Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.22.4
Property and Equipment
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and EquipmentProperty and equipment consisted of the following (in thousands):
December 31, 2022 December 31, 2021
Office equipment $ 5,146  $ 4,729 
Office furniture 5,763  5,588 
Leasehold improvements 2,615  2,496 
Fixed assets not placed in service 318  118 
Capitalized internal-use software 4,828  3,533 
Phone hardware —  26,034 
Payment terminals 2,389  1,581 
Property and equipment, gross 21,059  44,079 
Less accumulated depreciation and amortization (10,286) (19,577)
Property and equipment, net $ 10,773  $ 24,502 
Depreciation and amortization expense on property and equipment (excluding amortization on operating ROU assets) was $13.0 million, $12.1 million, and $9.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Of this expense, $9.0 million, $9.1 million and $7.3 million was related to phone hardware finance ROU assets (see also Note 7) and data center equipment, and has been included in cost of revenue in the consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020, respectively. Note that these finance ROU assets were reported as “phone hardware” prior to January 1, 2022. Capitalized internal-use software amortization expense was $1.0 million, $0.8 million, and $0.5 million for the years ended December 31, 2022, 2021 and 2020, respectively, and has been included in the cost of revenue in the consolidated statements of operations. Capitalized software implementation amortization expense was $0.2 million, $0.2 million, and zero for the years ended December 31, 2022, 2021 and 2020, respectively, and has been included in operating expense in the consolidated statements of operations. The net carrying value of capitalized internal-use software was $2.4 million and $2.3 million as of December 31, 2022 and 2021, respectively.