Annual report [Section 13 and 15(d), not S-K Item 405]

Revenue

v3.25.0.1
Revenue
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts With Customers for all periods presented. See Note 2 for a description of the Company’s revenue recognition accounting policy.
Contract Balances
For the years ended December 31, 2024, 2023 and 2022, the Company recognized revenue of $38.9 million, $34.1 million and $29.5 million, respectively, that was included in the corresponding deferred revenue balance at the beginning of each respective period.
Deferred Contract Costs
The following table summarizes the activity of deferred contract costs (in thousands):
Year Ended December 31,
2024 2023 2022
Beginning balance $ 19,169  $ 18,027  $ 16,804 
Capitalization of contract costs 15,304  13,313  12,343 
Amortization of deferred contract costs (13,418) (12,171) (11,120)
Ending balance $ 21,055  $ 19,169  $ 18,027 
Performance Obligations
Performance obligations promised in a contract are based on the services and products that will be transferred to the customer. They must be capable of being distinct and separately identifiable from other promises in the contract. The Company’s performance obligations consist of the following:
•Software services;
•Cloud-based phone services;
•Payment services;
•Onboarding and installation services (pre-configured applications and phone hardware); and
•Phone hardware.
Disaggregation of Revenues
Revenue has been disaggregated into recurring and non-recurring categories to identify revenue and costs of revenue that are one-time in nature from those that are term-based and renewable.
The table below outlines revenue for our recurring subscription (software and phone services) and payment processing services, as well as for our onboarding services, and phone hardware (in thousands) for the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
2024 2023 2022
Subscription and payment processing $ 196,106  $ 162,715  $ 136,592 
Onboarding 3,547  3,232  1,288 
Hardware (embedded lease) 4,661  4,521  4,237 
Total revenue $ 204,314  $ 170,468  $ 142,117