Engagesmart (ESMT) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 30, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
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	Accelerated Filer
Entity Common Stock, Shares Outstanding		166,743,782
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, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 318,291	$ 311,780
Accounts receivable, net of allowance for credit losses of $203 and $228 as of March 31, 2023 and December 31, 2022, respectively	12,275	10,971
Unbilled receivables	6,095	5,413
Prepaid expenses and other current assets	11,686	13,680
Total current assets	348,347	341,844
Operating lease right-of-use assets	25,731	26,907
Property and equipment, net	15,787	14,328
Goodwill	425,677	425,677
Acquired intangible assets, net	68,419	72,319
Other assets	5,820	5,422
Total assets	889,781	886,497
Current liabilities:
Accounts payable	652	1,229
Accrued expenses and other current liabilities	33,795	38,423
Deferred revenue	8,834	8,237
Operating lease liabilities	4,674	4,632
Total current liabilities	47,955	52,521
Long-term operating lease liabilities	25,845	27,161
Deferred income taxes	1,329	1,322
Deferred revenue, net of current portion	355	335
Other long-term liabilities	172	186
Total liabilities	75,656	81,525
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, 2023 and December 31, 2022
Common stock, par value $0.001 per share, 650,000,000 shares authorized and 166,617,401 and 166,081,011 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	167	166
Additional paid-in capital	819,347	814,319
Accumulated stockholders' deficit	(5,389)	(9,513)
Total stockholders' equity	814,125	804,972
Total liabilities and stockholders' equity	$ 889,781	$ 886,497

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Allowance for credit losses	$ 203	$ 228
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	166,617,401	166,081,011
Common stock, shares, outstanding	166,617,401	166,081,011

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 88,432	$ 67,362
Cost of revenue	20,899	16,039
Gross profit	67,533	51,323
Operating expenses:
General and administrative	15,407	13,287
Selling and marketing	29,126	22,664
Research and development	14,820	10,040
Amortization of intangible assets	2,362	2,362
Total operating expenses	61,715	48,353
Income from operations	5,818	2,970
Other income (expense), net:
Interest expense	(119)	(119)
Other income, net	2,539	28
Total other income (expense), net	2,420	(91)
Income before income taxes	8,238	2,879
Provision for income taxes	4,114	820
Net income and comprehensive income	$ 4,124	$ 2,059
Net income per share:
Basic	$ 0.02	$ 0.01
Diluted	$ 0.02	$ 0.01
Weighted-average number of shares outstanding:
Basic	166,359,810	162,143,171
Diluted	169,907,554	169,016,112

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 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
Balances at Dec. 31, 2022	804,972	$ 166	814,319	(9,513)
Balance, common, shares at Dec. 31, 2022		166,081,011
Issuance of common stock upon exercise of stock options	1,327	$ 1	1,326
Issuance of common stock upon exercise of stock options, shares		402,510
Vesting of restricted stock units, shares		199,145
Shares withheld for employee taxes	(1,198)		(1,198)
Shares withheld for employee taxes, shares		(65,265)
Stock-based compensation expense	4,900		4,900
Net income	4,124			4,124
Balances at Mar. 31, 2023	$ 814,125	$ 167	$ 819,347	$ (5,389)
Balance, common, shares at Mar. 31, 2023		166,617,401

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 4,124	$ 2,059
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	4,892	4,641
Amortization of deferred costs	191	66
Stock-based compensation expense	4,900	2,987
Non-cash operating lease expense	1,164	1,135
Deferred income taxes	7	820
Non-cash interest expense	58	58
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	1,803	(1,780)
Accounts receivable, net	(1,304)	412
Unbilled receivables	(682)	(1,657)
Other assets	(456)	(410)
Accounts payable	(561)	(1,415)
Accrued expenses and other current liabilities	(4,643)	(3,385)
Deferred revenue	617	846
Operating lease liabilities	(1,262)	(1,662)
Other long-term liabilities	(14)	26
Net cash provided by operating activities	8,834	2,741
Cash flows from investing activities:
Purchases of property and equipment, including costs capitalized for development of internal-use software	(2,452)	(1,509)
Net cash used in investing activities	(2,452)	(1,509)
Cash flows from financing activities:
Payment of debt issuance costs		(23)
Payments of contingent consideration		(1,066)
Proceeds from exercise of stock based options	1,327	1,897
Payments of taxes related to net share settlement of equity awards	(1,198)	(132)
Payment of initial public offering costs		(12)
Net cash provided by financing activities	129	664
Net increase in cash, cash equivalents and restricted cash	6,511	1,896
Cash, cash equivalents and restricted cash at beginning of period	312,080	254,594
Cash, cash equivalents and restricted cash at end of period	318,591	256,490
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	318,291	256,190
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	$ 318,591	$ 256,490
Supplemental cash flow information:
Cash paid for interest	63	57
Cash paid for taxes	320	1
Cash paid for amounts included in the measurement of operating lease liabilities	1,439	1,404
Supplemental disclosure of non-cash transactions:
Additions to property and equipment included in accounts payable and accrued expenses	183	100
Right of use assets obtained in exchange for new operating lease liabilities	$ (12)	31,392
Deferred initial public offering costs included in accrued expenses		$ 274

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2023
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 the Company's customers' engagement with its 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 the Company's 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. Secondary Offering On February 28, 2023, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC, as representatives of the several underwriters named therein, and certain of the Company’s stockholders, including affiliate s of General Atlantic, L.P ("General Atlantic") and Summit Partners and certain members of the Company’s management (collectively the “Selling Stockholders”), relating to an underwritten public offering (the “Secondary Offering”) of 8,000,000 shares of the Company’s common stock at a pri ce to the public of $ 19.00 per share, with an option exercisable by the underwriters for 30 days to purchase up to an additional 1,200,000 shares of common stock from certain of the Selling Stockholders at the public offering price, less underwriting discounts and commissions. In March 2023, pursuant to the Underwriting Agreement, the Selling Stockholders sold an aggregate of 9,200,000 shares of common stock in the Secondary Offering. The Company did no t receive any of the proceeds from the sale of common stock, with all proceeds going to the Selling Stockholders. In connection with the Secondary Offering, the Company incurred costs of $ 1.7 million during the three months ended March 31, 2023, which are included within general and administrative expenses on the condensed consolidated statement of operations and comprehensive income. Basis of Presentation 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. 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 conducted by its subsidiaries. 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, 2022, included in the Company's 2022 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
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, 2022, included in the Company's 2022 Form 10-K. There have been no significant changes to these policies during the three months ended March 31, 2023, 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. The Company's cash and cash equivalents are primarily maintained in accounts with two major financial institutions in the United States. At times, the Company may maintain cash and cash equivalent balances in excess of Federal Deposit Insurance Corporation ("FDIC") 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, 2023 and 2022, no customer accounted for 10 % or more of revenue. As of March 31, 2023 and December 31, 2022, no customer accounted for 10 % or more of accounts receivable. Recently Adopted Accounting Prono uncements 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 adopted this standard effective January 1, 2023 on a prospective basis, and it did no t have a material impact on its consolidated financial statements.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
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 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, 2023 2022 Enterprise Solutions Transaction and usage-based $ 35,406 $ 28,319 Subscription 2,555 2,081 Other 684 460 Total Enterprise Solutions revenue 38,645 30,860 SMB Solutions Transaction and usage-based 14,572 11,027 Subscription 34,903 25,052 Other 312 423 Total SMB Solutions revenue 49,787 36,502 Total revenue $ 88,432 $ 67,362 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, 2023 or December 31, 2022. 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 re cognized as revenue beyond 12 months of the balance sheet date are classified as non-current deferred revenue. The Company had current deferred revenue of $ 8.8 million and $ 8.2 million as of March 31, 2023 and December 31, 2022, respectively. Non-current deferred revenue was $ 0.4 million as of March 31, 2023 and $ 0.3 million as of December 31, 2022. During the three months ended March 31, 2023, the Company recognized revenue of $ 6.8 million from the deferred revenue balance as of December 31, 2022. 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. 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, 2023
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 shares of common stock outstanding during the period. Diluted net income per share is calculated by dividing net income by the sum of the weighted average number of shares of common stock 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 dilutive effect of the Company’s outstanding common stock equivalents is not included in the calculation 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, 2023 2022 (in thousands, except share and per share amounts) Numerator: Net income $ 4,124 $ 2,059 Denominator: Weighted average shares outstanding, basic 166,359,810 162,143,171 Effect of potential dilutive shares 3,547,744 6,872,941 Weighted average shares outstanding, diluted 169,907,554 169,016,112 Net income per share, basic $ 0.02 $ 0.01 Net income per share, diluted $ 0.02 $ 0.01 The Company excluded the following potential shares of common stock, 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, 2023 2022 Options to purchase shares 318,696 580,711 Unvested restricted stock units 389,930 477,344 Total 708,626 1,058,055

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	5. Leases The Company has operating leases for office spac e to support business operations. The Company's office leases expire at varying dates from 2023 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 Three Months Ended March 31, 2023 March 31, 2022 Operating lease cost $ 1,185 $ 1,181 Variable lease cost 94 91 Total $ 1,279 $ 1,272 The weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2023 December 31, 2022 Weighted-average remaining lease term 6.6 6.8 Weighted-average discount rate 2.26 % 2.26 % Maturity of Lease Liabilities The following table presents the future minimum lease payments under the Company's operating leases liabilities as of March 31, 2023 (in thousands): Remainder of 2023 $ 3,850 2024 5,750 2025 4,489 2026 4,079 2027 3,808 Thereafter 11,001 Total lease payments $ 32,977 Less: imputed interest ( 2,458 ) Lease liabilities $ 30,519 The Com pany 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 $ 0.8 million over the remainder of 2023 and $ 0.9 million thereafter. As of March 31, 2023, the Company has entered into one lease that has not yet commenced with future lease payments of $ 0.6 million in the aggregate and a term of approximately five years . The Company expects the lease to commence in the second quarter of 2023.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
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, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 269,906 $ — $ — $ 269,906 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 225,712 $ — $ — $ 225,712 Money market funds held as of March 31, 2023 and December 31, 2022 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. During the three months ended March 31, 2022, the Company fully settled its contingent consideration liability which was previously measured using Level 3 inputs. 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, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Acquired Intangible Assets	7. Goodwill and Acquired Intangible Assets The carrying amount of goodwill by segment resulting from the Company's acquisitions as of March 31, 2023 and December 31, 2022 was as follows: March 31, 2023 December 31, 2022 Enterprise Solutions $ 218,658 $ 218,658 SMB Solutions 207,019 207,019 Total $ 425,677 $ 425,677 Acquired intangible assets of the Company consisted of the following (in thousands): March 31, 2023 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 82,841 $ ( 33,414 ) $ 49,427 Developed technology 7.0 42,913 ( 25,001 ) 17,912 Tradenames 5.0 5,824 ( 4,744 ) 1,080 Total $ 131,578 $ ( 63,159 ) $ 68,419 December 31, 2022 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 82,841 $ ( 31,344 ) $ 51,497 Developed technology 7.0 42,913 ( 23,463 ) 19,450 Tradenames 5.0 5,824 ( 4,452 ) 1,372 Total $ 131,578 $ ( 59,259 ) $ 72,319 The Company recorded amortization expense of $ 3.9 million for each of the three month periods ended March 31, 2023 and 2022. Amorti zat ion of developed technology is recorded within cost of revenue, while amortization of customer relationships and tradenames is recorded within amortization of intangible assets on 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, 2023 is expected to be as follows (in thousands): Remainder of 2023 $ 11,700 2024 14,640 2025 14,383 2026 9,335 2027 8,284 Thereafter 10,077 Total $ 68,419

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2023
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, 2023 December 31, 2022 Accrued employee compensation and benefits $ 7,926 $ 16,897 Accrued consulting and professional fees 3,291 2,560 Accrued processing fees 3,256 2,287 Accrued channel partner fees 2,952 2,679 Accrued license fees 4,477 3,629 Accrued marketing 2,195 2,169 Accrued tax liabilities 2,944 1,769 Other 6,754 6,433 Total $ 33,795 $ 38,423

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	9. Debt As of March 31, 2023 and December 31, 2022, 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 . 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 term 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 o n the Company's condensed consolidated statements of operations and comprehensive income. As of March 31, 2023, 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.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	10. Stockholders' Equity Preferred Stock In connection with the Company's initial public offering ("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 per share, with rights and preferences, including voting rights, designated from time to time by the Board of Directors. As of March 31, 2023, no shares of preferred stock were issued or outstanding. Common Stock The Company's amended and restated certificate of incorpor ation authorized the issuance of 650,000,000 shares of common stock with a par value of $ 0.001 per share. As of March 31, 2023, there were 166,617,401 shares of common stock issued and outstanding.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2023
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 Company's 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 20 31 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, 2023, there were 11,574,631 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 the Company's 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 ended on May 31, 2022. Following the completion of the first offering period, the 2021 ESPP will typically be administered through consecutive six-m onth offering perio ds, commencing on June 1 st and December 1 st of each fiscal year. As of March 31, 2023, there were 2,155,456 shares of common stock available for issuance 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, 2023 2022 Cost of revenue $ 551 $ 108 General and administrative 2,442 2,319 Selling and marketing 951 403 Research and development 956 157 Total $ 4,900 $ 2,987

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The Company's effective income tax rates were 49.9 % and 28.5 % for the three months ended March 31, 2023 and 2022, respectively. The effective tax rate for the three months ended March 31, 2023 was higher than the statutory rate of 21.0 % primarily due to stock-based compensation adjustments, the impact of state taxes and the impact of the valuation allowance, partially offset by excess benefits from stock-based compensation. 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.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Non-Cancellable Commitments As of March 31, 2023, 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, 2023, future minimum payments under other non-cancellable agreements were as follows (in thousands): Remainder of 2023 $ 3,437 2024 2,915 2025 499 2026 83 2027 — Thereafter — Total $ 6,934 Contingent Value Payments In 2019, the CVR Bonus Award Plan ("CVR Plan") was established for the benefit of option holders as of February 11, 2019 in the event that holders of Class A-1 common shares of EngageSmart, LLC (the Company's predecessor) receive cash distributions in connection with certa in exit events specified under EngageSmart, LLC's LLC Agreement of at least $ 889.1 million (the “Performance Threshold”). Subject to the achievement of the Performance Threshold, CVR Unit Awards ("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, $ 6.0 million remains outstanding as of March 31, 2023. No compensation expense has been recognized in relation to the CVR Plan as the Company has determined that achievement of the Performance Threshold is not probable as of March 31, 2023. In connection with the Company’s IPO in 2021, the CVR Plan was amended to reflect the conversion of EngageSmart, LLC to EngageSmart, Inc. and the CVR Units otherwise remain subject to substantially the same terms and conditions applicable immediately prior to the Company’s IPO. Following the IPO and the conversion of EngageSmart, LLC to EngageSmart, Inc. (and related transactions), 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 events specified under the amended CVR Plan. 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 and/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 any 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, 2023 and December 31, 2022. 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. In situations where the Company assesses the likelihood of loss as probable, the Company records its best estimate of the ultimate loss if reasonably possible to estimate. While the outcome of these claims cannot be predicted with certainty, the Company believes that these pending or threatened legal proceedings or claims could not have a material impact on the Company’s condensed consolidated financial statements.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment and Geographic Information	14. 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, 2023, this segment generated 44 % 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, 2023, this segment generated 56 % 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 income (expense), net; provision for income taxes; depreciation; and amortization of intangible assets, as further adjusted for transaction-related expenses and stock-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, 2023 2022 Revenue Enterprise Solutions $ 38,645 $ 30,860 SMB Solutions 49,787 36,502 Total revenue $ 88,432 $ 67,362 Adjusted EBITDA Enterprise Solutions 6,423 4,476 SMB Solutions 18,468 13,018 Total Adjusted EBITDA from reportable segments 24,891 17,494 Unallocated corporate expenses ( 7,569 ) ( 6,937 ) Total Adjusted EBITDA 17,322 10,557 Reconciling items: Interest income (expense), net 2,420 ( 88 ) Amortization of intangible assets ( 3,900 ) ( 3,901 ) Depreciation ( 992 ) ( 740 ) Transaction-related expenses ( 1,712 ) 38 Stock-based compensation ( 4,900 ) ( 2,987 ) Income before income taxes 8,238 2,879 Provision for income taxes 4,114 820 Net income $ 4,124 $ 2,059 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, 2023 and 2022, 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, 2023
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. The Company's cash and cash equivalents are primarily maintained in accounts with two major financial institutions in the United States. At times, the Company may maintain cash and cash equivalent balances in excess of Federal Deposit Insurance Corporation ("FDIC") 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, 2023 and 2022, no customer accounted for 10 % or more of revenue. As of March 31, 2023 and December 31, 2022, no customer accounted for 10 % or more of accounts receivable.
Recently Adopted and Issued Accounting Pronouncements	Recently Adopted Accounting Prono uncements 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 adopted this standard effective January 1, 2023 on a prospective basis, and it did no t have a material impact on its consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 2022 Enterprise Solutions Transaction and usage-based $ 35,406 $ 28,319 Subscription 2,555 2,081 Other 684 460 Total Enterprise Solutions revenue 38,645 30,860 SMB Solutions Transaction and usage-based 14,572 11,027 Subscription 34,903 25,052 Other 312 423 Total SMB Solutions revenue 49,787 36,502 Total revenue $ 88,432 $ 67,362

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 2022 (in thousands, except share and per share amounts) Numerator: Net income $ 4,124 $ 2,059 Denominator: Weighted average shares outstanding, basic 166,359,810 162,143,171 Effect of potential dilutive shares 3,547,744 6,872,941 Weighted average shares outstanding, diluted 169,907,554 169,016,112 Net income per share, basic $ 0.02 $ 0.01 Net income per share, diluted $ 0.02 $ 0.01
Schedule of Common Shares Excluded from Computation of Diluted Net Income Per Share	The Company excluded the following potential shares of common stock, 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, 2023 2022 Options to purchase shares 318,696 580,711 Unvested restricted stock units 389,930 477,344 Total 708,626 1,058,055

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of Components of Operating Lease Expense	The following table summarizes the components of operating lease expense (in thousands): Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 Operating lease cost $ 1,185 $ 1,181 Variable lease cost 94 91 Total $ 1,279 $ 1,272
Schedule of Weighted Average Remaining Lease Term and Discount Rate	The weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2023 December 31, 2022 Weighted-average remaining lease term 6.6 6.8 Weighted-average discount rate 2.26 % 2.26 %
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, 2023 (in thousands): Remainder of 2023 $ 3,850 2024 5,750 2025 4,489 2026 4,079 2027 3,808 Thereafter 11,001 Total lease payments $ 32,977 Less: imputed interest ( 2,458 ) Lease liabilities $ 30,519

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 269,906 $ — $ — $ 269,906 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 225,712 $ — $ — $ 225,712
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, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Carrying Amount of Goodwill by Segment	The carrying amount of goodwill by segment resulting from the Company's acquisitions as of March 31, 2023 and December 31, 2022 was as follows: March 31, 2023 December 31, 2022 Enterprise Solutions $ 218,658 $ 218,658 SMB Solutions 207,019 207,019 Total $ 425,677 $ 425,677
Schedule of Acquired Intangible Assets	Acquired intangible assets of the Company consisted of the following (in thousands): March 31, 2023 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 82,841 $ ( 33,414 ) $ 49,427 Developed technology 7.0 42,913 ( 25,001 ) 17,912 Tradenames 5.0 5,824 ( 4,744 ) 1,080 Total $ 131,578 $ ( 63,159 ) $ 68,419 December 31, 2022 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 82,841 $ ( 31,344 ) $ 51,497 Developed technology 7.0 42,913 ( 23,463 ) 19,450 Tradenames 5.0 5,824 ( 4,452 ) 1,372 Total $ 131,578 $ ( 59,259 ) $ 72,319
Schedule of Future Estimated Amortization Expense of Intangible Assets	Future estimated amortization expense of the Company’s intangible assets as of March 31, 2023 is expected to be as follows (in thousands): Remainder of 2023 $ 11,700 2024 14,640 2025 14,383 2026 9,335 2027 8,284 Thereafter 10,077 Total $ 68,419

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 December 31, 2022 Accrued employee compensation and benefits $ 7,926 $ 16,897 Accrued consulting and professional fees 3,291 2,560 Accrued processing fees 3,256 2,287 Accrued channel partner fees 2,952 2,679 Accrued license fees 4,477 3,629 Accrued marketing 2,195 2,169 Accrued tax liabilities 2,944 1,769 Other 6,754 6,433 Total $ 33,795 $ 38,423

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 2022 Cost of revenue $ 551 $ 108 General and administrative 2,442 2,319 Selling and marketing 951 403 Research and development 956 157 Total $ 4,900 $ 2,987

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Contractual Obligation Future Minimum Payments Under Other Non-Cancellable Agreements	As of March 31, 2023, future minimum payments under other non-cancellable agreements were as follows (in thousands): Remainder of 2023 $ 3,437 2024 2,915 2025 499 2026 83 2027 — Thereafter — Total $ 6,934

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 2022 Revenue Enterprise Solutions $ 38,645 $ 30,860 SMB Solutions 49,787 36,502 Total revenue $ 88,432 $ 67,362 Adjusted EBITDA Enterprise Solutions 6,423 4,476 SMB Solutions 18,468 13,018 Total Adjusted EBITDA from reportable segments 24,891 17,494 Unallocated corporate expenses ( 7,569 ) ( 6,937 ) Total Adjusted EBITDA 17,322 10,557 Reconciling items: Interest income (expense), net 2,420 ( 88 ) Amortization of intangible assets ( 3,900 ) ( 3,901 ) Depreciation ( 992 ) ( 740 ) Transaction-related expenses ( 1,712 ) 38 Stock-based compensation ( 4,900 ) ( 2,987 ) Income before income taxes 8,238 2,879 Provision for income taxes 4,114 820 Net income $ 4,124 $ 2,059

Nature of Business and Basis _2

Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($)		3 Months Ended
	Feb. 28, 2023	Mar. 31, 2023	Mar. 31, 2022
Subsidiary Sale Of Stock [Line Items]
Costs incurred			$ 12,000
Secondary Offering | General and Administrative Expense
Subsidiary Sale Of Stock [Line Items]
Offering stock incurred cost		$ 1,700,000
Secondary Offering | Common Stock
Subsidiary Sale Of Stock [Line Items]
Share price per share	$ 19
Sale of Stock, Number of Shares Issued in Transaction	8,000,000	9,200,000
Sale of stock, shares issued	8,000,000	9,200,000
Proceeds from sale of common stock		$ 0
Secondary Offering Additional Shares of Common Stock | Common Stock
Subsidiary Sale Of Stock [Line Items]
Sale of Stock, Number of Shares Issued in Transaction	1,200,000
Sale of stock, shares issued	1,200,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2023 FinancialInstitutions Customer	Mar. 31, 2022 Customer	Dec. 31, 2022 Customer
Concentration Risk [Line Items]
Primary accounts maintained with number of major financial institutions | FinancialInstitutions	2
ASU 2021-08
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. 01, 2023
Change in accounting principle, accounting standards update, immaterial effect [true false]	true
Customer Concentration
Concentration Risk [Line Items]
Concentration risk percentage	10%
Customer Concentration | Sales Revenue
Concentration Risk [Line Items]
Number of customers accounted for 10% or more	0	0
Concentration risk percentage	10%	10%
Credit Concentration | Accounts Receivable
Concentration Risk [Line Items]
Number of customers accounted for 10% or more	0		0
Concentration risk percentage	10%		10%

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregated Revenue by Segment and Revenue Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 88,432	$ 67,362
Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	38,645	30,860
SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	49,787	36,502
Transaction and Usage-Based | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	35,406	28,319
Transaction and Usage-Based | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	14,572	11,027
Subscription | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	2,555	2,081
Subscription | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	34,903	25,052
Other | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	684	460
Other | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	$ 312	$ 423

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Contract assets	$ 0		$ 0
Deferred revenue current	8,800,000		8,200,000
Deferred revenue, non-current	400,000		$ 300,000
Deferred revenue, revenue recognized	$ 6,800,000	$ 5,000,000

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, 2023	Mar. 31, 2022
Numerator:
Net income	$ 4,124	$ 2,059
Denominator:
Weighted average shares outstanding, basic	166,359,810	162,143,171
Effect of potential dilutive shares	3,547,744	6,872,941
Weighted average shares outstanding, diluted	169,907,554	169,016,112
Net income per share, basic	$ 0.02	$ 0.01
Net income per share, diluted	$ 0.02	$ 0.01

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, 2023	Mar. 31, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares excluded from computation of diluted net income per share	708,626	1,058,055
Options to Purchase Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares excluded from computation of diluted net income per share	318,696	580,711
Unvested Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares excluded from computation of diluted net income per share	389,930	477,344

Leases - Schedule of Components

Leases - Schedule of Components of Operating Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 1,185	$ 1,181
Variable lease cost	94	91
Total	$ 1,279	$ 1,272

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details)	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term	6 years 7 months 6 days	6 years 9 months 18 days
Weighted-average discount rate	2.26%	2.26%

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Remainder of 2023	$ 3,850
2024	5,750
2025	4,489
2026	4,079
2027	3,808
Thereafter	11,001
Total lease payments	32,977
Less: imputed interest	(2,458)
Lease liabilities	$ 30,519

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) Agreement
Lessee, Lease, Description [Line Items]
Future sublease receipts, Remainder of 2023	$ 0.8
Future sublease receipts, Thereafter	$ 0.9
Number of lease agreements, not yet commenced | Agreement	1
Operating lease, lease not yet commenced, term of contract	5 years
Operating lease, lease not yet commenced future lease payments	$ 0.6
Maximum
Lessee, Lease, Description [Line Items]
Operating lease expiration, year	2030
Minimum
Lessee, Lease, Description [Line Items]
Operating lease expiration, year	2023

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - Money Market Funds - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets:
Cash equivalents - money market funds	$ 269,906	$ 225,712
Level 1
Assets:
Cash equivalents - money market funds	$ 269,906	$ 225,712

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, 2022 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 2,800
Payment of contingent consideration	(2,800)
Change in fair value	0
Ending Balance	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset transfers into or out of Level 3	$ 0	$ 0
Liabilities transfers into or out of Level 3	$ 0	$ 0

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
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 Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill [Line Items]
Goodwill	$ 425,677	$ 425,677
Enterprise Solutions
Goodwill [Line Items]
Goodwill	218,658	218,658
SMB Solutions
Goodwill [Line Items]
Goodwill	$ 207,019	$ 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, 2023	Dec. 31, 2022
Gross Carrying Value	$ 131,578	$ 131,578
Accumulated Amortization	(63,159)	(59,259)
Net Carrying Value	$ 68,419	$ 72,319
Customer Relationships
Weighted Average Useful Life	10 years	10 years
Gross Carrying Value	$ 82,841	$ 82,841
Accumulated Amortization	(33,414)	(31,344)
Net Carrying Value	$ 49,427	$ 51,497
Developed Technology
Weighted Average Useful Life	7 years	7 years
Gross Carrying Value	$ 42,913	$ 42,913
Accumulated Amortization	(25,001)	(23,463)
Net Carrying Value	$ 17,912	$ 19,450
Trade Names
Weighted Average Useful Life	5 years	5 years
Gross Carrying Value	$ 5,824	$ 5,824
Accumulated Amortization	(4,744)	(4,452)
Net Carrying Value	$ 1,080	$ 1,372

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, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 11,700
2024	14,640
2025	14,383
2026	9,335
2027	8,284
Thereafter	10,077
Net Carrying Value	$ 68,419	$ 72,319

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, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued employee compensation and benefits	$ 7,926	$ 16,897
Accrued consulting and professional fees	3,291	2,560
Accrued processing fees	3,256	2,287
Accrued channel partner fees	2,952	2,679
Accrued license fees	4,477	3,629
Accrued marketing	2,195	2,169
Accrued tax liabilities	2,944	1,769
Other	6,754	6,433
Total	$ 33,795	$ 38,423

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Sep. 27, 2021	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term debt outstanding		$ 0	$ 0
Letter of Credit Facility | JPMorgan Chase Bank, N.A.
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity	$ 7,500,000
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

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - $ / shares	Mar. 31, 2023	Dec. 31, 2022	Sep. 27, 2021
Class Of Stock [Line Items]
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value per share	$ 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	$ 0.001	$ 0.001
Common stock, shares, issued	166,617,401	166,081,011
Common stock, shares, outstanding	166,617,401	166,081,011
IPO | General Atlantic, L.P.
Class Of Stock [Line Items]
Additional shares of common stock subscribed			288,344

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Sep. 30, 2021	Mar. 31, 2023	Mar. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense		$ 4,900	$ 2,987
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%
Common Stock | 2021 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available to grant		2,155,456
Number of shares available for issuance increase each annual by percentage of common stock shares outstanding	1%
Eligible participants to purchase common stock through payroll deductions, percentage	15%
Percentage of purchase price of shares lesser than fair market value of common stock	85%
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		11,574,631

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	$ 4,900	$ 2,987
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	551	108
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	2,442	2,319
Selling and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	951	403
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	$ 956	$ 157

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	49.90%	28.50%
Statutory rate	21%	21%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Sep. 27, 2021	Feb. 11, 2019
CVR Plan | Invoice Cloud, Inc.
Loss Contingencies [Line Items]
Maximum bonus pool amount	$ 9,500,000
Bonus pool amount outstanding	6,000,000
Compensation related bonus expense	$ 0	$ 0
CVR Plan | Invoice Cloud, Inc. | Class A-1 Common Shares | Minimum
Loss Contingencies [Line Items]
Cash distribution upon achievement of performance threshold				$ 889,100,000
General Atlantic, L.P. | IPO
Loss Contingencies [Line Items]
Additional shares of common stock subscribed			288,344

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Contractual Obligation Future Minimum Payments Under Other Non-Cancellable Agreements (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
Remainder of 2023	$ 3,437
2024	2,915
2025	499
2026	83
2027	0
Thereafter	0
Total	$ 6,934

Segment and Geographic Inform_3

Segment and Geographic Information - Additional Information (Details) - Segment	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
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%	10%
Percentage of long-lived assets located outside of United States	10%	10%
Enterprise Solutions
Segment Reporting Information [Line Items]
Percentage of revenue generated	44%
SMB Solutions
Segment Reporting Information [Line Items]
Percentage of revenue generated	56%

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, 2023	Mar. 31, 2022
Revenue
Total revenue	$ 88,432	$ 67,362
Adjusted EBITDA
Unallocated corporate expenses	(7,569)	(6,937)
Total Adjusted EBITDA	17,322	10,557
Amortization of intangible assets	(3,900)	(3,900)
Stock-based compensation	(4,900)	(2,987)
Income before income taxes	8,238	2,879
Provision for income taxes	4,114	820
Net income and comprehensive income	4,124	2,059
Reportable Segment
Revenue
Total revenue	88,432	67,362
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	24,891	17,494
Segment Reconciling Items
Adjusted EBITDA
Interest income (expense), net	2,420	(88)
Amortization of intangible assets	(3,900)	(3,901)
Depreciation	(992)	(740)
Transaction-related expenses	(1,712)	38
Stock-based compensation	(4,900)	(2,987)
Enterprise Solutions
Revenue
Total revenue	38,645	30,860
Enterprise Solutions | Reportable Segment
Revenue
Total revenue	38,645	30,860
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	6,423	4,476
SMB Solutions
Revenue
Total revenue	49,787	36,502
SMB Solutions | Reportable Segment
Revenue
Total revenue	49,787	36,502
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	$ 18,468	$ 13,018