 $ 59,602 $ 54,216 Payment revenue 74,183 63,228 149,385 122,409 Services revenue 1,035 678 1,743 1,351 Total revenues $ 105,132 $ 91,154 $ 210,730 $ 177,976 Contract Assets and Liabilities The Company’s rights to payments are not conditional on any factors other than the passage of time, and as such, the Company does not have any contract assets. Contract liabilities consist primarily of advance cash receipts for services (deferred revenue) and are recognized as revenue when the services are provided. The table below presents information on accounts receivable and contract liabilities. As of June 30, 2024 As of December 31, 2023 Trade accounts receivable, net $ 19,953 $ 16,261 Payment processing receivable, net 30,133 30,428 Accounts receivable, net $ 50,086 $ 46,689 Contract liabilities $ 24,858 $ 27,593 Significant changes in the contract liabilities balance are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue recognized included in beginning of period balance $ ( 3,018 ) $ ( 3,523 ) $ ( 6,409 ) $ ( 6,014 ) Cash received, excluding amounts recognized as revenue during the period 1,614 3,830 3,674 6,059 The tables below present a summary of changes in the Company’s allowances for credit losses and returns for the six months ended June 30, 2024 and 2023: Accounts Receivable Allowance for Credit Losses Allowance for Returns Supplier Advances Receivable Allowance Allowance balance, December 31, 2023 $ 2,142 $ 2,089 $ 1,333 Amounts charged to contra revenue, cost of revenues and expenses 286 ( 105 ) 654 Amounts written off as uncollectable ( 28 ) - ( 1,216 ) Recoveries of amounts previously written off - - 572 Deduction released to revenue - - - Allowance balance, June 30, 2024 $ 2,400 $ 1,984 $ 1,343 Accounts Receivable Allowance for Credit Losses Allowance for Returns Supplier Advances Receivable Allowance Allowance balance, December 31, 2022 $ 1,539 $ 1,584 $ 1,872 Amounts charged to contra revenue, cost of revenues and expenses 1,330 225 50 Amounts written off as uncollectable ( 233 ) - ( 1,262 ) Recoveries of amounts previously written off - - 732 Deduction released to revenue - ( 93 ) - Allowance balance, June 30, 2023 $ 2,636 $ 1,716 $ 1,392 Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized. These revenues are subject to future economic risks including customer cancellations, bankruptcies, regulatory changes and other market factors. The Company applies the practical expedient in ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”), paragraph 606-10-50-14(b) and does not disclose information about remaining performance obligations related to transaction and processing services that qualify for recognition in accordance with paragraph 606-10-55-18 of Topic 606. These contracts contain variable consideration for stand-ready performance obligations for which the exact quantity and mix of transactions to be processed are contingent upon buyer or supplier request. These contracts also contain fixed fees and non-refundable upfront fees; however, these amounts are not considered material to total consolidated revenue. The Company’s remaining performance obligation consists of contracts with financial institutions who are using the ASCEND solution. These contracts generally have a duration of two to five years and contain fixed maintenance fees that are considered fixed p rice guarantees. Remaining performance obligation consisted of the following: Current Noncurrent Total As of June 30, 2024 $ 14,895 $ 20,246 $ 35,141 As of December 31, 2023 15,031 20,403 35,434 Contract Costs The Company incurs incremental costs to obtain a contract, as well as costs to fulfill a contract with buyer customers that are expected to be recovered. These costs consist primarily of sales commissions incurred if a contract is obtained, and customer implementation related costs. The Company utilizes a portfolio approach when estimating the amortization of contract acquisition and fulfillment costs. These costs are amortized on a straight-line basis over the expected benefit period of generally five years , which was determined by taking into consideration customer attrition rates, estimated terms of customer relationships, useful lives of technology, industry peers, and other factors. The amortization of contract fulfillment costs associated with implementation activities are recorded as cost of revenues in the Company's consolidated statements of operations. The amortization of contract acquisition costs associated with sales commissions that qualify for capitalization is recorded as sales and marketing expense in the Company’s consolidated statements of operations. Costs to obtain or fulfill a contract are classified as deferred customer origination costs in the Company’s consolidated balance sheets. The following tables present information about deferred contract costs: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Capitalized sales commissions and implementation costs $ 3,827 $ 2,539 $ 6,480 $ 5,377 Amortization of deferred contract costs Costs to obtain contracts included in sales and marketing expense $ 1,692 $ 1,465 $ 3,243 $ 2,939 Costs to fulfill contracts included in cost of revenue $ 1,546 $ 1,585 3,095 3,154

Income (Loss) Per Common Share

Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Income (Loss) Per Common Share	4. Income (Loss) Per Common Share The following common share equivalent securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Anti-Dilutive Common Share Equivalents 2024 2023 2024 2023 Stock options 158,920 8,398,693 7,556,543 8,398,693 Restricted stock units 102,523 10,846,847 10,986,075 10,846,847 Employee stock purchase plan 3,988 52,980 60,450 52,980 Total anti-dilutive common share equivalents 265,431 19,298,520 18,603,068 19,298,520 Basic and diluted net income (loss) per common share is calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income (loss) $ 436 $ ( 18,771 ) $ ( 573 ) $ ( 34,761 ) Net income (loss) attributable to common stockholders $ 436 $ ( 18,771 ) $ ( 573 ) $ ( 34,761 ) Denominator: Weighted-average common shares outstanding, basic 207,025,967 201,559,007 205,961,720 200,734,555 Weighted-average effect of potentially dilutive securities: Stock options 1,322,945 - - - Restricted stock units 2,021,647 - - - Weighted-average common shares outstanding, diluted 210,370,559 201,559,007 205,961,720 200,734,555 Net income (loss) per common share, basic $ 0.00 $ ( 0.09 ) $ 0.00 $ ( 0.17 ) Net income (loss) per common share, diluted $ 0.00 $ ( 0.09 ) $ 0.00 $ ( 0.17 )

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements The Company’s financial instruments consist of cash and cash equivalents, marketable securities, trade and supplier advances receivables, assets of the rabbi trust, AP, deferred compensation liabilities, and debt. The carrying amount of cash, trade and supplier advances receivables, and AP approximate fair value due to the short-term maturity. The estimated fair value of long-term debt is based on borrowing rates currently available to the Company for similar debt issues. The fair value approximates the carrying value of long-term debt. In accordance with applicable accounting standards, the Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1 Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2 Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 Unobservable inputs that reflect the reporting entity’s own assumptions. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. When more than one level of input is used to determine the fair value, the financial instrument is classified as Level 1, 2 or 3 according to the lowest level input that has a significant impact on the fair value measurement. The Company performs a review of the fair value hierarchy classification on an annual basis. Changes in the observability of valuation inputs may result in a reclassification of certain financial assets or financial liabilities within the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgment. The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above categories, as of the periods presented. As of June 30, 2024 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 59,516 $ - $ - $ 59,516 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 2,688 - 2,688 Total assets $ 59,516 $ 2,688 $ - $ 62,204 Other long-term liabilities Deferred compensation $ - $ 2,291 $ - 2,291 Total liabilities $ - $ 2,291 $ - $ 2,291 As of December 31, 2023 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 226,715 $ - $ - $ 226,715 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 1,866 - 1,866 Total assets $ 226,715 $ 1,866 $ - $ 228,581 Other long-term liabilities Deferred compensation $ - $ 2,398 $ - 2,398 Total liabilities $ - $ 2,398 $ - $ 2,398 ________________ (1 ) Money market funds are classified as cash equivalents in the Company’s unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value. (2) Fair value of insurance policies represents their cash surrender value based on the underlying investments in the account which is determined based on quoted prices for identical or similar financial instruments in active markets.

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	6. Marketable Securities Marketable securities consist of commercial paper, certificates of deposit, and U.S. Treasury and agency debt, and are classified as held-to-maturity. Investments held in marketable securities had contractual maturities of less than nine months as of June 30, 2024 . As the Company invests in short-term and high credit quality marketable securities, the Company expects to receive fixed par value without any loss of principle at the maturity of each security. Therefore, an allowance for expected credit losses is not recognized as of June 30, 2024 and December 31, 2023 . The following presents information about the Company’s marketable securities: As of June 30, 2024 Sector Amortized Cost Allowance for Credit Losses Net Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial $ 67,444 $ - $ 67,444 $ - $ ( 48 ) $ 67,396 Industrial 22,410 - 22,410 - ( 26 ) 22,384 Total $ 89,854 $ - $ 89,854 $ - $ ( 74 ) $ 89,780 As of December 31, 2023 Sector Amortized Cost Allowance for Credit Losses Net Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial $ 44,645 $ - $ 44,645 $ - $ ( 14 ) $ 44,631 Total $ 44,645 $ - $ 44,645 $ - $ ( 14 ) $ 44,631 The fair value of marketable securities in the Government major security type is classified as a Level 1 in the Company’s fair value hierarchy described in Note 5. The fair values of the remaining major security types are classified as Level 2. The following table presents information about the Company’s investments that were in an unrealized loss position and for which an other-than-temporary impairment has not been recognized in earnings: As of June 30, 2024 As of December 31, 2023 Aggregate fair value of investments with unrealized losses (1) 78,419 $ 33,578 Aggregate amount of unrealized losses ( 74 ) ( 14 ) _________________ (1) Investments have been in a continuous loss position for less than 12 months

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	7. Intangible Assets and Goodwill Intangible Assets The following table presents information about capitalized software development costs: Three Months Ended June 30, Six Months Ended June 30, Capitalized software development costs 2024 2023 2024 2023 Capitalized $ 4,048 $ 3,879 $ 8,087 $ 7,733 Amortized 4,449 3,668 8,867 7,284 As of June 30, 2024 Gross Accumulated Amount Amortization Net Amount Internally developed software $ 109,396 $ ( 83,522 ) $ 25,874 Non-compete 6,194 ( 4,147 ) 2,047 Customer relationships 72,512 ( 41,740 ) 30,772 Technology 45,791 ( 32,111 ) 13,680 Trade name 7,748 ( 3,083 ) 4,665 Total intangible assets $ 241,641 $ ( 164,603 ) $ 77,038 As of December 31, 2023 Gross Accumulated Amount Amortization Net Amount Internally developed software $ 101,471 $ ( 74,655 ) $ 26,816 Non-compete 6,194 ( 3,738 ) 2,456 Customer relationships 72,512 ( 37,601 ) 34,911 Technology 45,791 ( 30,178 ) 15,613 Trade name 7,748 ( 2,739 ) 5,009 Total intangible assets $ 233,716 $ ( 148,911 ) $ 84,805 Total amortization expense associated with identifiable intangible assets was as follows : Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total amortization expense associated with identifiable intangible assets $ 7,863 $ 7,292 $ 15,693 $ 14,531 Impairment and write-off of intangible assets Impairment and write-off expense related to internally developed software projects was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Impairment and write-off of intangible assets $ - $ - $ 162 $ - Goodwill There were no changes in goodwill during the six months ended June 30, 2024 .

Leases and Leasing Commitments

Leases and Leasing Commitments	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Leases and Leasing Commitments	8. Leases and Leasing Commitments Supplemental cash flow information related to the Company’s operating and finance leases was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases $ 73 $ 140 $ 150 $ 305 Operating cash flows for finance leases 1,486 1,466 2,954 2,914 Operating cash flows for operating leases 577 559 1,146 1,106 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities - 81 - 81 Operating lease liabilities - - - 362 The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, Lease expense 2024 2023 2024 2023 Finance lease expense: Amortization of right-of-use assets $ 568 $ 529 $ 1,156 $ 1,060 Interest on lease liabilities 1,656 1,646 3,308 3,287 Operating lease expense 408 432 822 864 Short-term lease expense - - - - Variable lease expense 74 54 148 107 Total lease expense $ 2,706 $ 2,661 $ 5,434 $ 5,318

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Long-Term Debt	9. Long-Term Debt Long-term debt as of June 30, 2024 and December 31, 2023: As of June 30, 2024 As of December 31, 2023 Term loan facility $ 62,563 $ 63,375 Promissory note payable for land acquisition 13,900 13,900 Total principal due 76,463 77,275 Current portion of term loan and promissory notes ( 6,425 ) ( 6,425 ) Unamortized portion of debt issuance costs ( 954 ) ( 1,090 ) Long-term debt $ 69,084 $ 69,760 On December 29, 2022 the Company, through its wholly-owned subsidiary, AvidXchange, Inc., entered into a credit agreement (as subsequently amended, the "2022 Credit Agreement") with KeyBank National Association ("KeyBank") to replace in its entirety its previous senior secured credit facility. The outstanding balances of the previous senior secured credit facility were repaid with the Company's cash balances and the proceeds from borrowing under the 2022 Credit Agreement. The 2022 Credit Agreement has a term of five years and consists of a 5-year revolving credit facility (the "2022 Revolver") and a five-year term loan facility (the "2022 Term Loan"). Under the 2022 Credit Agreement and subject to specific conditions, the Company may request, and the lenders have the right, but not the obligation, to increase the 2022 Revolver or add an additional term loan facility by an aggregate amount (for all such increases) not to exceed $ 50,000 as of June 30, 2024. The 2022 Credit Agreement has a term of five years and makes available to the Company facilities in an aggregate amount of $ 95,000 and consists of: • $ 30,000 pursuant to the 2022 Revolver; and • $ 65,000 pursuant to the 2022 Term Loan. Letters of credit may be issued by KeyBank pursuant to the 2022 Credit Agreement and the availability under the 2022 Revolver will be reduced by any outstanding letters of credit. As June 30, 2024 , no letters of credit were outstanding. As of June 30, 2024, the aggregate amount available to borrow under the 2022 Credit Agreement was $ 30,000 . As of June 30, 2024, the effective interest rate of the 2022 Term Loan was 8.23 % . Proceeds from the 2022 Term Loan and corporate cash were used to pay in full all outstanding debt and expenses under the previous senior secured credit facility, and the 2022 Revolver may be used to fund working capital and for general corporate purposes. The maturity date for the 2022 Revolver and 2022 Term Loan is December 29, 2027 . The Company may voluntarily pre-pay all or any part of the 2022 Revolver or 2022 Term Loan without premium or penalty, subject to concurrent payments of accrued and unpaid interest and any applicable breakage costs. Interest on the loans under the 2022 Credit Agreement is equal to the daily simple secured overnight financing rate ("SOFR"), term SOFR or a base rate, plus an applicable margin. The applicable margin is between 2.5 % and 3.0 % for daily simple SOFR and term SOFR loans (plus a SOFR adjustment between 0.1 % and 0.25 %), and between 1.5 % and 2.0 % for base rate loans. The applicable margin fluctuates based on the ratio of debt under the 2022 Credit Agreement to the Company’s consolidated software revenue. The Company may elect one-, three- or six-month interest periods in connection with term SOFR. The base rate is equal to the higher of KeyBank’s prime rate, the federal funds effective rate plus 0.5 %, or one-month term SOFR plus 1.0 %. For purposes of the 2022 Credit Agreement, daily simple SOFR, term SOFR and the base rate will never be less than 0.5 %. The principal amount of the 2022 Term Loan amortizes at a rate of 2.5 % per year for the first two years and 5 % per year for the last three years, payable in equal quarterly installments. Additional principal payments are due in certain circumstances, and subject to certain limitations, including upon a sale of assets or upon receipt of proceeds of casualty insurance or condemnation. The 2022 Credit Agreement contains certain customary representations and warranties and affirmative and negative covenants. The affirmative covenants require the Company to provide the lenders with certain financial statements, budgets, compliance certificates and other documents and reports and to comply with certain laws. The negative covenants restrict the Company’s ability to incur additional indebtedness, create additional liens on its assets, make certain investments, dispose of its assets or engage in a merger or other similar transaction or engage in transactions with affiliates, which are subject, in each case, to the various exceptions and conditions described in the 2022 Credit Agreement. The negative covenants further restrict the Company’s ability to make certain restricted payments, including the payment of dividends in certain limited circumstances. The 2022 Credit Agreement also contains three financial covenants, measured on a consolidated basis. First, there must be liquidity (which is defined as availability under the 2022 Revolver, plus unrestricted cash) that is more than the greater of (1) $ 35,000 , and (2) 35 % of the Total Commitment Amount (as defined in the 2022 Credit Agreement). Second, as of the end of each quarter, total revenue on a trailing four-quarter basis must be greater than the requirements set forth in the 2022 Credit Agreement. Third, for each period of four consecutive quarters ending on December 31, 2024, and at the end of each fiscal quarter thereafter, Consolidated EBITDA (as defined in the 2022 Credit Agreement) must not be less than $ 10,000 . The Company was in compliance with its financial debt covenants as of June 30, 2024 . The 2022 Credit Agreement also includes certain customary events of default. If an event of default occurs and is continuing, the lenders are entitled to take various actions, including the acceleration of the maturity of all loans and to take all actions permitted to be taken by a secured creditor with respect to the collateral for the 2022 Credit Agreement and under applicable law. The obligations under the 2022 Credit Agreement are secured by: • substantially all of the tangible and intangible assets of the Company and its material subsidiaries, except for client funds, client funds accounts (as such terms are defined in the 2022 Credit Agreement) and existing real estate, and • the capital stock of the Company’s material subsidiaries. Under the 2022 Credit Agreement, the Company's wholly-owned subsidiaries, AvidXchange, Inc. and AFV Commerce, Inc., are the only borrowers, and AvidXchange, Inc.'s parent holding company and certain subsidiaries of AvidXchange, Inc. and AFV Commerce, Inc. are co-guarantors. Revolving Credit Facility There was no balance outstanding under the 2022 Revolver as of June 30, 2024 or December 31, 2023 . The Company is required to pay on a quarterly basis a commitment fee of 0.3 % per annum with respect to the amount of the 2022 Revolver. Deferred Financing Costs The Company has $ 528 and $ 604 in deferred financing costs included in other noncurrent assets and deposits, and $ 954 and $ 1,090 of deferred financing costs associated with its term loans recorded net of long-term debt as of June 30, 2024 and December 31, 2023, respectively. Amortization of deferred financing costs was $ 106 and $ 110 for the three months ended June 30, 2024 and 2023, respectively, and $ 212 and $ 220 for the six months ended June 30, 2024 and 2023, respectively, which is presented in the consolidated statements of operations as interest expense. Land Promissory Notes The Company has two promissory notes executed in connection with the purchase of land parcels and improvements adjacent to its Charlotte, North Carolina headquarters campus. The aggregate outstanding principal amount wa s $ 13,900 as of June 30, 2024 and will be paid in two remaining equal annual payments of $ 4,800 and a final annual payment of $ 4,300 , plus accrued interest at 6.75 %.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2024
Stockholders' Equity Note [Abstract]
Stockholders' Equity	10. Stockholders’ Equity The holders of common stock are entitled to one vote for each share. Authorized Shares The Company is authorized to issue 1,600,000,000 shares of common stock, $ 0.001 par value per share, and 50,000,000 shares of preferred stock, $ 0.001 par value per share. Common Stock At June 30, 2024, the Company had reserved a total of 53,213,576 of its 1,600,000,000 shares of common stock for future issuance as follows: As of June 30, 2024 Outstanding stock options 7,556,543 Restricted stock units 10,986,075 Available for future issuance under stock award plans 26,722,129 Available for future issuance under employee stock purchase plan 7,948,829 Total common shares reserved for future issuance 53,213,576

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	11. Stock-Based Compensation Stock Plans The Company maintains its 2021 Long-Term Incentive Plan ("2021 Plan") under which it grants stock awards to its employees, directors and non-employee third parties. On January 1, 2024, the number of shares of common stock available to issue under the 2021 Plan automatically increased by 10,204,201 shares. As of June 30, 2024, the Company had 26,722,129 shares allocated to the 2021 Plan, but not yet issued or granted as an award. The Company also maintains its 2021 Employee Stock Purchase Plan ("ESPP"), under which eligible employees may purchase the Company’s common stock through accumulated payroll deductions. On January 1, 2024, the number of shares of common stock reserved for issuance under the ESPP automatically increased by 2,040,840 . As of June 30, 2024 , the number of shares of common stock reserved for issuance under the ESPP was 7,948,829 . Stock Options Stock options granted under the Company's current and prior equity incentive plans have various vesting periods ranging from fully-vested on the date of grant to vesting over a period of three or four years . The term for each incentive stock option under these plans is ten years from the grant date, or five years for a grant to a ten percent owner optionee, in each case assuming continued employment. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model. Stock option activity for the six months ended June 30, 2024 was as follows: Stock Options Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance as of December 31, 2023 8,175,088 $ 8.64 7.22 $ 31,135 Granted 346,935 12.34 Exercised ( 802,043 ) 6.73 Cancelled ( 162,911 ) 9.20 Expired ( 526 ) 0.26 Balance as of June 30, 2024 7,556,543 $ 9.00 6.98 $ 23,816 Vested and exercisable 4,953,507 $ 8.71 6.35 $ 17,061 As of June 30, 2024 , the total unamortized stock-based compensation expense related to the unvested stock options was $ 10,418 , which the Company expects to amortize over a weighted average period of 2.2 years. Restricted Stock Units RSUs have a vesting period generally of one to four years . Any unvested RSUs are forfeited upon termination of employment. The grant date value of RSUs is equal to the closing price of the Company’s stock on the date of grant, or, if not a trading day, the closing price of the previous trading day. RSUs granted prior to the Company's IPO have a term of seven years , or three years for time vested RSUs after termination of employment and were also subject to a performance condition upon a predefined liquidity event such as an IPO or a change in control. The performance condition was satisfied upon completion of the Company's IPO. Prior to the IPO, RSUs were valued at the estimated value of a share of common stock at the date of grant. RSU activity for the six months ended June 30, 2024 was as follows: Restricted Stock Units Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance as of December 31, 2023 8,919,024 $ 8.98 Granted 5,309,713 12.22 Released ( 2,766,480 ) 9.17 Cancelled ( 476,182 ) 9.62 Balance as of June 30, 2024 10,986,075 $ 10.48 As of June 30, 2024 , the total unamortized stock-based compensation expense related to the unvested RSUs was $ 104,338 , which the Company will amortize over a weighted average period of 3.0 years. Stock-Based Compensation Expense Stock-based compensation expense from stock options and RSUs, reduced for actual forfeitures, was included in the following line items in the accompanying consolidated statement of operations: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of revenues $ 1,587 $ 1,311 $ 2,784 $ 2,328 Sales and marketing 1,453 1,400 2,551 2,535 Research and development 2,924 2,980 6,582 5,199 General and administrative 6,153 5,178 10,966 9,468 Total $ 12,117 $ 10,869 $ 22,883 $ 19,530 Employee Stock Purchase Plan Stock-based compensation expense for the ESPP is based on the estimated fair value of the option to purchase shares at a discount and uses grant date inputs including the purchase discount, expected contributions and stock price. Total ESPP expense recorded in the Company's consolidated statements of operations was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 ESPP expense $ 202 $ 152 $ 395 $ 422

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies Cybersecurity Incident The Company completed its investigation of its April 2023 cybersecurity incident in the fourth quarter of 2023. The Company has tendered claims for certain expenses incurred in connection with this event. The extent to which the Company's insurance will cover such expenses is substantially complete as of June 30, 2024. Insurance recoveries are recorded as a reduction of general and administrative expense. As of June 30, 2024, the Company has recorded $ 2,110 as receivable for insurance recoveries. The Company incurred professed and legal fees related to this cyber incident of $ 123 and $ 302 in the three and six months ended June 30, 2024, respectively, and $ 3,616 in the second fiscal quarter of 2023 .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company’s effective tax rate for the three months ended June 30, 2024 and 2023 was 21.4 % and ( 0.7 )% , respectively. The Company’s effective tax rate for the six months ended June 30, 2024 and 2023 was ( 74.2 )% and ( 0.6 )% , respectively. The Company's effective tax rate was a result of estimated tax losses for the fiscal year to date offset by the increase in the valuation allowance in the net operating loss carryforwards. Tax expense includes current tax expense for estimated state income taxes and noncurrent federal and state taxes related to non-deductibility of goodwill in the future and other book to tax differences. For the six months ended June 30, 2024, the Company has utilized the discrete effective tax rate method, as allowed by ASC 740-270-30-18, Income Taxes—Interim Reporting , to calculate its interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. The Company believes that, at this time, the use of this discrete method is more appropriate than the annual effective tax rate method as its full-year forecasted pre-tax income, relative to its year-to-date loss, has the potential to distort its estimated annual effective tax rate.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Consolidation and Presentation	Basis of Consolidation and Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial position, results of operations, changes in stockholders’ equity, and cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any other future annual or interim period. The unaudited consolidated balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. All significant intercompany accounts and transactions have been eliminated. There are no items of comprehensive income. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2023 .
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates reflected in these unaudited consolidated financial statements include, but are not limited to, the allowance for credit losses and returns, useful lives assigned to fixed and intangible assets, capitalization of internal-use software, deferral of customer origination costs, the fair value of intangible assets acquired in a business combination, the fair value of goodwill, and the recoverability of deferred income taxes. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates.
Concentrations	Concentrations Significant Services A substantial portion of the Company’s revenue is derived from interchange fees earned on payment transactions processed as virtual commercial cards (“VCC”). The Company utilizes service providers to process these transactions. Revenue from one service provider represented 27 % and 20 % of total revenue for the three months ended June 30, 2024 and 2023, respectively, and 20% of total revenue in each of the six months ended June 30, 2024 and 2023. Accounts receivable from this service provider represented 29 % and 12 % of accounts receivable, net as of June 30, 2024 and December 31, 2023 , respectively. Revenue from a second provider represented 19 % and 27 % of total revenue for the three months ended June 30, 2024 and 2023, respectively, and 26 % and 27 % of total revenue for the six months ended June 30, 2024 and 2023 , respectively. Accounts receivable from this second service pro vider represented 19 % and 38 % of accounts receivable, net as of June 30, 2024 and December 31, 2023, respectively. Future regulation or changes by the card brand payment networks could have a substantial impact on interchange rates and the Company’s revenue from VCC transactions. If interchange rates decline, whether due to actions by the card brand payment networks or future regulation, or if merchant/suppliers elect to receive payments that result in lower or no interchange revenue such as check or apply fees in consideration of accepting electronic forms of payment, the Company’s total operating revenues, operating results, prospects for future growth and overall business could be materially affected. The Company’s revenue from VCC transactions is also impacted by fees charged by service providers to process our VCC transactions.
Restructuring costs	Restructuring costs During the fourth quarter of 2023, the Company initiated a restructuring plan to generate cost savings and improve effectiveness of the organization which resulted in a reduction in the Company’s U.S. workforce. The plan was implemented in the fourth quarter of 2023 and completed in the second quarter of 2024. There were no restructuring costs recorded in the three months ended June 30, 2024. The Company recorded restructuring costs of $ 1,157 in the six months ended June 30, 2024, and $ 3,037 cumulatively, from one-time severance charges in connection with this plan. Restructuring costs are included in general and administrative expenses in the consolidated statements of operations.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase that are not recorded as marketable securities to be cash equivalents. The carrying values of cash and cash equivalents approximate their fair values due to the short-term nature of these instruments. Cash in the Company’s bank accounts may exceed federally insured limits.
Marketable Securities	Marketable Securities Marketable securities consist of short-term investments in short-term commercial paper, certificates of deposits and various U.S. government backed securities. To reflect its intention, the Company classifies its marketable securities as held-to-maturity at the time of purchase. As a result, the marketable securities are recorded at amortized cost and any gains or losses realized upon maturity are reported in other income (expense) in the consolidated statements of operations.
Accounts Receivable, Supplier Advances and Allowance for Credit Losses	Accounts Receivable, Supplier Advances and Allowance for Credit Losses Accounts receivable represent amounts due from the Company’s VCC service providers for interchange fees earned and from buyer customers who have been invoiced for the use of the Company’s software offerings, but for whom payments have not been received. Accounts receivable from VCC service providers are presented net of an allowance for returns for transactions subsequently canceled that do not ultimately settle through the payment network. Accounts receivable from buyer customers are presented net of allowances for credit losses and returns. The Company estimates expected credit losses related to accounts receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined individually or collectively depending on whether the accounts receivable balances share similar risk characteristics. The allowance for returns for VCC transactions subsequently canceled are assessed at each period end and recognized as a reduction of revenue. The allowances for buyer customer’s credit losses and returns are assessed at each period end and are recognized as bad debt expense within general and administrative expenses in the consolidated statements of operations and as a reduction of revenue, respectively. A buyer customer receivable is written off against the allowance when it is determined that all collection efforts have been exhausted and the potential for recovery is considered remote. Historically, losses related to customer nonpayment have been immaterial and most of the accounts receivable balances have been current. Supplier advances receivable represent amounts that have been advanced as part of the AvidXchange’s Payment Accelerator product but have not been collected. Advances are collected from the buyer customer once the buyer initiates the transfer of funds for the invoice that was previously advanced. If the buyer does not transfer the funds as expected, the Company is exposed to losses. The Company’s experience with such delinquencies by buyer customers has been immaterial. Supplier advances receivable are stated net of expected credit losses. The Company estimates expected credit losses related to supplier advances receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined individually or collectively depending on whether the accounts receivable balances share similar risk characteristics. The allowance for credit losses for supplier advances is assessed at period end and the measurement of the allowance is included as a component of cost of revenues in the Company’s consolidated statements of operations. Supplier advances receivable balances are charged against the allowance when the Company determines it is probable the receivable will not be recovered after collection efforts and legal actions have been exhausted. The Company classifies the fees charged to supplier customers as cash flows from operating activities with the remaining accelerated advancements and recoupments classified as cash flows from investing activities on a net basis within the consolidated statements of cash flows.
Restricted Funds Held for Customers and Payment Service Obligations	Restricted Funds Held for Customers and Payment Service Obligations Restricted funds held for customers and the corresponding liability of payment service obligations represent funds that are collected from customers for payments to their suppliers. The Company determines the balances of restricted funds held for customers, and the corresponding payment services obligations, by reconciling cash held by financial institutions and the corresponding payments in transit at the end of each period. The balance of these obligations may fluctuate from period to period depending on the timing of the period end and the timing of when outstanding payments clear with financial institutions. The Company is registered as a money services business with the Financial Crimes Enforcement Network. Payment service obligations are comprised of outstanding daily transaction liabilities per state regulatory average daily transaction liability report requirements and other unregulated settlements with payees, which do not constitute a regulatory liability event under reporting requirements. As of June 30, 2024 As of December 31, 2023 Outstanding Transaction Liabilities $ 1,175,492 $ 1,568,280 Other unregulated settlements 17,963 10,376 Total payment service obligations $ 1,193,455 $ 1,578,656 The Company historically transmitted buyer customer funds using a legacy model pursuant to which buyer customer funds were held in trust accounts that were maintained and operated by a trustee pending distribution to suppliers in accordance with instructions provided through the Company’s platform. The Company is not the trustee or beneficiary of the trusts which hold these buyer deposits; accordingly, the Company does not record these assets and offsetting liabilities on its consolidated balance sheets. The Company has largely phased out this model although certain banks that resell its products and services continue to leverage a similar structure. The Company contractually earns interest on funds held for certain buyers. The amount of Company and bank customer funds held in all trust-related and similar accounts was approximately $ 12,461 and $ 6,269 as of June 30, 2024 and December 31, 2023, respectively. The Company has transitioned most payment transmission activity to the money transmitter license model and obtained a money transmitter license in all states which require licensure. This model enables AvidXchange to provide commercial payment services to businesses through its “for the benefit of customer” bank accounts, also known as FBO, that are restricted for such purposes. The restricted funds held for customers are restricted for the purpose of satisfying the customer’s supplier obligations and are not available for general business use by the Company. The Company maintains these funds in liquid cash accounts and contractually earns interest on these funds held for customers. These funds are recognized as a restricted cash asset and a corresponding liability is recorded for payments due to their suppliers on the Company’s consolidated balance sheets. Restricted funds held for customers are included in the cash and cash equivalents on the consolidated statements of cash flows.
Stock-Based Compensation	Stock-Based Compensation Compensation cost for stock-based awards issued to employees and outside directors, including stock options and restricted stock units (“RSUs”), is measured at fair value on the date of grant. The fair value of stock options is estimated using a Black-Scholes option-pricing model, while the fair value of RSUs is determined using the fair value of the Company’s underlying common stock. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award. Stock-based compensation expense for RSUs with performance conditions is recognized over the requisite service period on an accelerated-basis as long as the performance condition in the form of a specified liquidity event is probable to occur. In the case of equity issued in lieu of cash bonus, expense is recognized in the period the cash bonus was earned.
Nonqualified Deferred Compensation Plan	Nonqualified Deferred Compensation Plan The Company adopted a nonqualified, deferred compensation plan effective October 1, 2015, which is an unfunded plan created for the benefit of a select group of management or highly compensated employees. The purpose of the plan is to attract and retain key employees by providing them with an opportunity to defer receipt of a portion of their compensation. It is exempt from the participation, vesting, funding, and fiduciary requirements set forth in Title I of the Employee Retirement Income Security Act of 1974, as amended. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the nonqualified deferred compensation plan, as directed by each participant. The Company has established a ‘rabbi trust’ that serves as an investment to shadow the deferred compensation plan liability. The assets of the rabbi trust primarily consist of trust-owned life insurance policies which are recorded at cash surrender value and are included in other noncurrent assets. The change in cash surrender value of the life insurance policies in the rabbi trust is recorded in other income (expense) on the Company's unaudited consolidated statements of operations. The assets of the rabbi trust are general assets of the Company and as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. The related deferred compensation liabilities are included in other long-term liabilities. The Company has recorded these assets and liabilities at their fair value. In association with this plan, $ 2,688 and $ 1,866 were included in other noncurrent assets and $ 2,291 and $ 2,398 were included in noncurrent liabilities as of June 30, 2024 and December 31, 2023 , respectively, on the Company's unaudited consolidated balance sheets.
Contingent Liabilities	Contingent Liabilities Contingent liabilities require significant judgment in estimating potential losses for legal claims. The Company reviews significant new claims and litigation for the probability of an adverse outcome. Estimates are recorded as liabilities when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable. Disclosure is required when there is a reasonable possibility that the ultimate loss will materially exceed the recorded provision. Contingent liabilities are often resolved over long periods of time. Estimating probable losses requires analysis of multiple forecasts that often depend on judgments about potential actions by third parties such as regulators, and the estimated loss can change materially as individual claims develop.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Standards In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements . The amendments in this update that apply to public business entities clarify the accounting for leasehold improvements associated with common control leases. The adoption of this guidance on January 1, 2024 did no t have an impact on the Company's consolidated financial statements . Accounting Pronouncements Issued but Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective for calendar year-end public business entities in the 2025 annual period and in 2026 for interim periods, with early adoption permitted. The Company is assessing the impact of this guidance on its financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Payment Service Obligations	Payment service obligations are comprised of outstanding daily transaction liabilities per state regulatory average daily transaction liability report requirements and other unregulated settlements with payees, which do not constitute a regulatory liability event under reporting requirements. As of June 30, 2024 As of December 31, 2023 Outstanding Transaction Liabilities $ 1,175,492 $ 1,568,280 Other unregulated settlements 17,963 10,376 Total payment service obligations $ 1,193,455 $ 1,578,656

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Revenues Disaggregated by Type of Services Performed	The table below presents the Company’s revenues disaggregated by type of services performed. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Software revenue $ 29,914 $ 27,248 $ 59,602 $ 54,216 Payment revenue 74,183 63,228 149,385 122,409 Services revenue 1,035 678 1,743 1,351 Total revenues $ 105,132 $ 91,154 $ 210,730 $ 177,976
Information on Accounts Receivable and Contract Liabilities	The table below presents information on accounts receivable and contract liabilities. As of June 30, 2024 As of December 31, 2023 Trade accounts receivable, net $ 19,953 $ 16,261 Payment processing receivable, net 30,133 30,428 Accounts receivable, net $ 50,086 $ 46,689 Contract liabilities $ 24,858 $ 27,593
Significant Changes in Contract Liabilities Balance	Significant changes in the contract liabilities balance are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue recognized included in beginning of period balance $ ( 3,018 ) $ ( 3,523 ) $ ( 6,409 ) $ ( 6,014 ) Cash received, excluding amounts recognized as revenue during the period 1,614 3,830 3,674 6,059
Summary of Changes in Allowance for Credit Losses And Returns	The tables below present a summary of changes in the Company’s allowances for credit losses and returns for the six months ended June 30, 2024 and 2023: Accounts Receivable Allowance for Credit Losses Allowance for Returns Supplier Advances Receivable Allowance Allowance balance, December 31, 2023 $ 2,142 $ 2,089 $ 1,333 Amounts charged to contra revenue, cost of revenues and expenses 286 ( 105 ) 654 Amounts written off as uncollectable ( 28 ) - ( 1,216 ) Recoveries of amounts previously written off - - 572 Deduction released to revenue - - - Allowance balance, June 30, 2024 $ 2,400 $ 1,984 $ 1,343 Accounts Receivable Allowance for Credit Losses Allowance for Returns Supplier Advances Receivable Allowance Allowance balance, December 31, 2022 $ 1,539 $ 1,584 $ 1,872 Amounts charged to contra revenue, cost of revenues and expenses 1,330 225 50 Amounts written off as uncollectable ( 233 ) - ( 1,262 ) Recoveries of amounts previously written off - - 732 Deduction released to revenue - ( 93 ) - Allowance balance, June 30, 2023 $ 2,636 $ 1,716 $ 1,392
Schedule of Remaining Performance Obligation	Remaining performance obligation consisted of the following: Current Noncurrent Total As of June 30, 2024 $ 14,895 $ 20,246 $ 35,141 As of December 31, 2023 15,031 20,403 35,434
Information about Deferred Contract Costs	The following tables present information about deferred contract costs: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Capitalized sales commissions and implementation costs $ 3,827 $ 2,539 $ 6,480 $ 5,377 Amortization of deferred contract costs Costs to obtain contracts included in sales and marketing expense $ 1,692 $ 1,465 $ 3,243 $ 2,939 Costs to fulfill contracts included in cost of revenue $ 1,546 $ 1,585 3,095 3,154

Income (Loss) Per Common Share

Income (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Summary of Common Share Equivalent Securities Excluded from the Calculation Weighted Average Common Shares Outstanding	The following common share equivalent securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Anti-Dilutive Common Share Equivalents 2024 2023 2024 2023 Stock options 158,920 8,398,693 7,556,543 8,398,693 Restricted stock units 102,523 10,846,847 10,986,075 10,846,847 Employee stock purchase plan 3,988 52,980 60,450 52,980 Total anti-dilutive common share equivalents 265,431 19,298,520 18,603,068 19,298,520
Summary of Basic and Diluted Net Income (Loss) Per Common Share	Basic and diluted net income (loss) per common share is calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income (loss) $ 436 $ ( 18,771 ) $ ( 573 ) $ ( 34,761 ) Net income (loss) attributable to common stockholders $ 436 $ ( 18,771 ) $ ( 573 ) $ ( 34,761 ) Denominator: Weighted-average common shares outstanding, basic 207,025,967 201,559,007 205,961,720 200,734,555 Weighted-average effect of potentially dilutive securities: Stock options 1,322,945 - - - Restricted stock units 2,021,647 - - - Weighted-average common shares outstanding, diluted 210,370,559 201,559,007 205,961,720 200,734,555 Net income (loss) per common share, basic $ 0.00 $ ( 0.09 ) $ 0.00 $ ( 0.17 ) Net income (loss) per common share, diluted $ 0.00 $ ( 0.09 ) $ 0.00 $ ( 0.17 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis using the above categories, as of the periods presented. As of June 30, 2024 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 59,516 $ - $ - $ 59,516 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 2,688 - 2,688 Total assets $ 59,516 $ 2,688 $ - $ 62,204 Other long-term liabilities Deferred compensation $ - $ 2,291 $ - 2,291 Total liabilities $ - $ 2,291 $ - $ 2,291 As of December 31, 2023 Description Level 1 Level 2 Level 3 Total Cash equivalents Money market mutual funds (1) $ 226,715 $ - $ - $ 226,715 Rabbi trust-owned life insurance policies (at cash surrender value) (2) - 1,866 - 1,866 Total assets $ 226,715 $ 1,866 $ - $ 228,581 Other long-term liabilities Deferred compensation $ - $ 2,398 $ - 2,398 Total liabilities $ - $ 2,398 $ - $ 2,398 ________________ (1 ) Money market funds are classified as cash equivalents in the Company’s unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value. (2) Fair value of insurance policies represents their cash surrender value based on the underlying investments in the account which is determined based on quoted prices for identical or similar financial instruments in active markets.

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Information about Marketable Securities	The following presents information about the Company’s marketable securities: As of June 30, 2024 Sector Amortized Cost Allowance for Credit Losses Net Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial $ 67,444 $ - $ 67,444 $ - $ ( 48 ) $ 67,396 Industrial 22,410 - 22,410 - ( 26 ) 22,384 Total $ 89,854 $ - $ 89,854 $ - $ ( 74 ) $ 89,780 As of December 31, 2023 Sector Amortized Cost Allowance for Credit Losses Net Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Financial $ 44,645 $ - $ 44,645 $ - $ ( 14 ) $ 44,631 Total $ 44,645 $ - $ 44,645 $ - $ ( 14 ) $ 44,631
Schedule of Investments in Unrealized Loss Position and for which an Other-than-Temporary Impairment has not been Recognized in Earnings	The following table presents information about the Company’s investments that were in an unrealized loss position and for which an other-than-temporary impairment has not been recognized in earnings: As of June 30, 2024 As of December 31, 2023 Aggregate fair value of investments with unrealized losses (1) 78,419 $ 33,578 Aggregate amount of unrealized losses ( 74 ) ( 14 ) _________________ (1) Investments have been in a continuous loss position for less than 12 months

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Capitalized Software Development Costs	The following table presents information about capitalized software development costs: Three Months Ended June 30, Six Months Ended June 30, Capitalized software development costs 2024 2023 2024 2023 Capitalized $ 4,048 $ 3,879 $ 8,087 $ 7,733 Amortized 4,449 3,668 8,867 7,284
Schedule of Intangible Assets	As of June 30, 2024 Gross Accumulated Amount Amortization Net Amount Internally developed software $ 109,396 $ ( 83,522 ) $ 25,874 Non-compete 6,194 ( 4,147 ) 2,047 Customer relationships 72,512 ( 41,740 ) 30,772 Technology 45,791 ( 32,111 ) 13,680 Trade name 7,748 ( 3,083 ) 4,665 Total intangible assets $ 241,641 $ ( 164,603 ) $ 77,038 As of December 31, 2023 Gross Accumulated Amount Amortization Net Amount Internally developed software $ 101,471 $ ( 74,655 ) $ 26,816 Non-compete 6,194 ( 3,738 ) 2,456 Customer relationships 72,512 ( 37,601 ) 34,911 Technology 45,791 ( 30,178 ) 15,613 Trade name 7,748 ( 2,739 ) 5,009 Total intangible assets $ 233,716 $ ( 148,911 ) $ 84,805
Total Amortization Expense Associated with Identifiable Intangible Assets	Total amortization expense associated with identifiable intangible assets was as follows : Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total amortization expense associated with identifiable intangible assets $ 7,863 $ 7,292 $ 15,693 $ 14,531 Impairment and write-off of intangible assets Impairment and write-off expense related to internally developed software projects was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Impairment and write-off of intangible assets $ - $ - $ 162 $ -
Impairment and Write-off of Intangible Assets	Impairment and write-off expense related to internally developed software projects was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Impairment and write-off of intangible assets $ - $ - $ 162 $ -

Leases and Leasing Commitments

Leases and Leasing Commitments (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of Supplemental Cash Flow Information Related to Operating and Finance Leases	Supplemental cash flow information related to the Company’s operating and finance leases was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases $ 73 $ 140 $ 150 $ 305 Operating cash flows for finance leases 1,486 1,466 2,954 2,914 Operating cash flows for operating leases 577 559 1,146 1,106 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities - 81 - 81 Operating lease liabilities - - - 362
Schedule of Components of Lease Expense	The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, Lease expense 2024 2023 2024 2023 Finance lease expense: Amortization of right-of-use assets $ 568 $ 529 $ 1,156 $ 1,060 Interest on lease liabilities 1,656 1,646 3,308 3,287 Operating lease expense 408 432 822 864 Short-term lease expense - - - - Variable lease expense 74 54 148 107 Total lease expense $ 2,706 $ 2,661 $ 5,434 $ 5,318

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt as of June 30, 2024 and December 31, 2023: As of June 30, 2024 As of December 31, 2023 Term loan facility $ 62,563 $ 63,375 Promissory note payable for land acquisition 13,900 13,900 Total principal due 76,463 77,275 Current portion of term loan and promissory notes ( 6,425 ) ( 6,425 ) Unamortized portion of debt issuance costs ( 954 ) ( 1,090 ) Long-term debt $ 69,084 $ 69,760

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2024
Stockholders' Equity Note [Abstract]
Schedule of Common Stock Reserved for Future Issuance	At June 30, 2024, the Company had reserved a total of 53,213,576 of its 1,600,000,000 shares of common stock for future issuance as follows: As of June 30, 2024 Outstanding stock options 7,556,543 Restricted stock units 10,986,075 Available for future issuance under stock award plans 26,722,129 Available for future issuance under employee stock purchase plan 7,948,829 Total common shares reserved for future issuance 53,213,576

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	Stock option activity for the six months ended June 30, 2024 was as follows: Stock Options Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balance as of December 31, 2023 8,175,088 $ 8.64 7.22 $ 31,135 Granted 346,935 12.34 Exercised ( 802,043 ) 6.73 Cancelled ( 162,911 ) 9.20 Expired ( 526 ) 0.26 Balance as of June 30, 2024 7,556,543 $ 9.00 6.98 $ 23,816 Vested and exercisable 4,953,507 $ 8.71 6.35 $ 17,061
Summary of RSU Activity	RSU activity for the six months ended June 30, 2024 was as follows: Restricted Stock Units Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance as of December 31, 2023 8,919,024 $ 8.98 Granted 5,309,713 12.22 Released ( 2,766,480 ) 9.17 Cancelled ( 476,182 ) 9.62 Balance as of June 30, 2024 10,986,075 $ 10.48
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense from stock options and RSUs, reduced for actual forfeitures, was included in the following line items in the accompanying consolidated statement of operations: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of revenues $ 1,587 $ 1,311 $ 2,784 $ 2,328 Sales and marketing 1,453 1,400 2,551 2,535 Research and development 2,924 2,980 6,582 5,199 General and administrative 6,153 5,178 10,966 9,468 Total $ 12,117 $ 10,869 $ 22,883 $ 19,530
Schedule of Employee Stock Purchase Plan Expense	Total ESPP expense recorded in the Company's consolidated statements of operations was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 ESPP expense $ 202 $ 152 $ 395 $ 422

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023	Jun. 30, 2024 USD ($) Customer	Jun. 30, 2023	Dec. 31, 2023 USD ($)
Schedule Of Accounting Policies [Line Items]
Number of service providers accounted for more than 10% of revenue | Customer			2
Number of service providers accounted for more than 10% of accounts receivable | Customer			2
Restructuring charges	$ 0		$ 1,157
One-time severance charges			3,037
Customer funds held in trust accounts	12,461		12,461		$ 6,269
Deferred compensation plan assets	2,688		2,688		1,866
Deferred compensation plan liabilities	$ 2,291		$ 2,291		$ 2,398
ASU No.2023-01
Schedule Of Accounting Policies [Line Items]
Change in accounting principle, ASU, Adoption date	Jan. 01, 2024		Jan. 01, 2024
Change in accounting principle, ASU, adopted [true false]	true		true
Change in accounting principle, ASU, Immaterial effect [true false]	true		true
Total Revenues | Customer Concentration Risk | One Service Provider
Schedule Of Accounting Policies [Line Items]
Concentration risk percentage	27%	20%	26%	27%
Total Revenues | Customer Concentration Risk | Second Service Provider
Schedule Of Accounting Policies [Line Items]
Concentration risk percentage	19%	27%
Accounts Receivable | Customer Concentration Risk | One Service Provider
Schedule Of Accounting Policies [Line Items]
Concentration risk percentage			29%		12%
Accounts Receivable | Customer Concentration Risk | Second Service Provider
Schedule Of Accounting Policies [Line Items]
Concentration risk percentage			19%		38%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Payment Service Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Outstanding Transaction Liabilities	$ 1,175,492	$ 1,568,280
Other unregulated settlements	17,963	10,376
Total payment service obligations	$ 1,193,455	$ 1,578,656

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Schedule of Revenues Disaggregated by Type of Services Performed (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation Of Revenue [Line Items]
Total revenues	$ 105,132	$ 91,154	$ 210,730	$ 177,976
Software
Disaggregation Of Revenue [Line Items]
Total revenues	29,914	27,248	59,602	54,216
Payment
Disaggregation Of Revenue [Line Items]
Total revenues	74,183	63,228	149,385	122,409
Services
Disaggregation Of Revenue [Line Items]
Total revenues	$ 1,035	$ 678	$ 1,743	$ 1,351

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Information on Accounts Receivable and Contract Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Trade accounts receivable, net	$ 19,953	$ 16,261
Payment processing receivable, net	30,133	30,428
Accounts receivable, net	50,086	46,689
Contract liabilities	$ 24,858	$ 27,593

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Significant Changes in Contract Liabilities Balance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue recognized included in beginning of period balance	$ (3,018)	$ (3,523)	$ (6,409)	$ (6,014)
Cash received, excluding amounts recognized as revenue during the period	$ 1,614	$ 3,830	$ 3,674	$ 6,059

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Summary of Changes in Allowance for Credit Losses And Returns (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Accounts Receivable Allowance for Credit Losses
Accounts Notes And Loans Receivable [Line Items]
Allowance balance, Beginning Balance	$ 2,142	$ 1,539
Amounts charged to contra revenue, cost of revenues and expenses	286	1,330
Amounts written off as uncollectable	(28)	(233)
Allowance balance, Ending Balance	2,400	2,636
Accounts Receivable Allowance For Returns
Accounts Notes And Loans Receivable [Line Items]
Allowance balance, Beginning Balance	2,089	1,584
Amounts charged to contra revenue, cost of revenues and expenses	(105)	225
Deduction released to revenue		(93)
Allowance balance, Ending Balance	1,984	1,716
Supplier Advances Receivable Allowance
Accounts Notes And Loans Receivable [Line Items]
Allowance balance, Beginning Balance	1,333	1,872
Amounts charged to contra revenue, cost of revenues and expenses	654	50
Amounts written off as uncollectable	(1,216)	(1,262)
Recoveries of amounts previously written off	572	732
Allowance balance, Ending Balance	$ 1,343	$ 1,392

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Schedule of Remaining Performance Obligation (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Current	$ 14,895	$ 15,031
Noncurrent	20,246	20,403
Total	$ 35,141	$ 35,434

Revenue from Contracts with C_8

Revenue from Contracts with Customers - Additional Information (Details)	6 Months Ended
	Jun. 30, 2024
Disaggregation of Revenue [Line Items]
Capitalized Contract Cost, Amortization Method	straight-line basis
Contract acquisition and fulfillment costs, amortization period	5 years
Maximum
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation contractual term	5 years
Minimum
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation contractual term	2 years

Revenue from Contracts with C_9

Revenue from Contracts with Customers - Information about Deferred Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Capitalized Contract Cost [Line Items]
Capitalized sales commissions and implementation costs	$ 3,827	$ 2,539	$ 6,480	$ 5,377
Costs to Obtain Contracts | Sales and Marketing Expense
Capitalized Contract Cost [Line Items]
Amortization of deferred contract costs	1,692	1,465	3,243	2,939
Costs to Fulfill Contracts | Cost of Revenues
Capitalized Contract Cost [Line Items]
Amortization of deferred contract costs	$ 1,546	$ 1,585	$ 3,095	$ 3,154

Income (Loss) Per Common Shar_2

Income (Loss) Per Common Share - Summary of Common Share Equivalent Securities Excluded from the Calculation Weighted Average Common (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common share equivalents	265,431	19,298,520	18,603,068	19,298,520
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common share equivalents	158,920	8,398,693	7,556,543	8,398,693
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common share equivalents	102,523	10,846,847	10,986,075	10,846,847
Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common share equivalents	3,988	52,980	60,450	52,980

Income (Loss) Per Common Shar_3

Income (Loss) Per Common Share - Summary of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)	$ 436	$ (18,771)	$ (573)	$ (34,761)
Net income (loss) attributable to common stockholders	$ 436	$ (18,771)	$ (573)	$ (34,761)
Weighted-average common shares outstanding, basic	207,025,967	201,559,007	205,961,720	200,734,555
Weighted-average common shares outstanding, diluted	210,370,559	201,559,007	205,961,720	200,734,555
Net income (loss) per common share, basic	$ 0	$ (0.09)	$ 0	$ (0.17)
Net income (loss) per common share, diluted	$ 0	$ (0.09)	$ 0	$ (0.17)
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average effect of potentially dilutive securities	1,322,945
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average effect of potentially dilutive securities	2,021,647

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 62,204	$ 228,581
Total liabilities	2,291	2,398
Deferred compensation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	2,291	2,398
Money Market Mutual Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	59,516	226,715
Rabbi trust-owned life insurance policies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	2,688	1,866
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	59,516	226,715
Level 1 | Money Market Mutual Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	59,516	226,715
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	2,688	1,866
Total liabilities	2,291	2,398
Level 2 | Deferred compensation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	2,291	2,398
Level 2 | Rabbi trust-owned life insurance policies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 2,688	$ 1,866

Marketable Securities - Additio

Marketable Securities - Additional Information (Details)	6 Months Ended
	Jun. 30, 2024
Maximum
Marketable Securities [Line Items]
Marketable securities, contractual maturity period	9 months

Marketable Securities - Schedul

Marketable Securities - Schedule of Information about Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Marketable Securities, Amortized Cost	$ 89,854	$ 44,645
Marketable Securities, Net Amortized Cost	89,854	44,645
Marketable Securities, Gross Unrealized Losses	(74)	(14)
Marketable Securities, Fair Value	89,780	44,631
Financial
Schedule of Held-to-maturity Securities [Line Items]
Marketable Securities, Amortized Cost	67,444	44,645
Marketable Securities, Net Amortized Cost	67,444	44,645
Marketable Securities, Gross Unrealized Losses	(48)	(14)
Marketable Securities, Fair Value	67,396	$ 44,631
Industrial
Schedule of Held-to-maturity Securities [Line Items]
Marketable Securities, Amortized Cost	22,410
Marketable Securities, Net Amortized Cost	22,410
Marketable Securities, Gross Unrealized Losses	(26)
Marketable Securities, Fair Value	$ 22,384

Marketable Securities - Sched_2

Marketable Securities - Schedule of Investments in Unrealized Loss Position and for which an Other-than-Temporary Impairment has not been Recognized in Earnings (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Held-to-Maturity, Continuous Unrealized Loss Position [Abstract]
Aggregate fair value of investments with unrealized losses	$ 78,419	$ 33,578
Aggregate amount of unrealized losses	$ (74)	$ (14)

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Summary of Capitalized Software Development Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Movement in Capitalized Computer Software, Net [Roll Forward]
Capitalized	$ 4,048	$ 3,879	$ 8,087	$ 7,733
Amortized	$ 4,449	$ 3,668	$ 8,867	$ 7,284

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Additional Information (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in goodwill	$ 0

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 241,641	$ 233,716
Accumulated Amortization	(164,603)	(148,911)
Net Amount	77,038	84,805
Internally Developed Software
Finite-Lived Intangible Assets [Line Items]
Gross Amount	109,396	101,471
Accumulated Amortization	(83,522)	(74,655)
Net Amount	25,874	26,816
Non-compete
Finite-Lived Intangible Assets [Line Items]
Gross Amount	6,194	6,194
Accumulated Amortization	(4,147)	(3,738)
Net Amount	2,047	2,456
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Amount	72,512	72,512
Accumulated Amortization	(41,740)	(37,601)
Net Amount	30,772	34,911
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Amount	45,791	45,791
Accumulated Amortization	(32,111)	(30,178)
Net Amount	13,680	15,613
Trade Name
Finite-Lived Intangible Assets [Line Items]
Gross Amount	7,748	7,748
Accumulated Amortization	(3,083)	(2,739)
Net Amount	$ 4,665	$ 5,009

Intangible Assets and Goodwil_5

Intangible Assets and Goodwill - Total Amortization Expense Associated with Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Total amortization expense associated with identifiable intangible assets	$ 7,863	$ 7,292	$ 15,693	$ 14,531

Intangible Assets and Goodwil_6

Intangible Assets and Goodwill - Impairment and Wite-off of Intangible Assets (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Finite-Lived Intangible Assets [Line Items]
Impairment and write-off of intangible assets	$ 162
Internally Developed Software
Finite-Lived Intangible Assets [Line Items]
Impairment and write-off of intangible assets	$ 162

Leases and Leasing Commitment_2

Leases and Leasing Commitments - Schedule of Supplemental Cash Flow Information Related to Operating and Finance Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows for finance leases	$ 73	$ 140	$ 150	$ 305
Operating cash flows for finance leases	1,486	1,466	2,954	2,914
Operating cash flows for operating leases	$ 577	559	$ 1,146	1,106
Right of use assets obtained in exchange for new lease obligations:
Finance lease liabilities		$ 81		81
Operating lease liabilities				$ 362

Leases and Leasing Commitment_3

Leases and Leasing Commitments - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lease expense
Amortization of right-of-use assets	$ 568	$ 529	$ 1,156	$ 1,060
Interest on lease liabilities	1,656	1,646	3,308	3,287
Operating lease expense	408	432	822	864
Variable lease expense	74	54	148	107
Total lease expense	$ 2,706	$ 2,661	$ 5,434	$ 5,318

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total principal due	$ 76,463	$ 77,275
Current portion of term loan and promissory notes	(6,425)	(6,425)
Unamortized portion of debt issuance costs	(954)	(1,090)
Long term debt	69,084	69,760
Term Loan Facility
Debt Instrument [Line Items]
Total principal due	62,563	63,375
Promissory Note Payable for Land Acquisition
Debt Instrument [Line Items]
Total principal due	$ 13,900	$ 13,900

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) $ in Thousands			3 Months Ended		6 Months Ended
	Dec. 29, 2022 USD ($)	Oct. 01, 2019	Jun. 30, 2024 USD ($) PromissoryNote	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) PromissoryNote	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Deferred financing costs			$ 954		$ 954		$ 1,090
Amortization of deferred financing costs			106	$ 110	212	$ 220
2022 Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 95,000		30,000		30,000
Debt Instrument, Term	5 years
Term loan facility by an aggregate amount			50,000		$ 50,000
Covenant description					The 2022 Credit Agreement also contains three financial covenants, measured on a consolidated basis. First, there must be liquidity (which is defined as availability under the 2022 Revolver, plus unrestricted cash) that is more than the greater of (1) $35,000, and (2) 35% of the Total Commitment Amount (as defined in the 2022 Credit Agreement). Second, as of the end of each quarter, total revenue on a trailing four-quarter basis must be greater than the requirements set forth in the 2022 Credit Agreement. Third, for each period of four consecutive quarters ending on December 31, 2024, and at the end of each fiscal quarter thereafter, Consolidated EBITDA (as defined in the 2022 Credit Agreement) must not be less than $10,000. The Company was in compliance with its financial debt covenants as of June 30, 2024.
Minimum liquidity amount	$ 35,000
Percentage of the total commitment amount	35%
Minimum consolidated EBITDA	$ 10,000
Debt instrument, covenant compliance					The Company was in compliance with its financial debt covenants as of June 30, 2024.
2022 Credit Agreement | Daily Simple SOFR and Term SOFR Loans | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.50%
2022 Credit Agreement | Daily Simple SOFR and Term SOFR Loans | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3%
2022 Credit Agreement | SOFR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1%
Debt instrument, term SOFR plus	one-month
2022 Credit Agreement | SOFR | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.10%
2022 Credit Agreement | SOFR | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.25%
2022 Credit Agreement | Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.50%
2022 Credit Agreement | Base Rate | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.50%
2022 Credit Agreement | Base Rate | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2%
2022 Credit Agreement | Daily Simple SOFR, Term SOFR and Base Rate | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.50%
2022 Revolver
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 30,000
Debt Instrument, Term	5 years
Letter of credit, Amount			0		$ 0
Line of credit facility, outstanding amount			$ 0		$ 0		0
Line of credit facility, unused capacity, commitment fee percentage		0.30%
2022 Term Loans
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 65,000
Debt Instrument, Term	5 years
Effective interest rate			8.23%		8.23%
Line of credit facility, maturity date	Dec. 29, 2027
Amortization rate of the principal amount for the first two years	2.50%
Amortization rate of the principal amount for the last three years	5%
Other Noncurrent Assets and Deposits
Debt Instrument [Line Items]
Deferred financing costs			$ 528		$ 528		$ 604
Promissory Note
Debt Instrument [Line Items]
Number of promissory notes executed | PromissoryNote			2		2
Debt instrument, principal amount			$ 13,900		$ 13,900
Debt instrument, periodic payment, principal					4,800
Debt instrument, periodic payment					$ 4,300
Interest rate			6.75%		6.75%

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details)	6 Months Ended
	Jun. 30, 2024 Vote $ / shares shares	Dec. 31, 2023 $ / shares shares
Stockholders' Equity Note [Abstract]
Number of votes per share | Vote	1
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, par or stated value per share | $ / shares	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock par value | $ / shares	$ 0.001	$ 0.001
Common stock reserved for future issuance	53,213,576

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details)	Jun. 30, 2024 shares
Class of Stock [Line Items]
Common stock reserved for future issuance	53,213,576
Outstanding Stock Options
Class of Stock [Line Items]
Common stock reserved for future issuance	7,556,543
Restricted Stock Units
Class of Stock [Line Items]
Common stock reserved for future issuance	10,986,075
Available for Future Issuance under Stock Award Plans
Class of Stock [Line Items]
Common stock reserved for future issuance	26,722,129
Available for Future Issuance under Employee Stock Purchase Plan
Class of Stock [Line Items]
Common stock reserved for future issuance	7,948,829

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 01, 2024	Jun. 30, 2024	Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Accumulated deficit		$ (1,022,733)	$ (1,022,160)
Unamortized stock-based compensation expense		10,418
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unamortized stock-based compensation expense		$ 104,338
Weighted average amortization period		3 years
Restricted Stock Units | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		1 year
Restricted Stock Units | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average amortization period		2 years 2 months 12 days
Employee Stock Option | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		3 years
Granting period		5 years
Employee Stock Option | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Granting period		10 years
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase in number of shares authorized	2,040,840	7,948,829
2021 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares allocated to be granted or issued		26,722,129
Increase in number of shares authorized	10,204,201
2021 Plan | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		7 years
Expiration period		3 years

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Share-Based Payment Arrangement [Abstract]
Number of Stock Options Outstanding, Beginning balance | shares	8,175,088
Number of Stock Options, Granted | shares	346,935
Number of Stock Options, Exercised | shares	(802,043)
Number of Stock Options, Cancelled | shares	(162,911)
Number of Stock Options, Expired | shares	(526)
Number of Stock Options Outstanding, Ending balance | shares	7,556,543	8,175,088
Number of Stock Options, Vested and exercisable | shares	4,953,507
Weighted Average Exercise Price, Beginning balance | $ / shares	$ 8.64
Weighted Average Exercise Price, Granted | $ / shares	12.34
Weighted Average Exercise Price, Exercised | $ / shares	6.73
Weighted Average Exercise Price, Cancelled | $ / shares	9.2
Weighted Average Exercise Price, Expired | $ / shares	0.26
Weighted Average Exercise Price, Ending balance | $ / shares	9	$ 8.64
Weighted Average Exercise Price, Vested and exercisable | $ / shares	$ 8.71
Weighted Average Remaining Contractual Life	6 years 11 months 23 days	7 years 2 months 19 days
Weighted Average Remaining Contractual Life, Vested and exercisable	6 years 4 months 6 days
Aggregate Intrinsic Value | $	$ 23,816	$ 31,135
Aggregate Intrinsic Value, Vested and exercisable | $	$ 17,061

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSUs Activity (Details) - Restricted Stock Units	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Restricted Stock, Beginning balance | shares	8,919,024
Number of Restricted Stock, Granted | shares	5,309,713
Number of Restricted Stock, Released | shares	(2,766,480)
Number of Restricted Stock, Cancelled | shares	(476,182)
Number of Restricted Stock Outstanding, Ending balance | shares	10,986,075
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 8.98
Weighted Average Grant Date Fair Value, Granted | $ / shares	12.22
Weighted Average Grant Date Fair Value, Released | $ / shares	9.17
Weighted Average Grant Date Fair Value, Cancelled | $ / shares	9.62
Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 10.48

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 12,117	$ 10,869	$ 22,883	$ 19,530
Cost of Revenues
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	1,587	1,311	2,784	2,328
Sales and Marketing
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	1,453	1,400	2,551	2,535
Research and Development
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,924	2,980	6,582	5,199
General and Administrative
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 6,153	$ 5,178	$ 10,966	$ 9,468

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Employee Stock Purchase Plan Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock based compensation expense	$ 12,117	$ 10,869	$ 22,883	$ 19,530
ESPP
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock based compensation expense	$ 202	$ 152	$ 395	$ 422

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - Cybersecurity Incident - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024
Commitments and Contingencies [Line Items]
Insurance Recoveries	$ 2,110		$ 2,110
Cybersecurity expenses	$ 123	$ 3,616	$ 302

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	21.40%	(0.70%)	(74.20%)	(0.60%)