Property and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following for the periods presented (in thousands):


	March 31, 2023		December 31, 2022
Office equipment	$	5,189	$	5,146
Office furniture	6,404		5,763
Leasehold improvements	2,622		2,615
Fixed assets not placed in service	—		318
Capitalized internal-use software	5,162		4,828

Payment terminals	2,631		2,389
Property and equipment, gross	22,008		21,059
Less accumulated depreciation and amortization	(11,387)		(10,286)
Property and equipment, net	$	10,621	$	10,773

Depreciation and amortization expense on property and equipment (excluding amortization on operating ROU assets) was $3.0 million and $3.4 million for the three months ended March 31, 2023 and 2022, respectively. Of this expense, $1.9 million and $2.4 million for the three months ended March 31, 2023 and 2022, respectively, was related to phone hardware finance ROU assets (see also Note 7) and data center equipment which has been included in cost of revenue in the statements of operations. Note that these finance ROU assets were reported as “phone hardware” prior to January 1, 2022. Capitalized internal-use software amortization expense was $0.3 million and $0.2 million for the three months ended March 31, 2023 and 2022, respectively, which has been included in the cost of revenue in the statements of operations. Capitalized implementation amortization expense was zero and $0.1 million for the March 31, 2023 and 2022, respectively, which has been included in operating expense in the statements of operations.