Revenue

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue

4. REvenue

Disaggregation of Revenue—The Company provides disaggregation of revenue based on type of service as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The following table summarizes revenue by type of service for the three and six months ended June 30, 2025 and 2024 (in thousands):

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Software subscriptions	$	250,579	$	223,014	$	493,115	$	441,083
Other		9,872		9,604		18,901		18,772
Total revenues	$	260,451	$	232,618	$	512,016	$	459,855

Transaction Price Allocated to the Remaining Performance Obligations—Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of June 30, 2025, approximately $1,749 million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $738 million during the following twelve months, and approximately $1,011 million thereafter. The estimated revenues do not include unexercised contract renewals. The remaining performance obligations exclude future transaction revenue where revenue is recognized as the services are rendered and in the amount to which the Company has the right to invoice.

Deferred Revenue—Revenue recognized for the three months ended June 30, 2025 from amounts in deferred revenue as of March 31, 2025 was $54.0 million. Revenue recognized for the three months ended June 30, 2024 from amounts in deferred revenue as of March 31, 2024 was $41.3 million. Revenue recognized for the six months ended June 30, 2025 from amounts in deferred revenue as of December 31, 2024 was $43.0 million. Revenue recognized for the six months ended June 30, 2024 from amounts in deferred revenue as of December 31, 2023 was $39.9 million.

Contract Assets and Liabilities—The opening and closing balances of the Company’s receivables, contract assets and contract liabilities from contracts with customers are as follows (in thousands):

	June 30,		December 31,
	2025		2024
Accounts receivables—Net of allowances	$	132,450	$	106,578
Deferred contract costs		23,158		22,373
Long-term deferred contract costs		20,281		18,692
Other assets (accounts receivable, non-current)		22,794		16,946
Deferred revenues		71,214		44,915
Other liabilities (deferred revenues, non-current)		1,078		1,415

A summary of the activity impacting deferred revenue balances during the three and six months ended June 30, 2025 and 2024 is presented below (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024
Balance at beginning of period	$	69,172		$	47,560		$	46,330		$	44,940
Revenue recognized1		(176,485	)		(117,797	)		(327,989	)		(233,209	)
Additional amounts deferred1		179,605			118,338			353,951			236,370
Balance at end of period	$	72,292		$	48,101		$	72,292		$	48,101
Classified as:
Current	$	71,214		$	45,988		$	71,214		$	45,988
Non-current		1,078			2,113			1,078			2,113
Total deferred revenue	$	72,292		$	48,101		$	72,292		$	48,101

1 Amounts include total revenue deferred and recognized during each respective period.

The additional amount deferred during the six months ended June 30, 2025 includes $21.5 million related to the deferred revenue recorded at the time of the acquisition of EvolutionIQ.

A summary of the activity impacting the deferred contract costs during the three and six months ended June 30, 2025 and 2024 is presented below (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024
Balance at beginning of period	$	42,179		$	40,153		$	41,065		$	40,202
Costs amortized		(6,019	)		(5,322	)		(11,683	)		(10,571	)
Additional amounts deferred		7,279			6,262			14,057			11,462
Balance at end of period	$	43,439		$	41,093		$	43,439		$	41,093
Classified as:
Current	$	23,158		$	19,427		$	23,158		$	19,427
Non-current		20,281			21,666			20,281			21,666
Total deferred contract costs	$	43,439		$	41,093		$	43,439		$	41,093