Concentration Risks and Significant Customers

6 Months Ended

Jun. 30, 2024

Risks and Uncertainties [Abstract]

Concentration Risks and Significant Customers

Concentration Risks and Significant Customers

Financial instruments that potentially expose the Company to concentration of credit risk consist of cash and cash equivalents, short-term investments, and accounts receivable. Cash on deposit with financial institutions may exceed federally insured limits.

As of June 30, 2024 and December 31, 2023, short-term investments were $228.8 million and $268.7 million, respectively, and there was no concentration of securities of the same issuer with an aggregate fair value greater than 5% of the total balance, except for U.S. Treasuries, which amounted to $215.4 million, or 94% of the short-term investments and $255.2 million, or 95% of the short-term investments, respectively. As of June 30, 2024 and December 31, 2023, all debt securities within the Company's portfolio are investment grade.

A significant portion of the Company's payment transactions are settled through one Issuing Bank, Sutton Bank. For the three months ended June 30, 2024 and 2023, 72% and 77% of Total Processing Volume, which is the total dollar amount of payments processed through the Company’s platform, net of returns and chargebacks, was settled through Sutton Bank, respectively. For the six months ended June 30, 2024 and 2023, 73% and 78% of Total Processing Volume was settled through Sutton Bank, respectively.

A significant portion of the Company's revenue is derived from one customer. For the three months ended June 30, 2024 and 2023, this customer accounted for 47% and 78% of the Company’s net revenue, respectively. For the six months ended June 30, 2024 and 2023, this customer accounted for 48% and 77% of the Company’s net revenue, respectively. As of June 30, 2024, two customers accounted for 21% and 10% of the Company’s accounts receivable balance.