Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.23.1
Property and Equipment
 3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
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.