Engagesmart (ESMT) 10-Q 2 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
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		168,096,841
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	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 366,034	$ 311,780
Accounts receivable, net of allowance for credit losses of $184 and $228 as of September 30, 2023 and December 31, 2022, respectively	10,672	10,971
Unbilled receivables	6,716	5,413
Prepaid expenses and other current assets	13,076	13,680
Total current assets	396,498	341,844
Operating lease right-of-use assets	24,020	26,907
Property and equipment, net	17,788	14,328
Goodwill	423,406	425,677
Acquired intangible assets, net	61,462	72,319
Other assets	6,536	5,422
Total assets	929,710	886,497
Current liabilities:
Accounts payable	1,457	1,229
Accrued expenses and other current liabilities	43,697	38,423
Deferred revenue	9,126	8,237
Operating lease liabilities	4,837	4,632
Total current liabilities	59,117	52,521
Long-term operating lease liabilities	23,669	27,161
Deferred income taxes	657	1,322
Contingent consideration liability, net of current portion	1,475
Deferred revenue, net of current portion	345	335
Other long-term liabilities	2,214	186
Total liabilities	87,477	81,525
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock, par value $0.001 per share, 10,000,000 shares authorized and no shares issued and outstanding as of September 30, 2023 and December 31, 2022
Common stock, par value $0.001 per share, 650,000,000 shares authorized and 167,864,066 and 166,081,011 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	168	166
Additional paid-in capital	831,586	814,319
Retained earnings (accumulated deficit)	10,479	(9,513)
Total stockholders' equity	842,233	804,972
Total liabilities and stockholders' equity	$ 929,710	$ 886,497

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Allowance for credit losses	$ 184	$ 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	167,864,066	166,081,011
Common stock, shares, outstanding	167,864,066	166,081,011

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenue	$ 97,732	$ 78,796	$ 280,573	$ 220,020
Cost of revenue	21,821	18,845	64,357	52,687
Gross profit	75,911	59,951	216,216	167,333
Operating expenses:
General and administrative	18,218	13,986	48,081	42,270
Selling and marketing	33,596	25,906	93,143	72,262
Research and development	17,889	12,978	49,402	34,011
Gain on sale of business	(10,511)		(10,511)
Amortization of intangible assets	2,402	2,363	7,126	7,087
Total operating expenses	61,594	55,233	187,241	155,630
Income from operations	14,317	4,718	28,975	11,703
Other income (expense), net:
Interest expense	(135)	(121)	(375)	(361)
Other income, net	3,683	1,116	9,544	1,466
Total other income (expense), net	3,548	995	9,169	1,105
Income before income taxes	17,865	5,713	38,144	12,808
Provision for (benefit from) income taxes	6,335	(1,057)	18,152	(2,900)
Net income and comprehensive income	$ 11,530	$ 6,770	$ 19,992	$ 15,708
Net income per share:
Basic	$ 0.07	$ 0.04	$ 0.12	$ 0.1
Diluted	$ 0.07	$ 0.04	$ 0.12	$ 0.09
Weighted-average number of shares outstanding:
Basic	167,546,450	164,427,770	166,940,589	163,195,976
Diluted	170,269,392	169,222,794	170,049,993	169,064,015

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated 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, 2021	757,099	$ 162	787,043	(30,106)
Balance, common, shares at Dec. 31, 2021		161,860,980
Net income	15,708
Balances at Sep. 30, 2022	794,101	$ 165	808,334	(14,398)
Balance, common, shares at Sep. 30, 2022		165,268,125
Balances at Mar. 31, 2022	763,910	$ 162	791,795	(28,047)
Balance, common, shares at Mar. 31, 2022		162,434,392
Issuance of common stock upon exercise of stock options	3,691	$ 2	3,689
Issuance of common stock upon exercise of stock options, shares		1,162,554
Issuance of common stock in connection with employee stock purchase plan	463		463
Issuance of common stock in connection with employee stock purchase plan, shares		25,930
Vesting of restricted stock units, shares		18,018
Shares withheld for employee taxes	(134)		(134)
Shares withheld for employee taxes, shares		(6,076)
Stock-based compensation expense	3,327		3,327
Net income	6,879			6,879
Balances at Jun. 30, 2022	778,136	$ 164	799,140	(21,168)
Balance, common, shares at Jun. 30, 2022		163,634,818
Issuance of common stock upon exercise of stock options	5,599	$ 1	5,598
Issuance of common stock upon exercise of stock options, shares		1,605,814
Vesting of restricted stock units, shares		38,777
Shares withheld for employee taxes	(202)		(202)
Shares withheld for employee taxes, shares		(11,284)
Stock-based compensation expense	3,798		3,798
Net income	6,770			6,770
Balances at Sep. 30, 2022	794,101	$ 165	808,334	(14,398)
Balance, common, shares at Sep. 30, 2022		165,268,125
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
Balances at Dec. 31, 2022	804,972	$ 166	814,319	(9,513)
Balance, common, shares at Dec. 31, 2022		166,081,011
Net income	19,992
Balances at Sep. 30, 2023	842,233	$ 168	831,586	10,479
Balance, common, shares at Sep. 30, 2023		167,864,066
Balances at Mar. 31, 2023	814,125	$ 167	819,347	(5,389)
Balance, common, shares at Mar. 31, 2023		166,617,401
Issuance of common stock upon exercise of stock options	1,077		1,077
Issuance of common stock upon exercise of stock options, shares		375,400
Issuance of common stock in connection with employee stock purchase plan	981		981
Issuance of common stock in connection with employee stock purchase plan, shares		67,359
Vesting of restricted stock units, shares		228,166
Shares withheld for employee taxes	(1,365)		(1,365)
Shares withheld for employee taxes, shares		(72,159)
Stock-based compensation expense	5,102		5,102
Net income	4,338			4,338
Balances at Jun. 30, 2023	824,258	$ 167	825,142	(1,051)
Balance, common, shares at Jun. 30, 2023		167,216,167
Issuance of common stock upon exercise of stock options	1,440	$ 1	1,439
Issuance of common stock upon exercise of stock options, shares		478,737
Vesting of restricted stock units, shares		254,677
Shares withheld for employee taxes	(1,611)		(1,611)
Shares withheld for employee taxes, shares		(85,515)
Stock-based compensation expense	6,616		6,616
Net income	11,530			11,530
Balances at Sep. 30, 2023	$ 842,233	$ 168	$ 831,586	$ 10,479
Balance, common, shares at Sep. 30, 2023		167,864,066

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 19,992	$ 15,708
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	14,838	13,989
Amortization of deferred costs	692	277
Stock-based compensation expense	16,618	10,112
Non-cash operating lease expense	3,496	3,385
Deferred income taxes	(665)	(2,900)
Loss on disposal of property and equipment	503	22
Non-cash interest expense	175	175
Gain on sale of business	(10,511)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(440)	(3,850)
Accounts receivable, net	(1,102)	(2,106)
Unbilled receivables	(1,880)	(2,281)
Other assets	(1,735)	(1,382)
Accounts payable	362	(1,253)
Accrued expenses and other current liabilities	4,862	7,227
Deferred revenue	1,019	1,080
Operating lease liabilities	(3,886)	(4,115)
Other long-term liabilities	89	26
Net cash provided by operating activities	42,427	34,114
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(11,782)
Proceeds from sale of business, net of cash sold	30,027
Purchases of property and equipment, including costs capitalized for development of internal-use software	(7,069)	(4,759)
Net cash provided by (used in) investing activities	11,176	(4,759)
Cash flows from financing activities:
Payment of debt issuance costs		(23)
Payments of contingent consideration		(1,066)
Proceeds from exercise of stock based options	3,844	11,187
Payments of taxes related to net share settlement of equity awards	(4,174)	(468)
Proceeds from issuance of common stock under employee stock purchase plan	981	463
Payment of initial public offering costs		(286)
Net cash provided by financing activities	651	9,807
Net increase in cash, cash equivalents and restricted cash	54,254	39,162
Cash, cash equivalents and restricted cash at beginning of period	312,080	254,594
Cash, cash equivalents and restricted cash at end of period	366,334	293,756
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	366,034	293,456
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	$ 366,334	$ 293,756
Supplemental cash flow information:
Cash paid for interest	186	181
Cash paid for taxes	19,411	4,330
Cash paid for amounts included in the measurement of operating lease liabilities	4,406	4,246
Supplemental disclosure of non-cash transactions:
Additions to property and equipment included in accounts payable and accrued expenses	168	189
Right of use assets obtained in exchange for new operating lease liabilities	609	$ 31,409
Fair value of contingent consideration recorded in purchase accounting	$ 1,475

Nature of Business and Basis of

Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 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, and DonorDrive, that are designed to simplify the Company's customers' engagement with its clients by driving digital adoption and self-service. On August 2, 2023, the Company divested the entity that operated the HealthPay24 solution, which was previously included in the Company's Enterprise Solutions segment. The Company serves customers across several core verticals: Health & Wellness, Government, Utilities, Financial Services, 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. On October 23, 2023, EngageSmart entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Icefall Parent, LLC, a Delaware limited liability company and affiliate of Vista Equity Partners (“Parent”), and Icefall Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”, and together with Parent, the “Buyer Parties”), providing for the merger of Merger Sub with and into the Company, with the Company continuing as the surviving corporation (the “Merger”). Refer to Note 16 - Subsequent Events , for further information. 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 $ 1.6 million during the nine months ended September 30, 2023, which are included within general and administrative expenses on the condensed consolidated statement of operations and comprehensive income. Basis of Presentation The accompanying condensed 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	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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 three 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 nine months ended September 30, 2023 and 2022, no customer accounted for 10 % or more of revenue. As of September 30, 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	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Enterprise Solutions Transaction and usage-based $ 39,783 $ 32,620 $ 113,337 $ 90,928 Subscription 2,123 2,280 7,354 6,517 Other 345 966 1,513 2,298 Total Enterprise Solutions revenue 42,251 35,866 122,204 99,743 SMB Solutions Transaction and usage-based 15,927 11,349 46,657 33,613 Subscription 39,289 31,216 110,821 85,493 Other 265 365 891 1,171 Total SMB Solutions revenue 55,481 42,930 158,369 120,277 Total revenue $ 97,732 $ 78,796 $ 280,573 $ 220,020 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 rig ht 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 September 30, 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 subscription 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 reve nue 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 of $ 9.1 million and $ 8.2 million as of September 30, 2023 and December 31, 2022, respectively. Non-current deferred revenue was $ 0.3 million as of September 30, 2023 and December 31, 2022. During the nine months ended September 30, 2023, the Company recognized revenue of $ 7.9 million from the deferred revenue balance as of December 31, 2022. During the nine months ended September 30, 2022, the Company recognized revenue of $ 6.5 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	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except share and per share amounts) Numerator: Net income $ 11,530 $ 6,770 $ 19,992 $ 15,708 Denominator: Weighted average shares outstanding, basic 167,546,450 164,427,770 166,940,589 163,195,976 Effect of potential dilutive shares 2,722,942 4,795,024 3,109,404 5,868,039 Weighted average shares outstanding, diluted 170,269,392 169,222,794 170,049,993 169,064,015 Net income per share, basic $ 0.07 $ 0.04 $ 0.12 $ 0.10 Net income per share, diluted $ 0.07 $ 0.04 $ 0.12 $ 0.09 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Options to purchase shares 304,976 383,666 313,462 473,392 Unvested restricted stock units 2,776,295 1,535,412 1,686,442 913,466 Total 3,081,271 1,919,078 1,999,904 1,386,858

Acquisitions and Divestitures

Acquisitions and Divestitures	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions and Divestitures	5. Acquisitions and Divestitures Luminello Acquisition On August 2, 2023, SimplePractice, LLC ("SimplePractice"), a wholly owned subsidiary of the Company, entered into an asset purchase agreement (the “APA”) with Luminello, Inc., a California corporation, engaged in the sale, hosting, distribution and licensing of practice management software ("Luminello"), and certain key holders (collectively, the “Seller”), pursuant to which SimplePractice agreed to purchase certain assets of the Seller for aggregate base cash consideration of up to $ 16.0 million, subject to purchase price adjustments including working capital, indebtedness, and a holdback amount up to an aggregate of $ 3.6 million, consisting of $ 1.2 million to be paid one year after closing and $ 2.4 million to be paid two years after closing, pursuant to the terms of the APA. In addition, Seller may receive contingent payments up to $ 2.0 million, subject to the satisfactory achievement of certain defined performance metrics. In connection with the closing, SimplePractice and the Seller entered into certain intellectual property agreements pursuant to which SimplePractice licensed certain acquired assets back to Seller. In addition, the parties entered into a transition services agreement ("TSA") pursuant to which Seller will continue to operate its platform for a period of time. The acquisition has been accounted for as a business combination and the Company has recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The purchase price allocation is considered preliminary subject to the finalization of the valuation and acquired working capital amounts. The Company may record adjustments to the purchase price allocation as additional information relevant to the acquisition becomes available during the remainder of the measurement period, which will not exceed 12 months from the acquisition date. The following tables summarizes the preliminary purchase price allocation (in thousands): Fair value of consideration transferred: Cash paid, net of cash acquired $ 11,782 Fair value of contingent consideration 1,475 Fair value of future holdback payments 3,300 Total purchase price consideration $ 16,557 Fair value of assets acquired and liabilities assumed: Intangible assets $ 4,400 Goodwill 12,804 Total assets acquired $ 17,204 Deferred revenue ( 647 ) Net assets acquired $ 16,557 The Company engaged a third-party valuation firm to assist in the valuation of intangible assets. The significant intangible assets identified in the purchase price allocation include customer relationships, developed technology, trade names and a favorable contract asset, each of which are amortized on a straight-line basis. Customer relationships represent the underlying relationships with certain customers to provide ongoing services for products sold, and were valued using the income approach, specifically a discounted cash-flow method known as the excess earnings method. Developed technology consists of products that have reached technological feasibility and trade names represent acquired company and product names, and were valued using a relief-from-royalty method. The favorable contract asset relates to the TSA, and was valued using an income approach. The significant assumptions and estimates utilized to value the intangible assets acquired include forecasted revenue and expenses, customer attrition rates, royalty rates, and discount rates. The following table presents the fair values and useful lives of the identifiable intangible assets acquired and risk-adjusted discount rates used in the valuation: Amount Weighted Average Useful Life Risk-Adjusted Discount Rates Used in Valuation (in thousands) (in years) Customer relationships $ 3,600 10 22 % Developed technology 400 1 17 % Trade names 30 1 17 % Other 370 1 17 % Total identifiable intangible assets $ 4,400 In connection with the acquisition of Luminello, goodwill of $ 12.8 million was recognized for the excess purchase price over the fair value of the net assets acquired. The Company believes the goodwill from the acquisition is primarily attributable to product and customer-related synergies. Goodwill from the acquisition of Luminello is included within the Company’s SMB Solutions segment and is deductible for tax purposes. Additionally, the Company utilized a third-party valuation firm to assist in the valuation of the future contingent payments. The Company recognized a contingent consideration liability equal to the acquisition date fair value of expected contingent payments utilizing a Monte Carlo simulation model. The significant assumptions and estimates utilized in the model include forecasted revenue, subscribers, volume, and discount rates. In connection with the acquisition of Luminello, the Company incurred acquisition-related expenses of $ 0.4 million and $ 0.6 million for the three and nine months ended September 30, 2023, respectively, which are primarily recorded within general and administrative expenses in the condensed consolidated statements of operations and comprehensive income. The operating results of Luminello have been included in the Company's SMB Solutions segment and condensed consolidated statements of operations and comprehensive income since the date of acquisition. Revenue, earnings, and pro forma information have not been presented, as the operating results of Luminello are not significant. HealthPay24 Divestiture On August 2, 2023, Invoice Cloud, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Invoice Cloud”), completed the divestiture of IMAGEVISION.NET, LLC, the entity that operates the HealthPay24 solution to Waystar, Inc. for $ 30.0 million, net of cash sold, in an all-cash transaction. The proceeds from this transaction were recorded within the proceeds from sale of business, net of cash sold line on the condensed consolidated statement of cash flows. The divestiture resulted in a gain of $ 10.5 million which was recorded within gain on sale of business on the condensed consolidated statements of operations and comprehensive income. As a result of the transaction, the Company disposed of $ 15.1 million of goodwill and $ 3.5 million of intangible assets, net from the Enterprise Solutions segment. The divestiture was not considered a strategic shift that would have a major effect on the Company’s operations or financial results, and as a result was not reported as discontinued operations.

Leases

Leases	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Leases	6. Leases The Company has operating leases for office spac e to support business operations. The Company's office leases expire at varying dates from 2024 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 1,181 $ 1,184 $ 3,548 $ 3,549 Variable lease cost 74 79 238 224 Total $ 1,255 $ 1,263 $ 3,786 $ 3,773 The weighted average remaining lease term (in years) and discount rate were as follows: September 30, 2023 December 31, 2022 Weighted-average remaining lease term 6.3 6.8 Weighted-average discount rate 2.31 % 2.26 % Maturity of Lease Liabilities The following table presents the future minimum lease payments under the Company's operating leases liabilities as of September 30, 2023 (in thousands): Remainder of 2023 $ 988 2024 5,873 2025 4,615 2026 4,209 2027 3,942 Thereafter 11,069 Total lease payments $ 30,696 Less: imputed interest ( 2,190 ) Lease liabilities $ 28,506 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 $ 0.4 million over the remainder of 2023 and $ 0.9 million thereafter.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. 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): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 276,604 $ — $ — $ 276,604 Liabilities: Contingent consideration liability $ — $ — $ 1,475 $ 1,475 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 225,712 $ — $ — $ 225,712 Liabilities: Contingent consideration liability $ — $ — $ — $ — Money market funds held as of September 30, 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. The Company’s recurring fair value measurements using Level 3 inputs related to the Company’s contingent consideration liability as the significant inputs to the valuation are not observable in the market. The Company determined the fair value of the contingent consideration liability using a Monte Carlo simulation model. Changes in the fair value of the Company’s contingent consideration liabilities were as follows (in thousands): Nine Months Ended September 30, 2023 2022 Beginning balance $ — $ 2,800 Contingent consideration recorded at acquisition 1,475 — Payment of contingent consideration — ( 2,800 ) Change in fair value — — Ending balance $ 1,475 $ —

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangible Assets	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Acquired Intangible Assets	8. Goodwill and Acquired Intangible Assets The carrying amount of goodwill was $ 423.4 million and $ 425.7 million as of September 30, 2023 and December 31, 2022, respectively. Changes in the carrying amount of goodwill by reportable segment through September 30, 2023 were as follows (in thousands): Enterprise Solutions SMB Solutions Total Balance as of December 31, 2022 $ 218,658 $ 207,019 $ 425,677 Goodwill acquired — 12,804 12,804 Goodwill divested ( 15,075 ) — ( 15,075 ) Balance as of September 30, 2023 $ 203,583 $ 219,823 $ 423,406 Acquired intangible assets of the Company consisted of the following (in thousands): September 30, 2023 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 81,643 $ ( 35,393 ) $ 46,250 Developed technology 6.9 41,044 ( 26,641 ) 14,403 Trade names 5.0 5,551 ( 5,050 ) 501 Other 1.0 370 ( 62 ) 308 Total $ 128,608 $ ( 67,146 ) $ 61,462 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 Trade names 5.0 5,824 ( 4,452 ) 1,372 Total $ 131,578 $ ( 59,259 ) $ 72,319 The Company recorded amortization expense of $ 4.0 million for the three month period ended September 30, 2023 and $ 3.9 million for the three month period ended September 30, 2022. The Company recorded amortization expense of $ 11.8 million for the nine month period ended September 30, 2023 and $ 11.7 million for the nine month period ended September 30, 2022. Amortiz at ion of developed technology is recorded within cost of revenue, while amortization of customer relationships, trade names and other is recorded within amortization of intangible assets within operating expenses on the Company’s condensed consolidated statements of operations and comprehensive income. Future estimated amortization expense of the Company’s intangible assets as of September 30, 2023 is expected to be as follows (in thousands): Remainder of 2023 $ 3,974 2024 14,656 2025 13,939 2026 9,177 2027 8,164 Thereafter 11,552 Total $ 61,462

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, 2023 December 31, 2022 Accrued employee compensation and benefits $ 15,735 $ 16,897 Accrued consulting and professional fees 2,991 2,560 Accrued processing fees 3,623 2,287 Accrued channel partner fees 4,789 2,679 Accrued license fees 6,079 3,629 Accrued marketing 2,297 2,169 Accrued tax liabilities 640 1,769 Short-term deferred purchase price 1,144 — Other 6,399 6,433 Total $ 43,697 $ 38,423

Debt

Debt	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Debt	10. Debt As of September 30, 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 revolvi ng 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. On June 30, 2023, the Company amended the 2021 Revolving Credit Facility to transition from a London Interbank Overnight Rate ("LIBOR")-based interest rate to a Secured Overnight Financing Rate ("SOFR")-based interest rate. No change was made to the interest rate margin. As of September 30, 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	9 Months Ended
	Sep. 30, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	11. 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 shar es 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 September 30, 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 September 30, 2023, there were 167,864,066 shares of common stock issued and outstanding.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	12. 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 September 30, 2023, there were 10,287,873 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 2021 ESPP will typically be administered through consecutive six-month offering periods, commencing on June 1 st and December 1 st of each fiscal year. As of September 30, 2023, there were 2,088,097 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 802 $ 397 $ 1,842 $ 660 General and administrative 2,958 1,832 8,009 6,528 Selling and marketing 1,207 869 3,134 1,829 Research and development 1,649 700 3,633 1,095 Total $ 6,616 $ 3,798 $ 16,618 $ 10,112

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company's effective income tax rates were 35.5 % and ( 18.5 )% for the three months ended September 30, 2023 and 2022, respectively. The Company's effective income tax rates were 47.6 % and ( 22.6 )% for the nine months ended September 30, 2023 and 2022, respectively. The effective tax rates for the three and nine months ended September 30, 2023 were higher than the statutory rate of 21.0 % primarily due to the impact of the valuation allowance, partially offset by excess benefits from stock-based compensation. The effective tax rates for the three and nine months ended September 30, 2022 were lower than the statutory rate of 21.0 % primarily due to excess benefits from stock-based compensation.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies Non-Cancellable Commitments As of September 30, 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 September 30, 2023, future minimum payments under other non-cancellable agreements were as follows (in thousands): Remainder of 2023 $ 2,335 2024 3,438 2025 738 2026 184 2027 — Thereafter — Total $ 6,695 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 even t that holders of Class A-1 common shares of EngageSmart, LLC (the Company's predecessor) receive cash distributions in connection with certain 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 September 30, 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 September 30, 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 September 30, 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 estimat e. 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	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Segment and Geographic Information	15. 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, 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 nine months ended September 30, 2023, this segment generated 44 % of total revenue. On August 2, 2023, the Company divested the entity that operated the HealthPay24 solution, which was previously included in the Company's Enterprise Solutions segment. 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 nine months ended September 30, 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 (benefit from) income taxes; depreciation; and amortization of intangible assets, as further adjusted for gain on sale of business, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue Enterprise Solutions $ 42,251 $ 35,866 $ 122,204 $ 99,743 SMB Solutions 55,481 42,930 158,369 120,277 Total revenue 97,732 78,796 280,573 220,020 Adjusted EBITDA Enterprise Solutions 5,860 4,577 19,481 13,338 SMB Solutions 21,217 16,314 59,882 45,239 Total Adjusted EBITDA from reportable segments 27,077 20,891 79,363 58,577 Unallocated corporate expenses ( 8,230 ) ( 7,669 ) ( 23,815 ) ( 22,833 ) Total Adjusted EBITDA 18,847 13,222 55,548 35,744 Reconciling items: Interest income (expense), net 3,555 1,005 9,180 1,127 Amortization of intangible assets ( 3,954 ) ( 3,900 ) ( 11,754 ) ( 11,700 ) Depreciation ( 1,061 ) ( 816 ) ( 3,084 ) ( 2,289 ) Gain on sale of business 10,511 — 10,511 — Transaction-related expenses ( 3,417 ) — ( 5,639 ) 38 Stock-based compensation ( 6,616 ) ( 3,798 ) ( 16,618 ) ( 10,112 ) Income before income taxes 17,865 5,713 38,144 12,808 Provision for (benefit from) income taxes 6,335 ( 1,057 ) 18,152 ( 2,900 ) Net income $ 11,530 $ 6,770 $ 19,992 $ 15,708 The Company’s CODM does not separately evaluate assets by segment, and therefore assets by segment are not presented. Geographic Information For the nine months ended September 30, 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.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events On October 23, 2023, the Company entered into a Merger Agreement with Parent and Merger Sub, providing for the acquisition of the Company, by affiliates of Vista Equity Partners Management, LLC (“Vista”) for $ 23.00 for each share not held by the Company, affiliates of Vista, including Parent and Merger Sub, and affiliates of General Atlantic, the current majority stockholder of the Company. General Atlantic plans to roll over a portion of its shares into the Surviving Corporation (as defined the Merger Agreement). The transaction is expected to close in the first calendar quarter of 2024, subject to the satisfaction of closing conditions contained the Merger Agreement, including the affirmative vote of the holders of a majority of the outstanding shares of common stock held by the Unaffiliated Company Stockholders (as defined the Merger Agreement). Upon completion of the transaction, the Company’s common stock will no longer be publicly listed and the Company will become a privately-held company. Vista intends to finance the transaction with fully committed equity financing that is not subject to any financing condition. The Merger Agreement includes a “go-shop” period expiring at 11:59 p.m., Eastern time, on November 22, 2023 (the “No-Shop Period Start Date”), which allows the Company’s board of directors and its advisors to actively engage in certain activities, including discussions or negotiations with respect to acquisition proposals from third parties, subject to the terms and conditions set forth in the Merger Agreement. The Company’s board of directors will have the right to terminate the Merger Agreement to enter into a superior proposal. The Merger Agreement also contains certain termination rights for Vista, with a termination fee payable by the Company to Vista for up to $ 144.4 million under certain circumstances. In addition, the Company or Vista may terminate the Merger Agreement if the Merger is not consummated by May 23, 2024. The foregoing summary of the Merger Agreement and the Support Agreements (as defined the Merger Agreement) is not complete and is qualified in its entirety by the full text of the Merger Agreement and Support Agreements, which are attached as exhibits to this Quarterly Report on Form 10-Q, and described in more detail in Item 1.01 of the Company’s Form 8-K filed with the SEC on October 23, 2023.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 11,530	$ 4,338	$ 4,124	$ 6,770	$ 6,879	$ 2,059	$ 19,992	$ 15,708

Insider Trading Arrangements

Insider Trading Arrangements	9 Months Ended
	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Trading Arrangement Name/Title Action Date Rule 10b5-1* Non-Rule 10b5‑1** Total Shares to be Sold Expiration Date Robert P. Bennett Terminate (1) August 21, 2023 X (2) January 3, 2024 Chief Executive Officer Cassandra Hudson Terminate (3) September 22, 2023 X (4) November 21, 2024 Chief Financial Officer * Intended to satisfy the affirmative defense of Rule 10b5-1(c) ** Not intended to satisfy the affirmative defense of Rule 10b5-1(c) (1) On August 21, 2023, Mr. Bennett terminated trading arrangements for each of Mr. Bennett, the Robert P. Bennett 2020 Guarantor Retained Trust, and The Bennett Family 2020 Trust that were, in each case, originally adopted on September 9, 2022 . (2) The terms of each plan described in footnote (1) provided for the sale of up to 252,000 shares of common stock. As of the date of termination, Mr. Bennett had sold 168,000 shares of common stock under each plan. (3) On September 22, 2023, Ms. Hudson terminated the trading arrangement originally adopted on December 14, 2022 and subsequently modified on June 14, 2023. (4) The terms of the modified plan described in footnote (3) provided for the sale of up to 387,002 shares of common stock. As of the date of termination, Ms. Hudson had not sold any shares of common stock under the modified plan.
Robert P Bennett [Member]
Trading Arrangements, by Individual
Name	Robert P. Bennett
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 9, 2022
Rule 10b5-1 Arrangement Terminated	true
Termination Date	August 21, 2023
Cassandra Hudson [Member]
Trading Arrangements, by Individual
Name	Cassandra Hudson
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	December 14, 2022
Rule 10b5-1 Arrangement Terminated	true
Termination Date	September 22, 2023
Aggregate Available	387,002
Mr. Bennett [Member] | Robert P Bennett [Member]
Trading Arrangements, by Individual
Aggregate Available	252,000
The Robert P. Bennett 2020 Guarantor Retained Trust [Member] | Robert P Bennett [Member]
Trading Arrangements, by Individual
Aggregate Available	252,000
The Bennett Family 2020 Trust [Member] | Robert P Bennett [Member]
Trading Arrangements, by Individual
Aggregate Available	252,000

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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 three 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 nine months ended September 30, 2023 and 2022, no customer accounted for 10 % or more of revenue. As of September 30, 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)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Enterprise Solutions Transaction and usage-based $ 39,783 $ 32,620 $ 113,337 $ 90,928 Subscription 2,123 2,280 7,354 6,517 Other 345 966 1,513 2,298 Total Enterprise Solutions revenue 42,251 35,866 122,204 99,743 SMB Solutions Transaction and usage-based 15,927 11,349 46,657 33,613 Subscription 39,289 31,216 110,821 85,493 Other 265 365 891 1,171 Total SMB Solutions revenue 55,481 42,930 158,369 120,277 Total revenue $ 97,732 $ 78,796 $ 280,573 $ 220,020

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except share and per share amounts) Numerator: Net income $ 11,530 $ 6,770 $ 19,992 $ 15,708 Denominator: Weighted average shares outstanding, basic 167,546,450 164,427,770 166,940,589 163,195,976 Effect of potential dilutive shares 2,722,942 4,795,024 3,109,404 5,868,039 Weighted average shares outstanding, diluted 170,269,392 169,222,794 170,049,993 169,064,015 Net income per share, basic $ 0.07 $ 0.04 $ 0.12 $ 0.10 Net income per share, diluted $ 0.07 $ 0.04 $ 0.12 $ 0.09
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Options to purchase shares 304,976 383,666 313,462 473,392 Unvested restricted stock units 2,776,295 1,535,412 1,686,442 913,466 Total 3,081,271 1,919,078 1,999,904 1,386,858

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Summary of Preliminary Purchase Price Allocation	The following tables summarizes the preliminary purchase price allocation (in thousands): Fair value of consideration transferred: Cash paid, net of cash acquired $ 11,782 Fair value of contingent consideration 1,475 Fair value of future holdback payments 3,300 Total purchase price consideration $ 16,557 Fair value of assets acquired and liabilities assumed: Intangible assets $ 4,400 Goodwill 12,804 Total assets acquired $ 17,204 Deferred revenue ( 647 ) Net assets acquired $ 16,557
Schedule of Fair Value and Useful Lives of Intangible Assets Acquired and Risk-Adjusted Discount Rates used in Valuation	The following table presents the fair values and useful lives of the identifiable intangible assets acquired and risk-adjusted discount rates used in the valuation: Amount Weighted Average Useful Life Risk-Adjusted Discount Rates Used in Valuation (in thousands) (in years) Customer relationships $ 3,600 10 22 % Developed technology 400 1 17 % Trade names 30 1 17 % Other 370 1 17 % Total identifiable intangible assets $ 4,400

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 1,181 $ 1,184 $ 3,548 $ 3,549 Variable lease cost 74 79 238 224 Total $ 1,255 $ 1,263 $ 3,786 $ 3,773
Schedule of Weighted Average Remaining Lease Term and Discount Rate	The weighted average remaining lease term (in years) and discount rate were as follows: September 30, 2023 December 31, 2022 Weighted-average remaining lease term 6.3 6.8 Weighted-average discount rate 2.31 % 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 September 30, 2023 (in thousands): Remainder of 2023 $ 988 2024 5,873 2025 4,615 2026 4,209 2027 3,942 Thereafter 11,069 Total lease payments $ 30,696 Less: imputed interest ( 2,190 ) Lease liabilities $ 28,506

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 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): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 276,604 $ — $ — $ 276,604 Liabilities: Contingent consideration liability $ — $ — $ 1,475 $ 1,475 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 225,712 $ — $ — $ 225,712 Liabilities: Contingent consideration liability $ — $ — $ — $ —
Changes in Fair Value of Contingent Consideration Liabilities	Changes in the fair value of the Company’s contingent consideration liabilities were as follows (in thousands): Nine Months Ended September 30, 2023 2022 Beginning balance $ — $ 2,800 Contingent consideration recorded at acquisition 1,475 — Payment of contingent consideration — ( 2,800 ) Change in fair value — — Ending balance $ 1,475 $ —

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2023
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 September 30, 2023 were as follows (in thousands): Enterprise Solutions SMB Solutions Total Balance as of December 31, 2022 $ 218,658 $ 207,019 $ 425,677 Goodwill acquired — 12,804 12,804 Goodwill divested ( 15,075 ) — ( 15,075 ) Balance as of September 30, 2023 $ 203,583 $ 219,823 $ 423,406
Schedule of Acquired Intangible Assets	Acquired intangible assets of the Company consisted of the following (in thousands): September 30, 2023 Weighted Average Gross Carrying Value Accumulated Amortization Net Carrying Value (in years) Customer relationships 10.0 $ 81,643 $ ( 35,393 ) $ 46,250 Developed technology 6.9 41,044 ( 26,641 ) 14,403 Trade names 5.0 5,551 ( 5,050 ) 501 Other 1.0 370 ( 62 ) 308 Total $ 128,608 $ ( 67,146 ) $ 61,462 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 Trade names 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 September 30, 2023 is expected to be as follows (in thousands): Remainder of 2023 $ 3,974 2024 14,656 2025 13,939 2026 9,177 2027 8,164 Thereafter 11,552 Total $ 61,462

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 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): September 30, 2023 December 31, 2022 Accrued employee compensation and benefits $ 15,735 $ 16,897 Accrued consulting and professional fees 2,991 2,560 Accrued processing fees 3,623 2,287 Accrued channel partner fees 4,789 2,679 Accrued license fees 6,079 3,629 Accrued marketing 2,297 2,169 Accrued tax liabilities 640 1,769 Short-term deferred purchase price 1,144 — Other 6,399 6,433 Total $ 43,697 $ 38,423

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 802 $ 397 $ 1,842 $ 660 General and administrative 2,958 1,832 8,009 6,528 Selling and marketing 1,207 869 3,134 1,829 Research and development 1,649 700 3,633 1,095 Total $ 6,616 $ 3,798 $ 16,618 $ 10,112

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Contractual Obligation Future Minimum Payments Under Other Non-Cancellable Agreements	As of September 30, 2023, future minimum payments under other non-cancellable agreements were as follows (in thousands): Remainder of 2023 $ 2,335 2024 3,438 2025 738 2026 184 2027 — Thereafter — Total $ 6,695

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue Enterprise Solutions $ 42,251 $ 35,866 $ 122,204 $ 99,743 SMB Solutions 55,481 42,930 158,369 120,277 Total revenue 97,732 78,796 280,573 220,020 Adjusted EBITDA Enterprise Solutions 5,860 4,577 19,481 13,338 SMB Solutions 21,217 16,314 59,882 45,239 Total Adjusted EBITDA from reportable segments 27,077 20,891 79,363 58,577 Unallocated corporate expenses ( 8,230 ) ( 7,669 ) ( 23,815 ) ( 22,833 ) Total Adjusted EBITDA 18,847 13,222 55,548 35,744 Reconciling items: Interest income (expense), net 3,555 1,005 9,180 1,127 Amortization of intangible assets ( 3,954 ) ( 3,900 ) ( 11,754 ) ( 11,700 ) Depreciation ( 1,061 ) ( 816 ) ( 3,084 ) ( 2,289 ) Gain on sale of business 10,511 — 10,511 — Transaction-related expenses ( 3,417 ) — ( 5,639 ) 38 Stock-based compensation ( 6,616 ) ( 3,798 ) ( 16,618 ) ( 10,112 ) Income before income taxes 17,865 5,713 38,144 12,808 Provision for (benefit from) income taxes 6,335 ( 1,057 ) 18,152 ( 2,900 ) Net income $ 11,530 $ 6,770 $ 19,992 $ 15,708

Nature of Business and Basis _2

Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($)		1 Months Ended	9 Months Ended
	Feb. 28, 2023	Mar. 31, 2023	Sep. 30, 2023
Secondary Offering | General and Administrative Expense
Subsidiary Sale Of Stock [Line Items]
Offering stock incurred cost			$ 1,600,000
Secondary Offering | Common Stock
Subsidiary Sale Of Stock [Line Items]
Share price per share	$ 19
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, shares issued	1,200,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2023 Customer FinancialInstitutions	Sep. 30, 2022 Customer	Dec. 31, 2022 Customer
Concentration Risk [Line Items]
Primary accounts maintained with number of major financial institutions | FinancialInstitutions	3
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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 97,732	$ 78,796	$ 280,573	$ 220,020
Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	42,251	35,866	122,204	99,743
SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	55,481	42,930	158,369	120,277
Transaction and Usage-Based | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	39,783	32,620	113,337	90,928
Transaction and Usage-Based | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	15,927	11,349	46,657	33,613
Subscription | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	2,123	2,280	7,354	6,517
Subscription | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	39,289	31,216	110,821	85,493
Other | Enterprise Solutions
Disaggregation of Revenue [Line Items]
Revenue	345	966	1,513	2,298
Other | SMB Solutions
Disaggregation of Revenue [Line Items]
Revenue	$ 265	$ 365	$ 891	$ 1,171

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Contract assets	$ 0		$ 0
Deferred revenue current	9,100,000		8,200,000
Deferred revenue, non-current	300,000		$ 300,000
Deferred revenue, revenue recognized	$ 7,900,000	$ 6,500,000

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						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 11,530	$ 4,338	$ 4,124	$ 6,770	$ 6,879	$ 2,059	$ 19,992	$ 15,708
Denominator:
Weighted average shares outstanding, basic	167,546,450			164,427,770			166,940,589	163,195,976
Effect of potential dilutive shares	2,722,942			4,795,024			3,109,404	5,868,039
Weighted average shares outstanding, diluted	170,269,392			169,222,794			170,049,993	169,064,015
Net income per share, basic	$ 0.07			$ 0.04			$ 0.12	$ 0.1
Net income per share, diluted	$ 0.07			$ 0.04			$ 0.12	$ 0.09

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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares excluded from computation of diluted net income per share	3,081,271	1,919,078	1,999,904	1,386,858
Employee Stock Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares excluded from computation of diluted net income per share	304,976	383,666	313,462	473,392
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	2,776,295	1,535,412	1,686,442	913,466

Acquisitions and Divestitures -

Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Aug. 02, 2023	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 423,406	$ 423,406	$ 425,677
Proceeds from sale of business, net of cash sold			30,027
Gain from divestiture of business		10,511	10,511
Goodwill disposed off			15,075
Enterprise Solutions
Business Acquisition [Line Items]
Goodwill		203,583	203,583	$ 218,658
Goodwill disposed off			15,075
Invoice Cloud, Inc. | Disposal Group, Disposed of by Sale, Not Discontinued Operations | IMAGEVISION.NET, LLC
Business Acquisition [Line Items]
Proceeds from sale of business, net of cash sold	$ 30,000
Gain from divestiture of business	10,500
Invoice Cloud, Inc. | Disposal Group, Disposed of by Sale, Not Discontinued Operations | IMAGEVISION.NET, LLC | Enterprise Solutions
Business Acquisition [Line Items]
Goodwill disposed off	15,100
Intangible assets, disposals	$ 3,500
Maximum
Business Acquisition [Line Items]
Business combinations measurement period	12 months
Luminello, Inc.
Business Acquisition [Line Items]
Goodwill	$ 12,804
Acquisition-related expenses		$ 400	$ 600
APA | Luminello, Inc.
Business Acquisition [Line Items]
Business acquisition consideration transferred hold back amount to be paid in one year	1,200
Business acquisition consderation transferred hold back amount to be paid in two year	2,400
APA | Luminello, Inc. | Maximum
Business Acquisition [Line Items]
Aggregate purchase price	16,000
Holdback amount	3,600
Contingent payments	$ 2,000

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Summary of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands		9 Months Ended
	Aug. 02, 2023	Sep. 30, 2023	Dec. 31, 2022
Fair value of consideration transferred:
Cash paid, net of cash acquired		$ 11,782
Fair value of assets acquired and liabilities assumed:
Goodwill		$ 423,406	$ 425,677
Luminello, Inc.
Fair value of consideration transferred:
Cash paid, net of cash acquired	$ 11,782
Fair value of contingent consideration	1,475
Fair value of future holdback payments	3,300
Total purchase price consideration	16,557
Fair value of assets acquired and liabilities assumed:
Intangible assets	4,400
Goodwill	12,804
Total assets acquired	17,204
Deferred revenue	(647)
Net assets acquired	$ 16,557

Acquisitions and Divestitures_3

Acquisitions and Divestitures - Schedule of Fair Value and Useful Lives of Intangible Assets Acquired and Risk-Adjusted Discount Rates used in Valuation (Details) - Luminello Incorporated [Member] $ in Thousands	Aug. 02, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 4,400
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 3,600
Weighted Average Useful Life (in years)	10 years
Risk-Adjusted Discount Rates Used in Valuation	22%
Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 400
Weighted Average Useful Life (in years)	1 year
Risk-Adjusted Discount Rates Used in Valuation	17%
Trade Names
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 30
Weighted Average Useful Life (in years)	1 year
Risk-Adjusted Discount Rates Used in Valuation	17%
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 370
Weighted Average Useful Life (in years)	1 year
Risk-Adjusted Discount Rates Used in Valuation	17%

Leases - Schedule of Components

Leases - Schedule of Components of Operating Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease cost	$ 1,181	$ 1,184	$ 3,548	$ 3,549
Variable lease cost	74	79	238	224
Total	$ 1,255	$ 1,263	$ 3,786	$ 3,773

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details)	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term	6 years 3 months 18 days	6 years 9 months 18 days
Weighted-average discount rate	2.31%	2.26%

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Leases [Abstract]
Remainder of 2023	$ 988
2024	5,873
2025	4,615
2026	4,209
2027	3,942
Thereafter	11,069
Total lease payments	30,696
Less: imputed interest	(2,190)
Lease liabilities	$ 28,506

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Future sublease receipts, Remainder of 2023	$ 0.4
Future sublease receipts, Thereafter	$ 0.9
Maximum
Lessee, Lease, Description [Line Items]
Operating lease expiration, year	2030
Minimum
Lessee, Lease, Description [Line Items]
Operating lease expiration, year	2024

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Liabilities:
Contingent consideration liability, net of noncurrent portion	$ 1,475
Recurring Basis
Liabilities:
Contingent consideration liability, net of noncurrent portion	1,475
Recurring Basis | Level 3
Liabilities:
Contingent consideration liability, net of noncurrent portion	1,475
Recurring Basis | Money Market Funds
Assets:
Cash equivalents - money market funds	276,604	$ 225,712
Recurring Basis | Money Market Funds | Level 1
Assets:
Cash equivalents - money market funds	$ 276,604	$ 225,712

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Fair Value of Contingent Consideration Liabilities (Details) - Contingent Consideration Liability - Level 3 - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 0	$ 2,800
Contingent consideration recorded at acquisition	1,475	0
Payment of contingent consideration	0	(2,800)
Change in fair value	0	0
Ending Balance	$ 1,475	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 423,406		$ 423,406		$ 425,677
Amortization expense	$ 4,000	$ 3,900	$ 11,800	$ 11,700

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill by Reportable Segment (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Line Items]
Beginning balance	$ 425,677
Goodwill acquired	12,804
Goodwill divested	(15,075)
Ending balance	423,406
Enterprise Solutions
Goodwill [Line Items]
Beginning balance	218,658
Goodwill divested	(15,075)
Ending balance	203,583
SMB Solutions
Goodwill [Line Items]
Beginning balance	207,019
Goodwill acquired	12,804
Ending balance	$ 219,823

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Gross Carrying Value	$ 128,608	$ 131,578
Accumulated Amortization	(67,146)	(59,259)
Net Carrying Value	$ 61,462	$ 72,319
Customer Relationships
Weighted Average Useful Life	10 years	10 years
Gross Carrying Value	$ 81,643	$ 82,841
Accumulated Amortization	(35,393)	(31,344)
Net Carrying Value	$ 46,250	$ 51,497
Developed Technology
Weighted Average Useful Life	6 years 10 months 24 days	7 years
Gross Carrying Value	$ 41,044	$ 42,913
Accumulated Amortization	(26,641)	(23,463)
Net Carrying Value	$ 14,403	$ 19,450
Trade Names
Weighted Average Useful Life	5 years	5 years
Gross Carrying Value	$ 5,551	$ 5,824
Accumulated Amortization	(5,050)	(4,452)
Net Carrying Value	$ 501	$ 1,372
Other
Weighted Average Useful Life	1 year
Gross Carrying Value	$ 370
Accumulated Amortization	(62)
Net Carrying Value	$ 308

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangible Assets - Schedule of Future Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 3,974
2024	14,656
2025	13,939
2026	9,177
2027	8,164
Thereafter	11,552
Net Carrying Value	$ 61,462	$ 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	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued employee compensation and benefits	$ 15,735	$ 16,897
Accrued consulting and professional fees	2,991	2,560
Accrued processing fees	3,623	2,287
Accrued channel partner fees	4,789	2,679
Accrued license fees	6,079	3,629
Accrued marketing	2,297	2,169
Accrued tax liabilities	640	1,769
Short-term deferred purchase price	1,144
Other	6,399	6,433
Total	$ 43,697	$ 38,423

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Sep. 27, 2021	Sep. 30, 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	Sep. 30, 2023	Dec. 31, 2022
Class of Stock Disclosures [Abstract]
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	167,864,066	166,081,011
Common stock, shares, outstanding	167,864,066	166,081,011

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - shares	1 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2023
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		2,088,097
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		10,287,873

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	$ 6,616	$ 3,798	$ 16,618	$ 10,112
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	802	397	1,842	660
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	2,958	1,832	8,009	6,528
Selling and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	1,207	869	3,134	1,829
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock based compensation expense	$ 1,649	$ 700	$ 3,633	$ 1,095

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	35.50%	(18.50%)	47.60%	(22.60%)
Statutory rate	21%	21%	21%	21%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 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	Sep. 30, 2023 USD ($)
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
Remainder of 2023	$ 2,335
2024	3,438
2025	738
2026	184
2027	0
Thereafter	0
Total	$ 6,695

Segment and Geographic Inform_3

Segment and Geographic Information - Additional Information (Details) - Segment	9 Months Ended
	Sep. 30, 2023	Sep. 30, 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						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue
Total revenue	$ 97,732			$ 78,796			$ 280,573	$ 220,020
Adjusted EBITDA
Unallocated corporate expenses	(8,230)			(7,669)			(23,815)	(22,833)
Total Adjusted EBITDA	18,847			13,222			55,548	35,744
Amortization of intangible assets	(4,000)			(3,900)			(11,800)	(11,700)
Gain on sale of business	10,511						10,511
Stock-based compensation	(6,616)			(3,798)			(16,618)	(10,112)
Income before income taxes	17,865			5,713			38,144	12,808
Provision for (benefit from) income taxes	6,335			(1,057)			18,152	(2,900)
Net income and comprehensive income	11,530	$ 4,338	$ 4,124	6,770	$ 6,879	$ 2,059	19,992	15,708
Reportable Segment
Revenue
Total revenue	97,732			78,796			280,573	220,020
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	27,077			20,891			79,363	58,577
Segment Reconciling Items
Adjusted EBITDA
Interest income (expense), net	3,555			1,005			9,180	1,127
Amortization of intangible assets	(3,954)			(3,900)			(11,754)	(11,700)
Depreciation	(1,061)			(816)			(3,084)	(2,289)
Gain on sale of business	10,511			0			10,511	0
Transaction-related expenses	(3,417)			0			(5,639)	38
Stock-based compensation	(6,616)			(3,798)			(16,618)	(10,112)
Enterprise Solutions
Revenue
Total revenue	42,251			35,866			122,204	99,743
Enterprise Solutions | Reportable Segment
Revenue
Total revenue	42,251			35,866			122,204	99,743
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	5,860			4,577			19,481	13,338
SMB Solutions
Revenue
Total revenue	55,481			42,930			158,369	120,277
SMB Solutions | Reportable Segment
Revenue
Total revenue	55,481			42,930			158,369	120,277
Adjusted EBITDA
Total Adjusted EBITDA from reportable segments	$ 21,217			$ 16,314			$ 59,882	$ 45,239

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Event - Merger agreement $ / shares in Units, $ in Millions	Oct. 23, 2023 USD ($) $ / shares
Subsequent Event [Line Items]
Business acquisition, share price | $ / shares	$ 23
Maximum
Subsequent Event [Line Items]
Termination fee payable | $	$ 144.4