Goodwill and Long-Lived Assets (Tables)

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Property and Equipment

Property and Equipment. Property and equipment as of December 31, 2024 and 2023 consisted of the following (in thousands, except years):

	Useful Lives (Years)		December 31, 2024			December 31, 2023
Computer equipment	3-6		$	94,574		$	89,946
Leasehold improvements		10		25,415			27,134
Operating equipment	3-8			67,651			67,825
Furniture and fixtures		8		2,469			2,456
				190,109			187,361
Less – accumulated depreciation				(133,514	)		(121,816	)
Property and equipment, net			$	56,595		$	65,545

Rollforward of Goodwill

Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill for 2023 and 2024 is as follows (in thousands):

January 1, 2023 balance	$	304,036
Adjustments related to prior acquisitions		(20	)
Impairment charge related to Keydok, LLC		(1,118	)
Effects of changes in foreign currency exchange rates		5,698
December 31, 2023 balance		308,596
Goodwill acquired during the period		10,662
Effects of changes in foreign currency exchange rates		(3,217	)
December 31, 2024, balance	$	316,041

The 2023 impairment charge relates to the decision to dissolve the Keydok, LLC (“Keydok”) business, discussed in Note 8, and the 2024 goodwill acquired during the period relates to the acquisitions, discussed in Note 7.

Summary of Carrying Value of Other Intangible Assets

As of December 31, 2024 and 2023, the carrying values of our acquired customer contracts were as follows (in thousands):

	December 31, 2024							December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Acquired customer contracts (1)	$	172,656	$	(133,279	)	$	39,377	$	162,348	$	(126,469	)	$	35,879

Software. As of December 31, 2024 and 2023, the carrying values of our software assets were as follows (in thousands):

	December 31, 2024							December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Acquired software (2)	$	84,283	$	(79,843	)	$	4,440	$	84,031	$	(77,520	)	$	6,511
Internal use software (3)		90,292		(74,805	)		15,487		87,794		(80,081	)		7,713
Total software	$	174,575	$	(154,648	)	$	19,927	$	171,825	$	(157,601	)	$	14,224

Summary of Aggregate Amortization Related to Intangible Assets

The aggregate amortization related to acquired customer contracts included in our operations for 2024, 2023, and 2022 was as follows (in thousands):

	2024		2023		2022
Acquired customer contracts amortization (1)	$	11,346	$	9,775	$	11,605

(1)Acquired customer contracts represent assets acquired in our business acquisitions, to include the 2024 acquisitions discussed in Note 7. Acquired customer contracts are amortized over their estimated useful lives ranging from five to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements.

The aggregate amortization related to software included in our operations for 2024, 2023, and 2022 was as follows (in thousands):

	2024		2023		2022
Acquired software amortization (2)	$	2,668	$	2,410	$	2,750
Internal use software amortization (3)		11,671		13,624		14,140
Total software amortization	$	14,339	$	16,034	$	16,890

(2)Acquired software represents software and similar intellectual property rights acquired in our business acquisitions, which are amortized over their estimated useful lives ranging from two to eight years. The amortization of acquired software is reflected as a cost of revenue in our Income Statements.

(3)Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years.

Summary of Carrying Values of Customer Contract Cost Assets

As of December 31, 2024 and 2023, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands):

	December 31, 2024							December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer contract incentives (4)	$	5,035	$	(3,183	)	$	1,852	$	7,027	$	(4,935	)	$	2,092
Capitalized costs (5)		82,363		(33,836	)		48,527		71,976		(29,027	)		42,949
Capitalized commission fees (6)		17,998		(7,568	)		10,430		17,512		(8,132	)		9,380
Total customer contract costs	$	105,396	$	(44,587	)	$	60,809	$	96,515	$	(42,094	)	$	54,421

Summary of Aggregate Amortization Related to Customer Contract Costs

The aggregate amortization related to our customer contract costs included in our operations for 2024, 2023, and 2022 was as follows (in thousands):

	2024		2023		2022
Customer contract incentives amortization (4)	$	748	$	1,136	$	792
Capitalized costs amortization (5)		17,216		15,422		15,918
Capitalized commission fees amortization (6)		3,298		3,733		3,028
Total customer contract costs amortization	$	21,262	$	20,291	$	19,738

(4)Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer accounts on, our solutions. Customer contract incentives are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2024, have termination dates that range from 2025 to 2030. The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements.

(5)Capitalized costs are related to: (i) customer conversion/set-up activities; and (ii) direct material costs to fulfill long-term revenue management solutions and managed services arrangements. These costs are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2024, range from 2025 to 2036, and are included in cost of revenue in our Income Statements.

(6)Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2024, range from 2025 to 2031, and are included in Selling, General, and Administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less.