Engagesmart (ESMT) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 30, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	EngageSmart, Inc.
Entity Central Index Key	0001863105
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		162,614,038
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity File Number	001-40835
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-2785225
Entity Address, Address Line One	30 Braintree Hill Office Park
Entity Address, Address Line Two	Suite 101
Entity Address, City or Town	Braintree
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02184
City Area Code	781
Local Phone Number	848-3733
Document Quarterly Report	true
Document Transition Report	false
Security 12b Title	Common stock, $0.001 par value per share
Trading Symbol	ESMT
Security Exchange Name	NYSE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 256,190	$ 254,294
Accounts receivable, net of allowance for credit losses of $176 and $203 as of March 31, 2022 and December 31, 2021, respectively	9,854	10,266
Unbilled receivables	5,098	3,441
Prepaid expenses and other current assets	9,331	7,617
Total current assets	280,473	275,618
Operating lease right-of-use assets	30,257
Property and equipment, net	11,659	10,968
Goodwill	425,677	425,677
Acquired intangible assets, net	84,019	87,920
Other assets	4,163	3,811
Total assets	836,248	803,994
Current liabilities:
Accounts payable	595	2,090
Accrued expenses and other current liabilities	23,198	25,229
Contingent consideration liability		2,800
Deferred revenue	7,637	6,792
Operating lease liabilities	4,464
Total current liabilities	35,894	36,911
Long-term operating lease liabilities	30,979
Deferred income taxes	5,044	4,224
Deferred revenue, net of current portion	233	232
Other long-term liabilities	188	5,528
Total liabilities	72,338	46,895
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, par value $0.001 per share, 10,000,000 shares authorized and no shares issued and outstanding as of March 31, 2022 and December 31, 2021
Common stock, par value $0.001 per share, 650,000,000 shares authorized and 162,434,392 and 161,860,980 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	162	162
Additional paid-in capital	791,795	787,043
Accumulated stockholders' deficit	(28,047)	(30,106)
Total stockholders equity	763,910	757,099
Total liabilities and stockholders equity	$ 836,248	$ 803,994

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Allowance for credit losses	$ 176	$ 203
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	650,000,000	650,000,000
Common stock, shares, issued	162,434,392	161,860,980
Common stock, shares, outstanding	162,434,392	161,860,980

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 67,362	$ 47,424
Cost of revenue	16,039	12,220
Gross profit	51,323	35,204
Operating expenses:
General and administrative	13,287	7,655
Selling and marketing	22,664	15,045
Research and development	10,040	6,993
Contingent consideration expense		202
Amortization of intangible assets	2,362	2,362
Total operating expenses	48,353	32,257
Income from operations	2,970	2,947
Other income (expense), net:
Interest expense, including related party interest (Note 15)	(119)	(2,305)
Other income (expense), net	28	(42)
Total other income (expense), net	(91)	(2,347)
Income before income taxes	2,879	600
Provision for income taxes	820	115
Net income and comprehensive income	$ 2,059	$ 485
Net income per share:
Basic	$ 0.01	$ 0
Diluted	$ 0.01	$ 0
Weighted-average number of common shares outstanding:
Basic	162,143,171	147,698,362
Diluted	169,016,112	149,631,870

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Members' Equity (Unaudited) - 3 months ended Mar. 31, 2021 - USD ($) $ in Thousands	Total	Common StockClass A-1 Common Shares	Common StockClass A-2 Common Shares	Common StockClass A-3 Common Shares	Accumulated Members' Deficit
Balances at Dec. 31, 2020	$ 428,660	$ 293,286	$ 136,559	$ 19,956	$ (21,141)
Balance, shares at Dec. 31, 2020		97,209,436	45,262,340	5,010,888
Exercise of equity-based options	552			$ 552
Exercise of equity-based options, shares				306,762
Equity/Stock-based compensation expense	222			$ 222
Net income	485				485
Balances at Mar. 31, 2021	$ 429,919	$ 293,286	$ 136,559	$ 20,730	$ (20,656)
Balance, shares at Mar. 31, 2021		97,209,436	45,262,340	5,317,650

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2022 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Stockholders' Deficit
Balances at Dec. 31, 2021	$ 757,099	$ 162	$ 787,043	$ (30,106)
Balance, common, shares at Dec. 31, 2021		161,860,980
Issuance of common stock upon exercise of stock options	1,897		1,897
Issuance of common stock upon exercise of stock options, shares		561,581
Vesting of restricted stock units, shares		17,302
Shares withheld for employee taxes	(132)		(132)
Shares withheld for employee taxes, shares		(5,471)
Stock-based compensation expense	2,987		2,987
Net income	2,059			2,059
Balances at Mar. 31, 2022	$ 763,910	$ 162	$ 791,795	$ (28,047)
Balance, common, shares at Mar. 31, 2022		162,434,392

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 2,059	$ 485
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	4,641	4,349
Stock/equity-based compensation expense	2,987	222
Contingent consideration expense		202
Non-cash operating lease expense	1,135
Deferred income taxes	820	115
Non-cash interest expense	58	1,059
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(1,714)	(1,277)
Accounts receivable, net	412	531
Unbilled receivables	(1,657)	(984)
Other assets	(410)	(104)
Accounts payable	(1,415)	(259)
Accrued expenses and other current liabilities	(3,385)	(15)
Deferred revenue	846	642
Operating lease liabilities	(1,662)
Other long-term liabilities	26	12
Net cash provided by operating activities	2,741	4,978
Cash flows from investing activities:
Purchases of property and equipment, including costs capitalized for development of internal-use software	(1,509)	(1,313)
Net cash used in investing activities	(1,509)	(1,313)
Cash flows from financing activities:
Payment of debt issuance costs	(23)
Payments of related party notes		(5,900)
Payments of contingent consideration	(1,066)
Proceeds from exercise of stock/equity-based options	1,897	552
Payments of taxes related to net share settlement of equity awards	(132)
Payment of initial public offering costs	(12)
Net cash provided by (used in) financing activities	664	(5,348)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,896	(1,683)
Cash, cash equivalents and restricted cash at beginning of period	254,594	29,650
Cash, cash equivalents and restricted cash at end of period	256,490	27,967
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	256,190	27,667
Restricted cash within other assets	$ 300	$ 300
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent	Other Assets, Noncurrent
Total cash, cash equivalents, and restricted cash	$ 256,490	$ 27,967
Supplemental cash flow information:
Cash paid for interest	57	1,433
Cash paid for taxes	1
Supplemental disclosure of non-cash investing and financing activities:
Additions to property and equipment included in accounts payable and accrued expenses	100	30
Deferred initial public offering costs included in accrued expenses	$ 274	$ 140

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	1. Nature of Business and Basis of Presentation EngageSmart, Inc. and its subsidiaries (together referred to herein as the “Company” or “EngageSmart”) is a leading provider of vertically tailored customer engagement software and integrated payments solutions. EngageSmart offers single instance, multi-tenant, true Software-as-a-Service (“SaaS”) vertical solutions, including SimplePractice, InvoiceCloud, HealthPay24 and DonorDrive, that are designed to simplify our customers' engagement with their clients by driving digital adoption and self-service. The Company serves customers across several core verticals: Health & Wellness, Government, Utilities, Financial Services, Healthcare and Giving. EngageSmart's solutions are purpose-built for each of our verticals and they simplify and automate mission-critical workflows such as scheduling, client onboarding, client communication, paperless billing, and electronic payment processing. EngageSmart is headquartered in Braintree, Massachusetts with additional locations throughout the United States. Initial Public Offering On September 27, 2021, the Company completed its initial public offering ("IPO"), in which the Company issued and sold 13,620,054 shares of common stock at a public offering price of $ 26.00 per share, including 620,054 shares issued upon the exercise of the underwriters' option to purchase additional shares. The Company raised net proceeds of $ 326.4 million, after deducting the underwriting discount of $ 22.1 million and offering expenses of $ 5.6 million. Additionally, certain existing shareholders sold an aggregate of 3,112,446 shares in the IPO at the same price, resulting in net proceeds to the selling stockholders of $ 75.9 million. On September 27, 2021, the Company used a portion of the net proceeds from its IPO to repay in full the outstanding borrowings of $ 114.2 million under its Credit Facilities, as defined below under Note 9 - Debt . Prior to the IPO, deferred offering costs, which consist of legal, accounting, consulting and other third-party fees that were directly associated with the IPO, were capitalized within other assets on the Company's consolidated balance sheets. Upon the completion of the IPO, these costs were offset against the proceeds from the IPO and recorded as a reduction to additional paid-in capital. Following the Company's IPO, General Atlantic (IC), L.P. ("General Atlantic") controls more than 50 % of the combined voting power of the Company's outstanding common stock, and the Company is considered a "controlled company" within the meaning of the corporate governance standards of the New York Stock Exchange ("NYSE"). Corporate Conversion Immediately prior to effectiveness of the Company's IPO registration statement on Form S-1, EngageSmart, LLC, a Delaware limited liability company, converted into a Delaware corporation pursuant to a statutory conversion, which changed the Company's name to EngageSmart, Inc. ("Corporate Conversion"). Refer to Note 10 - Stockholders' Equity for further discussion. Stock Split On September 10, 2021, the Company effected a 1-for- 3 forward stock split of its common shares. In connection with the forward stock split, each issued and outstanding common share, automatically and without action on the part of the holders, became three common shares. All share, per share and related information presented in the consolidated financial statements and accompanying notes have been retroactively adjusted, where applicable, to reflect the impact of the forward stock split. Basis of Presentation EngageSmart, Inc., formerly EngageSmart, LLC prior to the Corporate Conversion, was formed on December 7, 2018 as Hancock Parent, LLC. On December 11, 2018, EngageSmart, LLC entered a series of arrangements to indirectly acquire, through its wholly owned subsidiary Hancock Midco, LLC, 100 % of the equity interest in Invoice Cloud, Inc. (the “InvoiceCloud Acquisition”). On February 11, 2019, Hancock Merger Sub, Inc., a transitory merger company of Hancock Midco, LLC, merged into InvoiceCloud, with InvoiceCloud continuing as the surviving corporation and a wholly owned subsidiary of Hancock Midco, LLC. For all the periods reported in these condensed consolidated financial statements, the Company has not and does not have any material revenue-generating operations on a standalone basis, and all the material revenue-generating operations of the Company are carried out by its subsidiaries. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions between the Company and its subsidiaries have been eliminated in consolidation. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2021, included in the Company's 2021 Form 10-K. In the opinion of management, the interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position for the periods presented. The results for the interim periods presented are not necessarily indicative of future results. Impact of the COVID-19 Pandemic The Company is subject to risks and uncertainties relating to the ongoing outbreak of the novel strain of coronavirus (“COVID-19”), which the World Health Organization declared a pandemic in March 2020. The COVID-19 pandemic has continued to spread throughout the United States and the world and has resulted in authorities implementing numerous measures to contain the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, and business limitations and shutdowns. Work-from-home and other measures have introduced additional operational risks, including cybersecurity risks, and may adversely affect the way the Company and its customers and insurance providers conduct business. In response to the COVID-19 pandemic, the Company limited corporate travel and reduced certain professional services. In addition, the Company implemented remote working capabilities and measures that focused on the safety of its employees. The Company continues to monitor the rapidly evolving conditions and circumstances as well as guidance from international and domestic authorities, including public health authorities. The Company does not currently foresee the need to take additional actions, however it continues to evaluate the ongoing impact of COVID-19 as facts and circumstances change. For the three months ended March 31, 2022, the COVID-19 pandemic has not had a material effect on the Company’s revenues and financial results, although the magnitude and duration of the ultimate effects as a result of the COVID-19 pandemic are not possible to predict at this time.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2 - Summary of Significant Accounting Policies within the notes to consolidated financial statements for the year ended December 31, 2021, included in the Company's 2021 Form 10-K. There have been no significant changes to these policies during the three months ended March 31, 2022, except as noted below. Risk of Concentrations of Credit and Significant Customers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. At times, the Company may maintain cash balances in excess of federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those that accounted for 10% or more of the Company’s total revenue or accounts receivable during any period presented herein. During the three months ended March 31, 2022 and 2021, no customer accounted for 10 % or more of revenue. As of March 31, 2022 and December 31, 2021, no customer accounted for 10 % or more of accounts receivable. Recently Adopted Accounting Prono uncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to recognize assets and liabilities on their balance sheet for the rights and obligations created by leases and to continue to recognize related expenses on their income statements over the lease term. It also requires disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this standard effective January 1, 2022 using the modified retrospective transition method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of transition practical expedients for existing contracts. Adoption of the new standard resulted in the recording of operating lease right-of-use assets of $ 31.4 million and operating lease liabilities of $ 37.1 million, as of January 1, 2022 . The difference between the operating lease right-of-use assets and operating lease liabilities relates to deferred rent balances, lease incentives, and liabilities recognized under Accounting Standards Codification ("ASC") 420, Exit or Disposal Cost Obligations , the net impact of which reduced the right-of-use assets. The adoption of the standard did not impact the Company's consolidated net earnings and had no impact on cash flows. Refer to Note 5 - Leases for additional information related to the Company’s lease obligations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss model with an expected loss model and requires the use of forward-looking information to calculate credit loss estimates. Effective January 1, 2022 , the Company adopted ASU 2016-13 on a modified retrospective basis. The adoption of ASU 2016-13 did no t have a material impact of the Company's condensed consolidated balance sheets, statements of operations and comprehensive income, or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles as well as clarifying and amending existing guidance to improve consistent application. Effective January 1, 2022 , the Company adopted ASU 2019-12 on a modified retrospective basis. The adoption of ASU 2019-12 did no t have a material impact of the Company's condensed consolidated balance sheets, statements of operations and comprehensive income, or cash flows. Recently Issued Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which requires the recognition and measurement of contract assets and liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and, if adopted early, requires the retrospective method of transition applied to transactions occurring on or after the beginning of the fiscal year of adoption. The Company is currently evaluating the timing of adoption of ASU 2021-08. The Company does not believe the adoption of ASU 2021-08 will have a material impact on its consolidated financial statements.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue	3. Revenue Revenue Disaggregated The Company disaggregates revenue from contracts with customers by reportable segment and revenue type, as the Company believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors and is consistent with the manner in which the Company operates the business. The Company generates a significant majority of its revenue in the Enterprise Solutions segment from transaction and usage-based revenue and a significant majority of its revenue in the SMB Solutions segment from subscription revenue. The following table depicts disaggregated revenue by segment and revenue type (in thousands): Three Months Ended March 31, 2022 2021 Enterprise Solutions Transaction and usage-based $ 28,319 $ 21,611 Subscription 2,081 1,827 Other 460 641 Total Enterprise Solutions revenue 30,860 24,079 SMB Solutions Transaction and usage-based 11,027 7,140 Subscription 25,052 16,010 Other 423 195 Total SMB Solutions revenue 36,502 23,345 Total revenue $ 67,362 $ 47,424 Contract Assets and Liabilities Contract assets are rights to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditional on something other than the passage of time. Contract assets are transferred to accounts receivable once the rights become unconditional. The Company did no t have contract assets as of March 31, 2022 or December 31, 2021. Contract liabilities (deferred revenue) primarily consist of billings and payments received in advance of revenue recognition. The Company primarily bills and collects payments from customers for its services in advance on a monthly, quarterly or annual basis. Contract liabilities are recognized as revenue when services are performed and all other revenue recognition criteria have been met. Amounts expected to be recognized as revenue within 12 months of the balance sheet date are classified as current deferred revenue and amounts expected to be recognized as revenue beyond 12 months of the balance sheet date are classified as non-current deferred revenue. The Company had current deferred revenue o f $ 7.6 million and $ 6.8 million as of March 31, 2022 and December 31, 2021, respectively. Non- current deferred revenue wa s $ 0.2 million as of March 31, 2022 and December 31, 2021. During the three months ended March 31, 2022, the Company recognized revenue of $ 5.0 million from the deferred revenue balance as of December 31, 2021. Durin g the three months ended March 31, 2021, the Company recognized re venue of $ 3.6 million from the deferred revenue balance as of December 31, 2020. Remaining Performance Obligations ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. As permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. For contracts greater than one year in length, the Company's most significant performance obligations consist of variable consideration. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Income Per Share	4. Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the sum of the weighted average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method. For the periods in which the Company incurs a net loss, the effect of the Company’s outstanding common stock equivalents is not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The following table sets forth the computation of basic and diluted net income per share: Three Months Ended March 31, 2022 2021 (in thousands, except share and per share amounts) Numerator: Net income $ 2,059 $ 485 Denominator: Weighted average common shares outstanding, basic 162,143,171 147,698,362 Effect of potential dilutive common shares 6,872,941 1,933,508 Weighted average common shares outstanding, diluted 169,016,112 149,631,870 Net income per share, basic $ 0.01 $ 0.00 Net income per share, diluted $ 0.01 $ 0.00 The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net income per share for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended March 31, 2022 2021 Options to purchase common shares 580,711 6,456,900 Unvested restricted stock units 477,344 — Total 1,058,055 6,456,900

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	5. Leases On January 1, 2022 , the Company adopted ASU 2016-02, Leases, using the modified retrospective transition method. The Company has elected to adopt the package of practical expedients which apply to leases that commenced before the adoption date. By electing the package of practical expedients, the Company did not reassess: whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases, and the initial direct costs for any existing leases. The Company has also elected to combine lease and non-lease components when calculating minimum lease payments on new leases for all asset classes. The Company has elected an accounting policy to forgo the recognition of lease assets or liabilities for short-term leases. Short-term leases are defined, in accordance with the standard, as those with terms of one year or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. The Company determines if an arrangement is or contains a lease at contract inception. The Company accounts for a contract as a lease when it has the right to direct the use of the asset for a period of time while obtaining substantially all of the asset’s economic benefits. The Company determines the initial classification and measurement of right-of-use ("ROU") assets and lease liabilities at the lease commencement date and thereafter at the modification date, if modified. ROU assets represent the Company's right to control the underlying assets under lease, and the lease liability is the Company's obligation to make the lease payments related to the underlying assets under lease, over the contractual term. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of future minimum fixed lease payments to be made over the lease term. The Company uses the non-cancellable lease term unless it is reasonably certain that a renewal or termination option will be exercised. When available, the Company will use the rate implicit in the lease to discount lease payments to present value. As most leases do not provide an implicit rate, the Company will estimate the incremental borrowing rate to discount the lease payments. The Company estimates the incremental borrowing rate based on the rates of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis, over a similar term, and in a similar economic environment. The ROU asset also includes any lease prepayments and initial direct costs, offset by lease incentives. Certain lease agreements contain variable lease payments which are not included in the measurement of the lease liability. Variable lease payments relate to taxes, insurance, utilities, and common area maintenance ("CAM"). These variable lease payments are recognized in the condensed consolidated statements of operations and comprehensive income in the period in which the obligation for those payments is incurred. The Company has operating leases for office space to support business operations. The Company's office leases expire at varying dates from 2022 through 2030 . The Company's leases do not contain any material residual value guarantees or restrictive covenants. Operating leases are recognized on the condensed consolidated balance sheets as operating lease right-of-use assets, operating lease liabilities and long-term operating lease liabilities. Operating lease expense is recognized on a straight-line basis over the lease term within the Company’s condensed consolidated statements of operations and comprehensive income. Lease Costs and Other Information The following table summarizes the components of operating lease expense (in thousands): Three Months Ended March 31, 2022 Operating lease cost $ 1,181 Variable lease cost 91 Total $ 1,272 The weighted average remaining lease term and discount rate were as follows: Three Months Ended March 31, 2022 Weighted-average remaining lease term 7.4 years Weighted-average discount rate 2.26 % Supplemental Cash Flow Information The following table presents supplemental information relating to cash flows arising from lease transactions. Cash payments made for variable lease cost and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below (in thousands): Three Months Ended March 31, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,404 Right of use assets obtained in exchange for new operating lease liabilities $ 31,392 Maturity of Lease Liabilities The following table presents the future minimum lease payments under the Company's operating leases liabilities as of March 31, 2022 (in thousands): Remainder of 2022 $ 3,801 2023 5,723 2024 5,750 2025 4,489 2026 4,079 Thereafter 14,810 Total lease payments $ 38,652 Less: imputed interest ( 3,209 ) Lease liabilities $ 35,443 The Company has subleased certain office space for which incoming sublease amounts will offset the future lease payments in the table above. Under the executed sublease agreement, the Company expects to receive future sublease payments of $ 0.4 million over the remainder of 2022 and $ 1.5 million thereafter. ASC 840 Disclosures Under the previous lease accounting standard, ASC 840, Leases , (“ASC 840”), as previously disclosed in the 2021 Form 10-K for the year ended December 31, 2021, the total future minimum payments under non-cancellable operating leases as of December 31, 2021 was as follows (in thousands): 2022 $ 5,674 2023 5,716 2024 5,743 2025 4,481 2026 4,071 Thereafter 14,766 Total $ 40,451 Rent expense was $ 1.1 million for the three months ended March 31, 2021. As of December 31, 2021, the Company had total deferred rent of $ 4.5 million, which was included in accrued expenses and other current liabilities and other long-term liabilities on the Company’s condensed consolidated balance sheets.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	6. Fair Value Measurements The following tables present the Company’s fair value hierarchy for its assets and liabilities that were measured at fair value on a recurring basis (in thousands): March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 202,022 $ — $ — $ 202,022 Liabilities: Contingent consideration liability $ — $ — $ — $ — December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 205,010 $ — $ — $ 205,010 Liabilities: Contingent consideration liability $ — $ — $ 2,800 $ 2,800 Money market funds held as of March 31, 2022 and December 31, 2021 were valued by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. The carrying values of the Company’s accounts receivable, unbilled receivables, accounts payable, and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. There were no transfers into or out of Level 3 during the periods presented. The Company’s recurring fair value measurements using Level 3 inputs relate to the Company’s contingent consideration liability, as the significant inputs to the valuation are not observable in the market. The Company determines the fair value of the contingent consideration liability using a Monte Carlo simulation model, and the significant assumptions and estimates utilized in the model include forecasted net recurring revenue, net recurring revenue volatility, and discount rate. Changes in the fair value of the Company’s contingent consideration liability were as follows (in thousands): Balance as of December 31, 2021 $ 2,800 Payment of contingent consideration ( 2,800 ) Change in fair value — Balance as of March 31, 2022 $ —

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangible Assets	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Acquired Intangible Assets	7. Goodwill and Acquired Intangible Assets The carrying amount of goodwill w as $ 425.7 million as of March 31, 2022 and December 31, 2021, rel ated to goodwill from the Company’s acquisitions. Changes in the carrying amount of goodwill by reportable segment through March 31, 2022 are as follows (in thousands): Enterprise Solutions SMB Solutions Total Balance as of December 31, 2021 $ 218,658 $ 207,019 $ 425,677 Goodwill acquired — — — Balance as of March 31, 2022 $ 218,658 $ 207,019 $ 425,677 Acquired intangible assets of the Company consisted of the following (in thousands): March 31, 2022 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 82,841 $ ( 25,131 ) $ 57,710 Developed technology 7.0 42,913 ( 18,849 ) 24,064 Tradenames 5.0 5,824 ( 3,579 ) 2,245 Total $ 131,578 $ ( 47,559 ) $ 84,019 December 31, 2021 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 82,841 $ ( 23,059 ) $ 59,782 Developed technology 7.0 42,913 ( 17,311 ) 25,602 Tradenames 5.0 5,824 ( 3,288 ) 2,536 Total $ 131,578 $ ( 43,658 ) $ 87,920 The Company recorde d amortization expense of $ 3.9 million for both the three months ended March 31, 2022 and 2021. Amortizat ion of developed technology is recorded within cost of revenue, while amortization of customer relationships and tradenames is recorded within amortization of intangible assets within the Company’s condensed consolidated statements of operations and comprehensive income. Future estimated amortization expense of the Company’s intangible assets as of March 31, 2022 is expected to be as follows (in thousands): Remainder of 2022 $ 11,700 2023 15,601 2024 14,640 2025 14,383 2026 9,335 Thereafter 18,360 Total $ 84,019

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	8. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, 2022 December 31, 2021 Accrued employee compensation and benefits $ 7,850 $ 12,437 Accrued consulting and professional fees 2,694 2,619 Accrued processing fees 2,152 1,626 Accrued channel partner fees 2,368 2,081 Accrued license fees 1,724 1,154 Accrued sales tax 674 615 Accrued restructuring — 387 Other 5,736 4,310 Total $ 23,198 $ 25,229

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	9. Debt As of March 31, 2022 and December 31, 2021, the Company had no long-term debt outstanding. 2021 Revolving Credit Facility On September 27, 2021, the Company entered into a revolving credit agreement (“2021 Revolving Credit Facility”) with JPMorgan Chase Bank, N.A. as administrative agent and certain other lenders. The 2021 Revolving Credit Facility allows the Company to borrow up to $ 75.0 million, $ 7.5 million of which may be comprised of a letter of credit facility. The 2021 Revolving Credit Facility will mature on September 27, 2026 and proceeds of the borrowings under the 2021 Revolving Credit Facility will be used for general corporate purposes. In conjunction with the 2021 Revolving Credit Facility, the Company incurred debt issuance costs in the amount of $ 1.2 million, which were recorded within other assets on the condensed consolidated balance sheets and are being amortized into interest expense over the life of the 2021 Revolving Credit Facility. The 2021 Revolving Credit Facility requires the Company to pay a commitment fee in respect to unused revolving credit facility commitments of 0.25 % per annum. The commitment fee is recorded as a component of interest expense on the Company's condensed consolidated statements of operations and comprehensive income. As of March 31, 2022, the Company has not yet drawn upon the 2021 Revolving Credit Facility, although $ 2.1 million has been utilized against the 2021 Revolving Credit Facility in the form of a line of credit, reducing the Company's borrowing capacity to $ 72.9 million. The 2021 Revolving Credit Facility contains certain financial maintenance covenants, which require the Company to not exceed certain specified total net leverage ratios at the end of each fiscal quarter. Credit Facilities On February 11, 2019, in connection with the InvoiceCloud Acquisition, the Company entered into a credit agreement (“Credit Agreement”) with Ares Capital Corporation as administrative agent and collateral agent, and certain other lenders, which provided for a $ 75.0 million aggregate principal amount senior secured term loan facility (“Initial Term Loan Facility”), a $ 35.0 million senior secured delayed draw term loan facility (“Delayed Draw Term Loan Facility”), and a $ 7.5 million senior secured revolving credit facility (“2019 Revolving Credit Facility"). The Company collectively refers to the Initial Term Loan Facility, the Delayed Draw Term Loan Facility, and the 2019 Revolving Credit Facility as the Credit Facilities. On September 27, 2021, the Company used a portion of the net proceeds from its IPO to repay in full the outstanding borrowings of $ 114.2 million under the Credit Facilities. In connection with this repayment, the Company incurred a loss on debt extinguishment of $ 1.2 million. The loss on debt extinguishment primarily consists of a write-off of unamortized debt issuance costs associated with the Credit Facilities. In September 2019, a letter of credit was issued related to one of the Company’s leases in the amount of $ 2.1 million, which reduced the amount of borrowings available under the 2019 Revolving Credit Facility. As of September 27, 2021, the Credit Agreement, which included the 2019 Revolving Credit Facility, was terminated and the outstanding letter of credit was cash collateralized. In December 2021, the cash collateral was returned along with the cancellation of the prior letter of credit, and a new letter of credit for $ 2.1 million was issued under the 2021 Revolving Credit Facility.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Stockholders' Equity	10. Stockholders' Equity Initial Public Offering On September 27, 2021, the Company completed its IPO, in which the Company issued and sold 13,620,054 shares of common stock at a public offering price of $ 26.00 per share, including 620,054 shares issued upon the exercise of the underwriters' option to purchase additional shares. The Company raised net proceeds of $ 326.4 million after deducting the underwriting discounts of $ 22.1 million and offering expenses of $ 5.6 million. Corporate Conversion Immediately prior to effectiveness of the Company’s IPO registration statement on Form S-1, EngageSmart, LLC, a Delaware limited liability company, converted into a Delaware corporation pursuant to a statutory conversion, which changed the Company’s name to EngageSmart, Inc. As part of the Corporate Conversion, each Class A-1 share, Class A-2 share, and Class A-3 share, in each case, of EngageSmart, LLC was converted on a 1:1 basis into Class A-1 common stock, Class A-2 common stock and Class A-3 common stock, in each case, of the Company, respectively, with the same rights and obligations that existed under the limited liability company agreement of EngageSmart, LLC (the “LLC Agreement”). Under the LLC Agreement, Class A-2 holders, were entitled to certain cash distributions that General Atlantic would have otherwise been entitled to receive if General Atlantic had received a pre-established dollar threshold in connection with and/or following certain exit events (“CVR Obligation”). Following the Corporate Conversion, each share of (i) Class A-1 common stock was reclassified into 0.9398 shares of common stock, (ii) Class A-2 common stock was reclassified into 1.1102 shares of common stock, and (iii) Class A-3 common stock was reclassified into 1 share of common stock (collectively, the “Common Stock Reclassifications”). The conversion ratio for each Common Stock Reclassification reflected the difference in value of the shares as a result of the CVR Obligation. Pursuant to the Company’s amended and restated certificate of incorporation, no fractional shares resulting from the conversion of Class A-2 common stock to common stock were to be issued and, in lieu of the fractional shares, each holder of Class A-2 common stock who would otherwise be entitled to fractional shares were entitled to an amount in cash (the “Fractional Share Payout”). Following the Common Stock Reclassifications, General Atlantic, the sole former holder of Class A-1 common stock (which were formerly Class A-1 shares of EngageSmart, LLC) subscribed for 1,662,917 additional shares of common stock in the Company, with the value of each share based on the public offering price of the shares of common stock sold by the Company in the IPO. As consideration for the additional shares of common stock, General Atlantic contributed capital to the Company in an amount equal to $ 43.2 million in order for the Company to satisfy its obligation in full for the Fractional Share Payout. The Fractional Share Payout settled the former CVR Obligation of the Company under the LLC Agreement. Additionally, certain of the Company's executive officers and other employees, among others, currently hold CVR Unit Awards ("CVR Units"), under the CVR Bonus Award Plan (the "CVR Plan"). The CVR Plan was amended to reflect the Corporate Conversion and the CVR Units will otherwise remain subject to the same terms and conditions applicable to the CVR Units immediately prior to the Company’s IPO. Following the Common Stock Reclassifications, General Atlantic subscribed for 288,344 additional shares of common stock in the Company, with the value of each share based on the public offering price of the shares of common stock sold by the Company in the IPO. As consideration for the additional shares of common stock, General Atlantic entered into a promissory note with the Company which requires General Atlantic to make a capital contribution to the Company equal to the amount of any payments made by the Company to holders of CVR Units pursuant to the CVR Plan, which such payments would be triggered by the same exit events specified under the LLC Agreement. Stock Split On September 10, 2021, the Company effected a 1-for- 3 forward stock split of its common shares. In connection with the forward stock split, each issued and outstanding common share, automatically became three common shares. Preferred Stock In connection with the Company's IPO in September 2021, the Company's amended and restated certificate of incorporation and amended and restated bylaws became effective, which authorized the issuance of 10,000,000 shares of preferred stock with a par value of $ 0.001 with rights and preferences, including voting rights, designated from time to time by the Board of Directors. As of March 31, 2022, no shares of preferred stock were issued or outstanding. Common Stock In connection with the Company's IPO in September 2021, the Company's amended and restated certificate of incorporation and amended and restated bylaws became effective, with authorized the issuance of 650,000,000 shares of common stock with a par value of $ 0.001 . As of March 31, 2022, there were 162,434,392 shares of common stock issued and outstanding.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Stock-based Compensation	11. Stock-based Compensation 2021 Incentive Award Plan In September 2021, the Company’s Board of Directors adopted, and its stockholders approved, the 2021 Incentive Award Plan (“2021 Plan”), which became effective in connection with the IPO. The 2021 Plan provides for granting stock options, including incentive stock options ("ISOs") and nonqualified stock options ("NSOs"), restricted stock, dividend equivalents, restricted stock units ("RSUs"), other stock-based awards, and cash awards to eligible employees, consultants and directors. A total of 14,798,186 shares of the Company’s common stock have been reserved for issuance under the 2021 Plan. The number of shares initially available for issuance will be increased annually on January 1 of each calendar year beginning in 2022 and ending in 2031 by an amount equal to the lesser of (i) 5 % of the shares of the Company's common stock outstanding on the final day of the immediately preceding calendar year or (ii) a smaller number of shares as determined by the Company's Board of Directors. As of March 31, 2022, there were 13,861,534 remaining shares available for the Company to grant under the 2021 Plan. The Company’s Amended and Restated 2015 Stock Option Plan ("2015 Plan”) provided for the granting of ISOs and NSOs to the Company's employees, consultants, and nonemployee directors. In conjunction with the effectiveness of the 2021 Plan, the Company’s Board of Directors voted that no further awards would be granted under the 2015 Plan but any awards under the 2015 Plan that were outstanding as of the date of the IPO shall remain outstanding and continue to be subject to the terms and conditions of the 2015 Plan. Stock-based awards granted to employees generally vest over a four-year period, and, in the case of stock options, expire ten years from the date of grant. 2021 Employee Stock Purchase Plan In September 2021, the Company’s Board of Directors adopted, and its stockholders approved, the 2021 Employee Stock Purchase Plan (“2021 ESPP”), which became effective in connection with the IPO. The 2021 ESPP authorizes the issuance of shares of common stock pursuant to purchase rights granted to employees. A total of 2,219,728 shares of the Company’s common stock have been reserved for future issuance under the 2021 ESPP. The number of shares available for issuance under the 2021 ESPP will be annually increased on January 1 of each calendar year beginning in 2022 and ending in 2031, by an amount equal to the lesser of: (i) 1 % of the aggregate number of shares of the Company's common stock outstanding on the final day of the immediately preceding calendar year or (ii) such smaller number of shares as is determined by the Company's Board of Directors. The 2021 ESPP permits eligible participants to purchase common stock through payroll deductions of up to 15 % of their eligible compensation during the offering period. The purchase price of the shares will be 85 % of the lesser of the fair market value of our common stock on the first day of the offering period or the fair market value on the last day of the offering period. The Company's first offering period commenced on February 1, 2022 and ends May 31, 2022. Following the completion of the first offering period, the 2021 ESPP will typically be administered through consecutive six-month offering periods. As of March 31, 2022, the Company has not issued any shares under the 2021 ESPP. Stock-based Compensation Expense Stock-based compensation expense is reflected in the condensed consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended March 31, 2022 2021 Cost of revenue $ 108 $ 4 General and administrative 2,319 184 Selling and marketing 403 23 Research and development 157 11 Total $ 2,987 $ 222

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The Company's effective income tax rates were 28.5 % and 19.2 % for the three months ended March 31, 2022 and 2021, respectively. The effective tax rate for the three months ended March 31, 2022 was higher than the statutory rate of 21.0 % primarily due to stock-based compensation adjustments and the impact of state taxes, partially offset by excess benefits from stock-based compensation. The effective tax rate for the three months ended March 31, 2021 was lower than the statutory rate of 21.0 % due to the impact of state income taxes, as well as permanent adjustments and excess benefits from stock-based compensation.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Non-Cancellable Commitments As of March 31, 2022, the Company had non-cancellable commitments to vendors primarily consisting of subscriptions to third party software products. Obligations under contracts that are cancellable or with a remaining term of 12 months or less are not included. As of March 31, 2022, future minimum payments under other non-cancellable agreements were $ 3.8 million, of which $ 1.9 million, $ 1.5 million and $ 0.4 million are expected to be paid by December 31, 2022, 2023 and 2024, respectively. Contingent Value Payments In connection with the InvoiceCloud Acquisition, the CVR Plan was established for the benefit of option holders as of February 11, 2019 in the event that holders of the Company’s Class A-1 common shares receive cash distributions in connection with certain exit events specified under the LLC Agreement of at least $ 889.1 million (the “Performance Threshold”). Subject to the achievement of the Performance Threshold, CVR Units entitle the holder, subject generally to the holder’s continued employment through the date of payment, to a pro-rata portion of a bonus pool (based on a participant’s share of CVR Units held). The maximum amount of this bonus pool was capped at $ 9.5 million, of which, $ 7.3 million remains outstanding as of March 31, 2022. No compensation expense has been recognized in relation to the CVR Plan as the Company has determined that certain exit events specified under the LLC Agreement are not probable as of March 31, 2022. In connection with the Company’s IPO, the CVR Plan was amended to reflect the Corporate Conversion (refer to Note 10 - Stockholders' Equity ) and the CVR Units will remain subject to the same terms and conditions applicable immediately prior to the Company’s IPO. Following the Common Stock Reclassifications, General Atlantic subscribed and received 288,344 additional shares of common stock in the Company, with the value of each share based on the public offering price of the shares of common stock sold by the Company in the IPO. As consideration for the additional shares of common stock, General Atlantic entered into a promissory note with the Company, which requires General Atlantic to make a capital contribution to the Company equal to the amount of any future payments to be made by the Company to holders of CVR Units pursuant to the CVR Plan, which such payments would be triggered by the same exit events specified under the LLC Agreement. In the event the CVR Units are forfeited or the Performance Threshold is not met, General Atlantic will not be required to make any payments under the promissory note and will keep the shares issued. Indemnification Agreements In the normal course of business, the Company may provide indemnification of varying scope and terms to third parties and may enter into commitments and guarantees (“Agreements”) under which it may be required to make payments. The duration of these Agreements varies, and in certain cases, may be indefinite with no limit to the Company’s maximum potential payment exposure. In addition, the Company has obligations with certain members of its board of directors and certain executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of March 31, 2022 and December 31, 2021. Legal Proceedings The Company is from time to time subject to various other legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. The Company routinely assesses its current litigation and/or threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss if reasonably possible to estimate, in situations where the Company assesses the likelihood of loss as probable. While the outcome of these claims cannot be predicted with certainty, the Company believes that these pending or threatened legal proceeding or claims could not have a material impact on the Company’s condensed consolidated financial statements.

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring	14. Restructuring In 2020, the Company relocated certain of its operations and abandoned office space in Los Angeles, California resulting in a restructuring charge of $ 2.4 million. In 2021, the Company revised sublease assumptions and executed a sublease agreement for this office space and recorded a reversal in restructuring expense of $ 0.2 million. As of December 31, 2021, the remaining restructuring liability was $ 1.2 million, of which $ 0.4 million was included within accrued expenses and other current liabilities and $ 0.8 million was included within other long-term liabilities within the Company’s condensed consolidated balance sheets. Upon adoption of ASU 2016-12 on January 1, 2022, the outstanding restructuring liability was reclassified as a reduction to the Company's operating lease right-of use asset. As of March 31, 2022, the Company had no restructuring liability balance outstanding.

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Parties	15. Related Parties In 2019, the Company assumed unsecured notes payable in the aggregate amount of $ 3.0 million (the “GC Notes”) and $ 2.9 million (“IVR Note”), respectively, with two individuals that are former shareholders, one of which is a former employee and the other is a current employee of Global Cloud, Ltd. (“GC”) and individuals that are former shareholders and former employees of IVR Technologies Group, LLC (“IVR”), respectively. The GC Notes and IVR Note bore interest at a rate of 7 % and 8 % per annum, respectively, and required interest-only payments with the outstanding principal amount and any accrued but unpaid interest due on the maturity date of March 12, 2021 and January 16, 2021 , respectively. During the three months ended March 31, 2021, the Company repaid in full the outstanding principal balance of the GC Notes and IVR Note, which totaled $ 5.9 million. These amounts are disclosed within cash flows from financing activities within the condensed consolidated statements of cash flows. Within its condensed consolidated statements of operations and comprehensive income, the Company recognized interest expense related to the GC Notes and IVR Note of less than $ 0.1 million during the three months ended March 31, 2021. The Company made cash interest payments related to the GC Notes and IVR Note of $ 0.2 million during the three months ended March 31, 2021.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Segment and Geographic Information	16. Segment and Geographic Information Segment Information The Company has determined that its chief executive officer is its chief operating decision maker (“CODM”) and the Company is organized into two reportable segments: Enterprise Solutions and SMB Solutions. The reportable segments were determined based on how the CODM reviews business performance and makes decisions about resources to be allocated. The Enterprise Solutions segment is primarily engaged in providing SaaS solutions that simplify customer-client engagement primarily through electronic billing and digital payments. Enterprise solutions are built to address the unique needs of specific verticals: Government, Utilities, Financial Services, Healthcare and Giving. For the Enterprise Solutions segment, the Company integrates directly with its customers’ core software systems and utilizes a partner-assisted direct sales model for purposes of its go-to-market strategy. The Company generates a significant majority of its revenue in this segment from transaction and usage-based revenue. For the three months ended March 31, 2022, this segment generated 46 % of total revenue. The SMB Solutions segment is primarily engaged in providing end-to-end practice management solutions geared toward the Health & Wellness industry. For the Company's SMB Solutions segment, the Company primarily relies on a free trial to paid customer sales model. The Company generates interest for its offerings in the Company's SMB Solutions segment through a combination of search engine optimization, word-of-mouth, paid customer referrals, and search engine marketing. The Company generates a majority of its revenue in this segment from subscription revenue. For the three months ended March 31, 2022, this segment generated 54 % of total revenue. The CODM evaluates segment operating performance using revenue and Adjusted EBITDA, as defined below, from reportable segments to make resource allocation decisions and to evaluate segment performance. Adjusted EBITDA assists management in comparing the Company’s performance on a consistent basis for purposes of business decision-making. The Company defines Adjusted EBITDA as net income excluding interest expense, net; provision for income taxes; depreciation; and amortization of intangible assets, as further adjusted for transaction-related expenses, fair value adjustment of acquired deferred revenue, and stock/equity-based compensation. Adjusted EBITDA from reportable segments excludes unallocated corporate costs which are primarily comprised of costs for accounting, finance, legal, human resources and costs for certain executives supporting overall business strategy and execution. The following table sets forth the revenue and Adjusted EBITDA results attributable to each reportable segment and includes a reconciliation of the totals reported for the reportable segments to the applicable line items in the Company’s accompanying condensed consolidated statements of operations and comprehensive income (in thousands): Three Months Ended March 31, 2022 2021 Revenue Enterprise Solutions $ 30,860 $ 24,079 SMB Solutions 36,502 23,345 Total revenue 67,362 47,424 Adjusted EBITDA Enterprise Solutions 4,476 3,288 SMB Solutions 13,018 8,127 Total Adjusted EBITDA from reportable segments 17,494 11,415 Unallocated corporate expenses ( 6,937 ) ( 3,496 ) Total Adjusted EBITDA 10,557 7,919 Reconciling items: Interest expense, net ( 88 ) ( 2,305 ) Amortization of intangible assets ( 3,901 ) ( 3,900 ) Depreciation ( 740 ) ( 449 ) Transaction-related expenses 38 ( 384 ) Fair value adjustment of acquired deferred revenue — ( 59 ) Stock/equity-based compensation ( 2,987 ) ( 222 ) Income before income taxes 2,879 600 Provision for income taxes 820 115 Net income $ 2,059 $ 485 The Company’s CODM does not separately evaluate assets by segment, and therefore assets by segment are not presented. Geographic Information For the three months ended March 31, 2022 and 2021, revenues by geographic region are not disclosed as revenue outside the United States does not exceed 10 % of total revenue. The Company does not disclose geographic information for long-lived assets as long-lived assets located outside the United States do not exceed 10 % of total assets.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Risk of Concentrations of Credit and Significant Customers	Risk of Concentrations of Credit and Significant Customers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. At times, the Company may maintain cash balances in excess of federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those that accounted for 10% or more of the Company’s total revenue or accounts receivable during any period presented herein. During the three months ended March 31, 2022 and 2021, no customer accounted for 10 % or more of revenue. As of March 31, 2022 and December 31, 2021, no customer accounted for 10 % or more of accounts receivable.
Recently Adopted and Issued Accounting Pronouncements	Recently Adopted Accounting Prono uncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to recognize assets and liabilities on their balance sheet for the rights and obligations created by leases and to continue to recognize related expenses on their income statements over the lease term. It also requires disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this standard effective January 1, 2022 using the modified retrospective transition method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of transition practical expedients for existing contracts. Adoption of the new standard resulted in the recording of operating lease right-of-use assets of $ 31.4 million and operating lease liabilities of $ 37.1 million, as of January 1, 2022 . The difference between the operating lease right-of-use assets and operating lease liabilities relates to deferred rent balances, lease incentives, and liabilities recognized under Accounting Standards Codification ("ASC") 420, Exit or Disposal Cost Obligations , the net impact of which reduced the right-of-use assets. The adoption of the standard did not impact the Company's consolidated net earnings and had no impact on cash flows. Refer to Note 5 - Leases for additional information related to the Company’s lease obligations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss model with an expected loss model and requires the use of forward-looking information to calculate credit loss estimates. Effective January 1, 2022 , the Company adopted ASU 2016-13 on a modified retrospective basis. The adoption of ASU 2016-13 did no t have a material impact of the Company's condensed consolidated balance sheets, statements of operations and comprehensive income, or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles as well as clarifying and amending existing guidance to improve consistent application. Effective January 1, 2022 , the Company adopted ASU 2019-12 on a modified retrospective basis. The adoption of ASU 2019-12 did no t have a material impact of the Company's condensed consolidated balance sheets, statements of operations and comprehensive income, or cash flows. Recently Issued Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which requires the recognition and measurement of contract assets and liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and, if adopted early, requires the retrospective method of transition applied to transactions occurring on or after the beginning of the fiscal year of adoption. The Company is currently evaluating the timing of adoption of ASU 2021-08. The Company does not believe the adoption of ASU 2021-08 will have a material impact on its consolidated financial statements.
Leases	On January 1, 2022 , the Company adopted ASU 2016-02, Leases, using the modified retrospective transition method. The Company has elected to adopt the package of practical expedients which apply to leases that commenced before the adoption date. By electing the package of practical expedients, the Company did not reassess: whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases, and the initial direct costs for any existing leases. The Company has also elected to combine lease and non-lease components when calculating minimum lease payments on new leases for all asset classes. The Company has elected an accounting policy to forgo the recognition of lease assets or liabilities for short-term leases. Short-term leases are defined, in accordance with the standard, as those with terms of one year or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. The Company determines if an arrangement is or contains a lease at contract inception. The Company accounts for a contract as a lease when it has the right to direct the use of the asset for a period of time while obtaining substantially all of the asset’s economic benefits. The Company determines the initial classification and measurement of right-of-use ("ROU") assets and lease liabilities at the lease commencement date and thereafter at the modification date, if modified. ROU assets represent the Company's right to control the underlying assets under lease, and the lease liability is the Company's obligation to make the lease payments related to the underlying assets under lease, over the contractual term. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of future minimum fixed lease payments to be made over the lease term. The Company uses the non-cancellable lease term unless it is reasonably certain that a renewal or termination option will be exercised. When available, the Company will use the rate implicit in the lease to discount lease payments to present value. As most leases do not provide an implicit rate, the Company will estimate the incremental borrowing rate to discount the lease payments. The Company estimates the incremental borrowing rate based on the rates of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis, over a similar term, and in a similar economic environment. The ROU asset also includes any lease prepayments and initial direct costs, offset by lease incentives. Certain lease agreements contain variable lease payments which are not included in the measurement of the lease liability. Variable lease payments relate to taxes, insurance, utilities, and common area maintenance ("CAM"). These variable lease payments are recognized in the condensed consolidated statements of operations and comprehensive income in the period in which the obligation for those payments is incurred.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregated Revenue by Segment and Revenue Type	The following table depicts disaggregated revenue by segment and revenue type (in thousands): Three Months Ended March 31, 2022 2021 Enterprise Solutions Transaction and usage-based $ 28,319 $ 21,611 Subscription 2,081 1,827 Other 460 641 Total Enterprise Solutions revenue 30,860 24,079 SMB Solutions Transaction and usage-based 11,027 7,140 Subscription 25,052 16,010 Other 423 195 Total SMB Solutions revenue 36,502 23,345 Total revenue $ 67,362 $ 47,424

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income Per Share	The following table sets forth the computation of basic and diluted net income per share: Three Months Ended March 31, 2022 2021 (in thousands, except share and per share amounts) Numerator: Net income $ 2,059 $ 485 Denominator: Weighted average common shares outstanding, basic 162,143,171 147,698,362 Effect of potential dilutive common shares 6,872,941 1,933,508 Weighted average common shares outstanding, diluted 169,016,112 149,631,870 Net income per share, basic $ 0.01 $ 0.00 Net income per share, diluted $ 0.01 $ 0.00
Schedule of Common Shares Excluded from Computation of Diluted Net Income Per Share	The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net income per share for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended March 31, 2022 2021 Options to purchase common shares 580,711 6,456,900 Unvested restricted stock units 477,344 — Total 1,058,055 6,456,900

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Schedule of Components of Operating Lease Expense	The following table summarizes the components of operating lease expense (in thousands): Three Months Ended March 31, 2022 Operating lease cost $ 1,181 Variable lease cost 91 Total $ 1,272
Schedule of Weighted Average Remaining Lease Term and Discount Rate	The weighted average remaining lease term and discount rate were as follows: Three Months Ended March 31, 2022 Weighted-average remaining lease term 7.4 years Weighted-average discount rate 2.26 %
Schedule of Supplemental Cash Flow Information from Lease Transaction	The following table presents supplemental information relating to cash flows arising from lease transactions. Cash payments made for variable lease cost and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below (in thousands): Three Months Ended March 31, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,404 Right of use assets obtained in exchange for new operating lease liabilities $ 31,392
Schedule of Future Minimum Lease Payments	The following table presents the future minimum lease payments under the Company's operating leases liabilities as of March 31, 2022 (in thousands): Remainder of 2022 $ 3,801 2023 5,723 2024 5,750 2025 4,489 2026 4,079 Thereafter 14,810 Total lease payments $ 38,652 Less: imputed interest ( 3,209 ) Lease liabilities $ 35,443
Schedule of Future Minimum Payments under Non-cancellable Operating Leases	Under the previous lease accounting standard, ASC 840, Leases , (“ASC 840”), as previously disclosed in the 2021 Form 10-K for the year ended December 31, 2021, the total future minimum payments under non-cancellable operating leases as of December 31, 2021 was as follows (in thousands): 2022 $ 5,674 2023 5,716 2024 5,743 2025 4,481 2026 4,071 Thereafter 14,766 Total $ 40,451

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present the Company’s fair value hierarchy for its assets and liabilities that were measured at fair value on a recurring basis (in thousands): March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 202,022 $ — $ — $ 202,022 Liabilities: Contingent consideration liability $ — $ — $ — $ — December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 205,010 $ — $ — $ 205,010 Liabilities: Contingent consideration liability $ — $ — $ 2,800 $ 2,800
Changes in Fair Value of Contingent Consideration Liability	Changes in the fair value of the Company’s contingent consideration liability were as follows (in thousands): Balance as of December 31, 2021 $ 2,800 Payment of contingent consideration ( 2,800 ) Change in fair value — Balance as of March 31, 2022 $ —

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Carrying Amount of Goodwill by Reportable Segment	Changes in the carrying amount of goodwill by reportable segment through March 31, 2022 are as follows (in thousands): Enterprise Solutions SMB Solutions Total Balance as of December 31, 2021 $ 218,658 $ 207,019 $ 425,677 Goodwill acquired — — — Balance as of March 31, 2022 $ 218,658 $ 207,019 $ 425,677
Schedule of Acquired Intangible Assets	Acquired intangible assets of the Company consisted of the following (in thousands): March 31, 2022 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 82,841 $ ( 25,131 ) $ 57,710 Developed technology 7.0 42,913 ( 18,849 ) 24,064 Tradenames 5.0 5,824 ( 3,579 ) 2,245 Total $ 131,578 $ ( 47,559 ) $ 84,019 December 31, 2021 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 82,841 $ ( 23,059 ) $ 59,782 Developed technology 7.0 42,913 ( 17,311 ) 25,602 Tradenames 5.0 5,824 ( 3,288 ) 2,536 Total $ 131,578 $ ( 43,658 ) $ 87,920
Schedule of Future Estimated Amortization Expense of Intangible Assets	Future estimated amortization expense of the Company’s intangible assets as of March 31, 2022 is expected to be as follows (in thousands): Remainder of 2022 $ 11,700 2023 15,601 2024 14,640 2025 14,383 2026 9,335 Thereafter 18,360 Total $ 84,019

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, 2022 December 31, 2021 Accrued employee compensation and benefits $ 7,850 $ 12,437 Accrued consulting and professional fees 2,694 2,619 Accrued processing fees 2,152 1,626 Accrued channel partner fees 2,368 2,081 Accrued license fees 1,724 1,154 Accrued sales tax 674 615 Accrued restructuring — 387 Other 5,736 4,310 Total $ 23,198 $ 25,229

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Summary of Stock Based Compensation Expense	Stock-based compensation expense is reflected in the condensed consolidated statements of operations and comprehensive income as follows (in thousands): Three Months Ended March 31, 2022 2021 Cost of revenue $ 108 $ 4 General and administrative 2,319 184 Selling and marketing 403 23 Research and development 157 11 Total $ 2,987 $ 222

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Schedule of Reconciliation of Revenue and Adjusted EBITDA for Reportable Segments	The following table sets forth the revenue and Adjusted EBITDA results attributable to each reportable segment and includes a reconciliation of the totals reported for the reportable segments to the applicable line items in the Company’s accompanying condensed consolidated statements of operations and comprehensive income (in thousands): Three Months Ended March 31, 2022 2021 Revenue Enterprise Solutions $ 30,860 $ 24,079 SMB Solutions 36,502 23,345 Total revenue 67,362 47,424 Adjusted EBITDA Enterprise Solutions 4,476 3,288 SMB Solutions 13,018 8,127 Total Adjusted EBITDA from reportable segments 17,494 11,415 Unallocated corporate expenses ( 6,937 ) ( 3,496 ) Total Adjusted EBITDA 10,557 7,919 Reconciling items: Interest expense, net ( 88 ) ( 2,305 ) Amortization of intangible assets ( 3,901 ) ( 3,900 ) Depreciation ( 740 ) ( 449 ) Transaction-related expenses 38 ( 384 ) Fair value adjustment of acquired deferred revenue — ( 59 ) Stock/equity-based compensation ( 2,987 ) ( 222 ) Income before income taxes 2,879 600 Provision for income taxes 820 115 Net income $ 2,059 $ 485

Nature of Business and Basis _2

Nature of Business and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands	Sep. 27, 2021USD ($)$ / sharesshares	Sep. 10, 2021	Mar. 31, 2022USD ($)	Dec. 11, 2018
Subsidiary Sale Of Stock [Line Items]
Offering expenses			$ 12
Forward stock split, description			1-for-3
Forward stock split		0.3333
Invoice Cloud, Inc. | Hancock Midco, LLC.
Subsidiary Sale Of Stock [Line Items]
Equity interest percentage				100.00%
General Atlantic, L.P.
Subsidiary Sale Of Stock [Line Items]
Voting power	50.00%
Credit Facilities
Subsidiary Sale Of Stock [Line Items]
Repayments of outstanding borrowings	$ 114,200
IPO
Subsidiary Sale Of Stock [Line Items]
Net proceeds	326,400
Underwriting discounts	22,100
Offering expenses	$ 5,600
IPO | Common Stock
Subsidiary Sale Of Stock [Line Items]
Common stock shares issued and sold | shares	13,620,054
Share price per share | $ / shares	$ 26
Over Allotment Option | Common Stock
Subsidiary Sale Of Stock [Line Items]
Common stock shares issued and sold | shares	620,054
Existing Shareholders | Common Stock
Subsidiary Sale Of Stock [Line Items]
Sale of stock, shares issued | shares	3,112,446
Net proceeds	$ 75,900

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)Customer	Mar. 31, 2021Customer	Dec. 31, 2021Customer	Jan. 01, 2022USD ($)
Concentration Risk [Line Items]
Operating lease right-of-use assets | $	$ 30,257			$ 31,400
Operating lease liabilities | $	$ 35,443			$ 37,100
ASU 2016-02
Concentration Risk [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update, adoption date	Jan. 1, 2022
ASU 2016-13
Concentration Risk [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update, adoption date	Jan. 1, 2022
Change in accounting principle, accounting standards update, immaterial effect [true false]	true
ASU 2019-12
Concentration Risk [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update, adoption date	Jan. 1, 2022
Change in accounting principle, accounting standards update, immaterial effect [true false]	true
Customer Concentration | Sales Revenue
Concentration Risk [Line Items]
Number of customers accounted for 10% or more | Customer	0	0
Concentration risk percentage	10.00%	10.00%
Credit Concentration | Accounts Receivable
Concentration Risk [Line Items]
Number of customers accounted for 10% or more | Customer	0		0
Concentration risk percentage	10.00%		10.00%

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregated Revenue by Segment and Revenue Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 67,362	$ 47,424
Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	30,860	24,079
SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	36,502	23,345
Transaction and Usage-Based | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	28,319	21,611
Transaction and Usage-Based | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	11,027	7,140
Subscription | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	2,081	1,827
Subscription | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	25,052	16,010
Other | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	460	641
Other | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	$ 423	$ 195

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Contract assets	$ 0		$ 0
Deferred revenue current	7,600,000		6,800,000
Deferred revenue, non-current	200,000		$ 200,000
Deferred revenue, revenue recognized	$ 5,000,000	$ 3,600,000

Net Income Per Share - Computat

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income	$ 2,059	$ 485
Denominator:
Weighted average common shares outstanding, basic	162,143,171	147,698,362
Effect of potential dilutive common shares	6,872,941	1,933,508
Weighted average common shares outstanding, diluted	169,016,112	149,631,870
Net income per share, basic	$ 0.01	$ 0
Net income per share, diluted	$ 0.01	$ 0

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Common Shares Excluded from Computation of Diluted Net Income Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares excluded from computation of diluted net loss per share	1,058,055	6,456,900
Options to Purchase Common Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares excluded from computation of diluted net loss per share	580,711	6,456,900
Unvested Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares excluded from computation of diluted net loss per share	477,344

Leases - Schedule of Components

Leases - Schedule of Components of Operating Lease Expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Leases [Abstract]
Operating lease cost	$ 1,181
Variable lease cost	91
Total	$ 1,272

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details)	Mar. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term	7 years 4 months 24 days
Weighted-average discount rate	2.26%

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Cash Flow Information from Lease Transaction (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 1,404
Right of use assets obtained in exchange for new operating lease liabilities	$ 31,392

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jan. 01, 2022
Leases [Abstract]
Remainder of 2022	$ 3,801
2023	5,723
2024	5,750
2025	4,489
2026	4,079
Thereafter	14,810
Total lease payments	38,652
Less: imputed interest	(3,209)
Lease liabilities	$ 35,443	$ 37,100

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Future sublease payments, Remainder of 2022	$ 0.4
Future sublease payments, Thereafter	$ 1.5
Rent expense		$ 1.1
Deferred rent			$ 4.5
Minimum
Lessee, Lease, Description [Line Items]
Operating lease expiration, year	2022
Maximum
Lessee, Lease, Description [Line Items]
Operating lease expiration, year	2030
ASU 2016-02
Lessee, Lease, Description [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 1, 2022

Leases - Schedule of Future M_2

Leases - Schedule of Future Minimum Payments under Non-cancellable Operating Leases (Details) $ in Thousands	Dec. 31, 2021USD ($)
Leases [Abstract]
2022	$ 5,674
2023	5,716
2024	5,743
2025	4,481
2026	4,071
Thereafter	14,766
Total	$ 40,451

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Liabilities:
Contingent consideration liability		$ 2,800
Recurring Basis
Liabilities:
Contingent consideration liability		2,800
Recurring Basis | Level 3
Liabilities:
Contingent consideration liability		2,800
Recurring Basis | Money Market Funds
Assets:
Cash equivalents - money market funds	$ 202,022	205,010
Recurring Basis | Money Market Funds | Level 1
Assets:
Cash equivalents - money market funds	$ 202,022	$ 205,010

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Fair Value of Contingent Consideration Liability (Details) - Contingent Consideration Liability - Level 3 $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance as of December 31, 2021	$ 2,800
Payment of contingent consideration	(2,800)
Change in fair value	0
Balance as of March 31, 2022	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset transfers into or out of Level 3	$ 0
Liabilities transfers into or out of Level 3	$ 0

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 425,677		$ 425,677
Amortization expense	$ 3,900	$ 3,900

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill by Reportable Segment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Goodwill [Line Items]
Beginning balance	$ 425,677
Goodwill acquired	0
Ending balance	425,677
Enterprise Solutions
Goodwill [Line Items]
Beginning balance	218,658
Goodwill acquired	0
Ending balance	218,658
SMB Solutions
Goodwill [Line Items]
Beginning balance	207,019
Goodwill acquired	0
Ending balance	$ 207,019

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Gross Carrying Value	$ 131,578	$ 131,578
Accumulated Amortization	(47,559)	(43,658)
Net Carrying Value	$ 84,019	$ 87,920
Customer Relationships
Weighted Average Useful Life	10 years	10 years
Gross Carrying Value	$ 82,841	$ 82,841
Accumulated Amortization	(25,131)	(23,059)
Net Carrying Value	$ 57,710	$ 59,782
Developed Technology
Weighted Average Useful Life	7 years	7 years
Gross Carrying Value	$ 42,913	$ 42,913
Accumulated Amortization	(18,849)	(17,311)
Net Carrying Value	$ 24,064	$ 25,602
Trade Names
Weighted Average Useful Life	5 years	5 years
Gross Carrying Value	$ 5,824	$ 5,824
Accumulated Amortization	(3,579)	(3,288)
Net Carrying Value	$ 2,245	$ 2,536

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangible Assets - Schedule of Future Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2022	$ 11,700
2023	15,601
2024	14,640
2025	14,383
2026	9,335
Thereafter	18,360
Net Carrying Value	$ 84,019	$ 87,920

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued employee compensation and benefits	$ 7,850	$ 12,437
Accrued consulting and professional fees	2,694	2,619
Accrued processing fees	2,152	1,626
Accrued channel partner fees	2,368	2,081
Accrued license fees	1,724	1,154
Accrued sales tax	674	615
Accrued restructuring		387
Other	5,736	4,310
Total	$ 23,198	$ 25,229

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Sep. 27, 2021	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2019	Feb. 11, 2019
Debt Instrument [Line Items]
Long-term debt outstanding		$ 0	$ 0
Senior secured revolving credit facility					$ 7,500,000
Credit Facilities
Debt Instrument [Line Items]
Loss on debt extinguishment	$ 1,200,000
Repayments of outstanding borrowings	114,200,000
Letter of Credit Facility
Debt Instrument [Line Items]
Outstanding borrowings				$ 2,100,000
Letter of Credit Facility | JPMorgan Chase Bank, N.A.
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity	7,500,000
Initial Term Loan Facility
Debt Instrument [Line Items]
Aggregate principal amount					75,000,000
Delayed Draw Term Loan Facility
Debt Instrument [Line Items]
Aggregate principal amount					$ 35,000,000
2021 Revolving Credit Facility | JPMorgan Chase Bank, N.A.
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity	$ 75,000,000
Credit facility maturity date	Sep. 27, 2026
Credit facility commitment percentage	0.25%
Credit facility available to be drawn		72,900,000
Debt issuance costs	$ 1,200,000
2021 Revolving Credit Facility | Credit Facilities | JPMorgan Chase Bank, N.A.
Debt Instrument [Line Items]
Outstanding borrowings		$ 2,100,000	$ 2,100,000

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Millions	Sep. 27, 2021USD ($)$ / sharesshares	Sep. 10, 2021	Mar. 31, 2022$ / sharesshares	Dec. 31, 2021$ / sharesshares
Class Of Stock [Line Items]
Forward stock split, description			1-for-3
Forward stock split		0.3333
Preferred stock, shares authorized			10,000,000	10,000,000
Preferred stock, par value per share | $ / shares			$ 0.001	$ 0.001
Preferred stock, shares issued			0	0
Preferred stock, shares outstanding			0	0
Common stock, shares authorized			650,000,000	650,000,000
Common stock, par value per share | $ / shares			$ 0.001	$ 0.001
Common stock, shares, issued			162,434,392	161,860,980
Common stock, shares, outstanding			162,434,392	161,860,980
General Atlantic, L.P.
Class Of Stock [Line Items]
Proceeds from capital contribution | $	$ 43.2
Class A-1 Common Shares
Class Of Stock [Line Items]
Stock conversion basis			1:1
Common stock reclassified	0.9398
Additional shares of common stock subscribed	1,662,917
Class A-2 Common Shares
Class Of Stock [Line Items]
Stock conversion basis			1:1
Common stock reclassified	1.1102
Class A-3 Common Shares
Class Of Stock [Line Items]
Stock conversion basis			1:1
Common stock reclassified	1
IPO
Class Of Stock [Line Items]
Net proceeds | $	$ 326.4
Underwriting discounts | $	22.1
Offering expenses | $	$ 5.6
IPO | General Atlantic, L.P.
Class Of Stock [Line Items]
Additional shares of common stock subscribed	288,344
IPO | Common Stock
Class Of Stock [Line Items]
Common stock shares issued and sold	13,620,054
Share price per share | $ / shares	$ 26
Over Allotment Option | Common Stock
Class Of Stock [Line Items]
Common stock shares issued and sold	620,054

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Sep. 30, 2021	Mar. 31, 2022	Mar. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense		$ 2,987	$ 222
2021 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based awards granted to employees vesting period		4 years
Stock-based awards expired from date of grant		10 years
2021 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock reserved for future issuance (in shares)		2,219,728
Offering period	6 months
Common Stock | 2021 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for issuance increase each annual by percentage of common stock shares outstanding	5.00%
Common Stock | 2021 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for issuance increase each annual by percentage of common stock shares outstanding	1.00%
Eligible participants to purchase common stock through payroll deductions, percentage	15.00%
Percentage of purchase price of shares lesser than fair market value of common stock	85.00%
Restricted Stock Units | Common Stock | 2021 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock reserved for future issuance (in shares)		14,798,186
Shares available to grant		13,861,534

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	$ 2,987	$ 222
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	108	4
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	2,319	184
Selling and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	403	23
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	$ 157	$ 11

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	28.50%	19.20%
Statutory rate	21.00%	21.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Sep. 27, 2021	Feb. 11, 2019
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Future minimum payments under other non-cancellable agreements	$ 3,800,000
Future minimum payments under other non-cancellable agreements, expected to be paid by December 31, 2022	1,900,000
Future minimum payments under other non-cancellable agreements, expected to be paid by December 31, 2023	1,500,000
Future minimum payments under other non-cancellable agreements, expected to be paid by December 31, 2024	400,000
Class A-1 Common Shares
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Additional shares of common stock subscribed		1,662,917
CVR Plan | Invoice Cloud, Inc.
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Maximum bonus pool amount	9,500,000
Bonus pool amount outstanding	7,300,000
Compensation related bonus expense	$ 0
CVR Plan | Invoice Cloud, Inc. | Class A-1 Common Shares | Minimum
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Cash distribution upon achievement of performance threshold			$ 889,100,000
General Atlantic, L.P. | IPO
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Additional shares of common stock subscribed		288,344

Restructuring - Additional Info

Restructuring - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2022
Restructuring Cost And Reserve [Line Items]
Restructuring reversal (charges)	$ 200,000
Restructuring liability	1,200,000		$ 0
Office Space Abandonment
Restructuring Cost And Reserve [Line Items]
Restructuring charges		$ 2,400,000
Accrued Expenses and Other Current Liabilities
Restructuring Cost And Reserve [Line Items]
Restructuring liability	400,000
Other Long-Term Liabilities
Restructuring Cost And Reserve [Line Items]
Restructuring liability	$ 800,000

Related Parties - Additional In

Related Parties - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2019
Related Party Transaction [Line Items]
Repayment of notes	$ 5,900
Interest expense	100
Cash interest payments	$ 200
IVR Technologies Group, LLC
Related Party Transaction [Line Items]
Unsecured notes payable aggregate amount		$ 2,900
Interest rate		8.00%
Interest due maturity date		Jan. 16, 2021
Global Cloud, Ltd.
Related Party Transaction [Line Items]
Unsecured notes payable aggregate amount		$ 3,000
Interest rate		7.00%
Interest due maturity date		Mar. 12, 2021

Segment and Geographic Inform_3

Segment and Geographic Information - Additional Information (Details) - Segment	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Number of reportable segments	2
Maximum
Segment Reporting Information [Line Items]
Percentage of revenue generated from outside the United States	10.00%	10.00%
Percentage of long-lived assets located outside of United States	10.00%	10.00%
Enterprise Solutions | Transaction and Usage-Based
Segment Reporting Information [Line Items]
Percentage of revenue generated	46.00%
SMB Solutions | Subscription
Segment Reporting Information [Line Items]
Percentage of revenue generated	54.00%

Segment and Geographic Inform_4

Segment and Geographic Information - Schedule of Reconciliation of Revenue and Adjusted EBITDA for Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue
Total revenue	$ 67,362	$ 47,424
Adjusted EBITDA
Unallocated corporate expenses	(6,937)	(3,496)
Total Adjusted EBITDA	10,557	7,919
Amortization of intangible assets	(3,900)	(3,900)
Stock/equity-based compensation	(2,987)	(222)
Income before income taxes	2,879	600
Provision for income taxes	820	115
Net income and comprehensive income	2,059	485
Reportable Segment
Revenue
Total revenue	67,362	47,424
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	17,494	11,415
Segment Reconciling Items
Adjusted EBITDA
Interest expense, net	(88)	(2,305)
Amortization of intangible assets	(3,901)	(3,900)
Depreciation	(740)	(449)
Transaction-related expenses	38	(384)
Fair value adjustment of acquired deferred revenue		(59)
Stock/equity-based compensation	(2,987)	(222)
Enterprise Solutions
Revenue
Total revenue	30,860	24,079
Enterprise Solutions | Reportable Segment
Revenue
Total revenue	30,860	24,079
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	4,476	3,288
SMB Solutions
Revenue
Total revenue	36,502	23,345
SMB Solutions | Reportable Segment
Revenue
Total revenue	36,502	23,345
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	$ 13,018	$ 8,127