Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 13, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | CSG SYSTEMS INTERNATIONAL, INC. | ||
Entity Central Index Key | 0001005757 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CSGS | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,169,844,848 | ||
Entity Common Stock, Shares Outstanding | 29,443,284 | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity File Number | 0-27512 | ||
Entity Tax Identification Number | 47-0783182 | ||
Entity Address, Address Line One | 169 Inverness Dr W | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Englewood | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80112 | ||
City Area Code | (303) | ||
Local Phone Number | 200-2000 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement for its 2024 Annual Meeting of Stockholders to be filed on or prior to April 29, 2024, are incorporated by reference into Part III of this Report. | ||
Auditor Firm ID | 185 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Omaha, Nebraska |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 186,264 | $ 150,365 | |
Short-term investments | 0 | 71 | |
Total cash, cash equivalents and short-term investments | 186,264 | 150,436 | |
Settlement and merchant reserve assets | 274,699 | 238,653 | |
Trade accounts receivable: | |||
Billed, net of allowance of $5,432 and $5,528 | 267,680 | 274,189 | |
Unbilled | 82,163 | 52,830 | |
Income taxes receivable | 1,345 | 1,270 | |
Other current assets | 50,075 | 48,577 | |
Total current assets | 862,226 | 765,955 | |
Non-current assets: | |||
Property and equipment, net of depreciation of $121,816 and $105,466 | 65,545 | 71,787 | |
Operating lease right-of-use assets | 34,283 | 49,687 | |
Goodwill | 308,596 | 304,036 | |
Customer contract costs, net of amortization of $42,094 and $30,601 | 54,421 | 54,735 | |
Deferred income taxes | 57,855 | 26,206 | |
Other assets | 10,017 | 7,956 | |
Total non-current assets | 580,820 | 582,598 | |
Total assets | 1,443,046 | 1,348,553 | |
Current liabilities: | |||
Current portion of long-term debt | 7,500 | 37,500 | |
Operating lease liabilities | 15,946 | 21,012 | |
Customer deposits | 41,035 | 40,472 | |
Trade accounts payable | 46,406 | 47,720 | |
Accrued employee compensation | 84,380 | 68,321 | |
Settlement and merchant reserve liabilities | 273,817 | 237,810 | |
Deferred revenue | 54,199 | 46,033 | |
Income taxes payable | 4,104 | 5,455 | |
Other current liabilities | 33,449 | 22,886 | |
Total current liabilities | 560,836 | 527,209 | |
Non-current liabilities: | |||
Long-term debt, net of unamortized discounts of $15,628 and $2,656 | 534,997 | 375,469 | |
Operating lease liabilities | 34,360 | 53,207 | |
Deferred revenue | 23,447 | 21,991 | |
Income taxes payable | 3,041 | 3,410 | |
Deferred income taxes | 123 | 117 | |
Other non-current liabilities | 12,916 | 11,901 | |
Total non-current liabilities | 608,884 | 466,095 | |
Total liabilities | 1,169,720 | 993,304 | |
Stockholders' equity: | |||
Preferred stock, par value $.01 per share; 10,000 shares authorized; zero shares issued and outstanding | 0 | 0 | |
Common stock, par value $.01 per share; 100,000 shares authorized; 6,781 and 5,091 shares reserved for employee stock purchase plan and stock incentive plans; 29,541 and 31,269 shares outstanding | 713 | 708 | |
Additional paid-in capital | 490,947 | 495,189 | |
Treasury stock, at cost; 40,398 and 38,210 shares | (1,136,055) | (1,018,034) | |
Accumulated other comprehensive income (loss): | |||
Unrealized gain on short-term investments, net of tax | 1 | 1 | |
Cumulative foreign currency translation adjustments | (50,414) | (58,830) | |
Accumulated earnings | 968,134 | 936,215 | |
Total stockholders' equity | 273,326 | 355,249 | |
Total liabilities and stockholders' equity | 1,443,046 | 1,348,553 | |
Software | |||
Non-current assets: | |||
Intangible assets | 14,224 | 22,774 | |
Acquired customer contracts | |||
Non-current assets: | |||
Intangible assets | [1] | $ 35,879 | $ 45,417 |
[1] Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Trade accounts receivable-billed, allowance | $ 5,432 | $ 5,528 | |
Property and equipment, accumulated depreciation | 121,816 | 105,466 | |
Customer contract costs, accumulated amortization | 42,094 | 30,601 | |
Long-term debt, unamortized discounts | $ 15,628 | $ 2,656 | |
Preferred stock, par value | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares reserved for employee stock purchase plan and stock incentive plans | 6,781,000 | 5,091,000 | |
Common stock, shares outstanding | 29,541,000 | 31,269,000 | |
Treasury stock, shares | 40,398 | 38,210 | |
Software | |||
Intangibles, accumulated amortization | $ 157,601 | $ 150,337 | |
Acquired customer contracts | |||
Intangibles, accumulated amortization | [1] | $ 126,469 | $ 120,080 |
[1] Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 1,169,258 | $ 1,089,752 | $ 1,046,487 |
Cost of revenue (exclusive of depreciation, shown separately below) | 615,042 | 565,168 | 543,211 |
Other operating expenses: | |||
Research and development | 143,201 | 137,913 | 134,691 |
Selling, general and administrative | 247,613 | 238,018 | 214,694 |
Depreciation | 23,189 | 23,598 | 24,835 |
Restructuring and reorganization charges | 16,336 | 46,308 | 4,870 |
Total operating expenses | 1,045,381 | 1,011,005 | 922,301 |
Operating income | 123,877 | 78,747 | 124,186 |
Other income (expense): | |||
Interest expense | (31,176) | (16,432) | (14,569) |
Amortization of original issue discount | 0 | 0 | (3,021) |
Interest and investment income, net | 4,336 | 877 | 365 |
Loss on derivative liability upon debt conversion | 0 | (7,456) | 0 |
Other, net | (4,686) | 5,045 | (6,015) |
Total other | (31,526) | (17,966) | (23,240) |
Income before income taxes | 92,351 | 60,781 | 100,946 |
Income tax provision | (26,105) | (16,721) | (28,615) |
Net income | $ 66,246 | $ 44,060 | $ 72,331 |
Weighted-average shares outstanding: | |||
Basic | 29,938 | 31,028 | 31,776 |
Diluted | 30,115 | 31,298 | 32,010 |
Earnings per common share: | |||
Basic | $ 2.21 | $ 1.42 | $ 2.28 |
Diluted | $ 2.2 | $ 1.41 | $ 2.26 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 66,246 | $ 44,060 | $ 72,331 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 8,416 | (20,483) | (7,196) |
Unrealized holding gain (loss) on short-term investments arising during period | 0 | 7 | (19) |
Other comprehensive income (loss), net of tax | 8,416 | (20,476) | (7,215) |
Total comprehensive income, net of tax | $ 74,662 | $ 23,584 | $ 65,116 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Adjustments due to adoption of new accounting standard | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings | Accumulated Earnings Adjustments due to adoption of new accounting standard | Noncontrolling Interest |
Balance, beginning of period, shares at Dec. 31, 2020 | 32,713,000 | ||||||||
Balance, beginning of period at Dec. 31, 2020 | $ 422,395 | $ 700 | $ 470,557 | $ (894,126) | $ (31,138) | $ 876,402 | |||
Net Income (Loss) | 72,331 | 72,331 | |||||||
Unrealized gain on short-term investments, net of tax | (19) | (19) | |||||||
Foreign currency translation adjustments | (7,196) | (7,196) | |||||||
Total comprehensive income | 65,116 | ||||||||
Repurchase of common stock | (42,238) | (6,258) | (35,980) | ||||||
Repurchase of common stock, shares | (863,000) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 2,610 | 2,610 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 64,000 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 6 | (6) | |||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 661,000 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans | (1) | $ (1) | |||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (80,000) | ||||||||
Stock-based compensation expense | 21,400 | 21,400 | |||||||
Dividends | (32,673) | (32,673) | |||||||
Noncontrolling interest related to business combination | 3,635 | $ 3,635 | |||||||
Balance, ending of period, shares at Dec. 31, 2021 | 32,495,000 | ||||||||
Balance, ending of period at Dec. 31, 2021 | 440,244 | $ 705 | 488,303 | (930,106) | (38,353) | 916,060 | 3,635 | ||
Net Income (Loss) | 44,060 | 44,060 | |||||||
Unrealized gain on short-term investments, net of tax | 7 | (7) | |||||||
Foreign currency translation adjustments | (20,483) | (20,483) | |||||||
Total comprehensive income | 23,584 | ||||||||
Repurchase of common stock | (96,604) | $ (1) | (8,675) | (87,928) | |||||
Repurchase of common stock, shares | (1,635,000) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 2,969 | 2,969 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 57,000 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 6 | (6) | |||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 544,000 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans | $ (2) | 2 | |||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (192,000) | ||||||||
Stock-based compensation expense | 27,243 | 27,243 | |||||||
Settlement of convertible debt securities, net of tax | (4,845) | (4,845) | |||||||
Dividends | (33,707) | (33,707) | |||||||
Write-off of noncontrolling interest | $ (3,635) | $ (3,635) | |||||||
Balance, ending of period, shares at Dec. 31, 2022 | 31,269,000 | 31,269,000 | |||||||
Balance, ending of period at Dec. 31, 2022 | $ 355,249 | $ 708 | 495,189 | $ (9,802) | (1,018,034) | (58,829) | 936,215 | $ 9,802 | |
Net Income (Loss) | 66,246 | 66,246 | |||||||
Unrealized gain on short-term investments, net of tax | 0 | ||||||||
Foreign currency translation adjustments | 8,416 | 8,416 | |||||||
Total comprehensive income | 74,662 | ||||||||
Repurchase of common stock | (128,179) | $ (2) | (10,156) | (118,021) | |||||
Repurchase of common stock, shares | (2,369,000) | ||||||||
Issuance of common stock pursuant to employee stock purchase plan | 3,284 | 3,284 | |||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 74,000 | ||||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 7 | (7) | |||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 666,000 | ||||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (99,000) | ||||||||
Stock-based compensation expense | 28,990 | 28,990 | |||||||
Purchase of capped call transactions, net of tax | (26,353) | (26,353) | |||||||
Dividends | $ (34,327) | (34,327) | |||||||
Balance, ending of period, shares at Dec. 31, 2023 | 29,541,000 | 29,541,000 | |||||||
Balance, ending of period at Dec. 31, 2023 | $ 273,326 | $ 713 | $ 490,947 | $ (1,136,055) | $ (50,413) | $ 968,134 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 66,246 | $ 44,060 | $ 72,331 |
Adjustments to reconcile net income to net cash provided by operating activities- | |||
Depreciation | 23,585 | 27,967 | 24,835 |
Amortization | 47,667 | 48,984 | 47,966 |
Amortization of original issue discount | 0 | 0 | 3,021 |
Asset impairment | 2,061 | 31,761 | 1,270 |
Gain on lease modifications | (4,349) | 0 | 0 |
(Gain)/loss on short-term investments and other | 0 | 18 | (294) |
Loss on derivative liability upon debt conversion | 0 | 7,456 | 0 |
Loss on extinguishment of debt | 0 | 0 | 132 |
Loss on acquisition of controlling interest | 0 | 0 | 6,180 |
Unrealized foreign currency transactions (gain)/loss, net | 225 | (103) | (424) |
Deferred income taxes | (23,560) | (27,627) | 2,388 |
Stock-based compensation | 28,990 | 27,243 | 21,400 |
Changes in operating assets and liabilities, net of acquired amounts: | |||
Trade accounts receivable, net | (22,401) | (51,005) | (10,278) |
Other current and non-current assets and liabilities | (6,566) | (12,833) | (1,527) |
Income taxes payable/receivable | (1,849) | 9,336 | (10,174) |
Trade accounts payable and accrued liabilities | 12,541 | (36,971) | (15,607) |
Deferred revenue | 9,306 | (4,689) | (996) |
Net cash provided by operating activities | 131,896 | 63,597 | 140,223 |
Cash flows from investing activities: | |||
Purchases of software, property and equipment | (27,977) | (36,991) | (26,562) |
Purchases of short-term investments | 0 | 0 | (66,970) |
Proceeds from sale/maturity of short-term investments | 71 | 27,953 | 90,452 |
Acquisition of and investments in business, net of cash acquired | 0 | 0 | (63,626) |
Net cash used in investing activities | (27,906) | (9,038) | (66,706) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 3,284 | 2,969 | 2,610 |
Payment of cash dividends | (33,930) | (33,475) | (32,587) |
Repurchase of common stock | (127,065) | (96,720) | (42,253) |
Deferred acquisition payments | (3,220) | (2,314) | 0 |
Proceeds from long-term debt | 470,000 | 290,000 | 150,000 |
Payments on long-term debt | (327,500) | (264,801) | (128,438) |
Purchase of capped call transactions related to convertible notes | (34,298) | 0 | 0 |
Payments of deferred financing costs | (14,539) | 0 | (3,000) |
Settlement and merchant reserve activity | 35,963 | 52,656 | 20,277 |
Net cash used in financing activities | (31,305) | (51,685) | (33,391) |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | 2,173 | (5,758) | (2,954) |
Net decrease in cash, cash equivalents and restricted cash | 74,858 | (2,884) | 37,172 |
Cash, cash equivalents and restricted cash, beginning of period | 389,018 | 391,902 | 354,730 |
Cash, cash equivalents and restricted cash, end of period | 463,876 | 389,018 | 391,902 |
Cash paid during the period for- | |||
Interest | 24,730 | 18,314 | 12,882 |
Income taxes | 51,675 | 34,671 | 36,690 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 186,264 | 150,365 | 205,635 |
Settlement and merchant reserve assets | 274,699 | 238,653 | 186,267 |
Restricted cash included in current and non-current assets | 2,913 | 0 | 0 |
Total cash, cash equivalents and restricted cash | $ 463,876 | $ 389,018 | $ 391,902 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 66,246 | $ 44,060 | $ 72,331 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General
General | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. General CSG Systems International, Inc. (the “Company”, “CSG”, or forms of the pronoun “we”), a Delaware corporation, was formed in October 1994 and is based in Denver, Colorado. We are a purpose-driven, SaaS platform company with revenue management and digital monetization, customer experience, and payments solutions serving a wide variety of industry verticals. Our cloud-first architecture and customer-centric approach help companies around the world acquire, monetize, engage, and retain their B2B (business-to-business), B2C (business-to-consumer), and B2B2X (business-to-business-to-consumer) customers. Over the years, we have focused our research and development (“R&D”) and acquisition investments on expanding our solution set to address the complex, transformative needs of our customers. We are a member of the S&P SmallCap 600 and Russell 2000 indices. The accompanying Consolidated Financial Statements (“Financial Statements”) are prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation. Our Financial Statements include all of our accounts and our subsidiaries’ accounts. All material intercompany accounts and transactions have been eliminated. Translation of Foreign Currency. Our foreign subsidiaries generally use the local currency of the countries in which they operate as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue, expenses, and cash flows are translated at the average exchange rates prevailing during the period. Foreign currency translation adjustments are included in comprehensive income in stockholders’ equity. Foreign currency transaction gains and losses are included in the determination of net income. Use of Estimates in Preparation of Our Financial Statements. The preparation of our Financial Statements requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our Financial Statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more critical accounting estimates and related assumptions that may affect our financial position and results of operations are in the areas of: (i) revenue recognition; (ii) impairment assessments of long-lived assets; (iii) income taxes; and (iv) loss contingencies. Revenue Recognition. Our revenue from customer contracts is measured based on consideration specified in our contracts as discussed further below. We recognize revenue for our products and services separately if there are distinct performance obligations. A product or service, or group of products or services, has a distinct performance obligation if it is separately identifiable from other items in the context of the contract and if our customer can benefit from the product or service on their own or with other resources that are readily available to that customer. We recognize revenue when we satisfy our performance obligations by transferring control of a particular product or service, or group of products or services, to our customers, as described in more detail below. Taxes assessed on our products and services based on governmental authorities at the time of invoicing are generally excluded from our revenue. SaaS and Related Solutions Our SaaS and related solutions include: (i) our revenue management platforms and various related ancillary services; (ii) our managed services offering in which we operate software solutions (primarily our software solutions) on behalf of our customers; and (iii) our SaaS payments platform. We contract for our revenue management platform solutions using long-term arrangements whose terms have typically ranged from three to five years . These arrangements consist of a series of multiple services delivered daily or monthly, to include: (i) revenue management platforms; (ii) related products and services (e.g., field service management tools, consumer credit verifications, etc.); (iii) digital enablement and delivery functions; and (iv) customer statement invoice printing and mailing services. The fees for these services typically are billed to our customers monthly based upon actual monthly volumes and/or usage of services (e.g., the number of customer accounts maintained on our solutions, the number of transactions processed on our solutions, and/or the quantity and content of the monthly statements and mailings processed through our solutions). For revenue management platform solution contracts, the total contract consideration (including impacts of discounts, incentives, and/or service level agreements) is primarily variable dependent upon actual monthly volumes and/or usage of services; however, these contracts can also include ancillary fixed consideration in the form of one-time, monthly, or annual fees. The pricing of products and services in these contracts is generally at stand-alone selling price, with no allocation of value between the individual performance obligations. In situations where we do an allocation, we determine stand-alone selling price based on established pricing and/or cost, plus an applicable margin. Revenue is generally recognized based on activities performed over a series of daily or monthly periods. We contract for managed services using long-term arrangements whose terms have typically ranged from three to five years . Under managed services agreements, we operate software products (primarily our software solutions) on behalf of our customers: (i) out of a customer’s data center; (ii) out of a data center we own and operate; or (iii) out of a third-party data center we contract with for such services. Managed services can also include us providing other services, such as transitional services, fulfillment, remittance processing, operational consulting, back office, and end-user billing services. For managed services contracts, the total contract consideration is typically a fixed monthly fee, but these contracts may also have variable fee components. The fees for these services typically are billed to our customers on a monthly basis. Unless managed services are included with a software license contract (as discussed further below), there is generally only one performance obligation and revenue is recognized for these arrangements on a ratable basis as the services are performed. Our contracts for SaaS payments platform solutions are generally month-to-month or fixed term with automatic renewals. Services provided under these arrangements primarily include Automated Clearing House (“ACH”) transaction processing, credit/debit card processing, web-based and telephone payment processing, and real-time check verification and authentication services. The fees for these services typically are billed on a monthly basis. Our SaaS payments platform solutions are comprised of one performance obligation. Revenue for these services is based primarily on a fee per transaction or a percentage of the transaction principal, and is recognized as delivered over a series of daily service periods. Transaction fees collected from merchants are recognized as revenue on a gross basis when we are the principal in completing the payment processing transaction. As a principal to the transaction, we control the service of processing payments on our platform. We bear primary responsibility for the fulfillment of the payment service, contract directly with the merchant, and have full discretion in determining the fee charged to our customers which is independent of the costs we incur when we utilize payment processors or other financial institutions to perform services on our behalf. We therefore bear full margin risk when completing a payment processing transaction. Transaction fees are primarily comprised of fees paid to third-party payment processors and other financial institutions and interchange fees paid in conjunction with the delivery of service to customers under our payments services contracts. These fees are recognized in cost of revenue. Fees related to set-up or implementation activities for both SaaS and related solutions and managed services contracts are generally deferred and recognized ratably over the related service period to which the activities relate. Depending on the significance of variable consideration, number of products/services, complex pricing structures, and long-term nature of these types of contracts, the judgments and estimates made in this area could have a significant effect on the amount and timing of revenue recognized in any period. Software and Services Our software and services revenue relates primarily to: (i) software license sales on either a perpetual or term license basis; and (ii) professional services to implement the software. Our software and services contracts are often contracted in bundled arrangements that include the software license and related implementation services, and may also include maintenance, managed services, and/or additional professional services. For our software arrangements, total contract consideration is allocated between the separate performance obligations based on stand-alone selling prices for software licenses, cost plus applicable margin for third-party licenses and/or services, and established pricing for maintenance. The initial sale of our software products generally requires significant production, modification, or customization, such that the delivery of the software license and related professional services required to implement the software represent one combined performance obligation that is satisfied over time based on hours worked (i.e., hours-based method). We are using hours worked on the project, compared against expected hours to complete the project, as the measure to determine progress toward completion as we believe it is the most appropriate metric to measure such progress. The software and services fees are generally fixed fees billed to our customers on a milestone or date basis. The determination of the performance obligations and allocation of value for software license arrangements require significant judgment. We generally determine stand-alone selling prices using pricing calculations (which include regional market factors) for our software license fees and maintenance, and cost-plus margins for services. Additionally, our use of an hours-based method of accounting for software license and other professional services performance obligations that are satisfied over time requires estimates of the expected hours necessary to complete a project. Changes in estimates as a result of additional information or experience on a project as work progresses are inherent characteristics of this method of revenue recognition as we are exposed to business risks in completing these types of performance obligations. The estimation process to support our hours-based recognition method is more difficult for projects of greater length and/or complexity. The judgments and estimates made for these types of obligations could: (i) have a significant effect on revenue recognized in any period by changing the amount and/or the timing of the revenue recognized; and/or (ii) impact the expected profitability of a project, including whether an overall loss on an arrangement has occurred. To mitigate the inherent risks in using this hours-based method, we track our current hours expended against our estimates on a periodic basis and continually reevaluate the appropriateness of our estimates. In certain instances, we sell software license volume upgrades, which provide our customers with the right to use our software to process higher transaction volume levels. In these instances, we analyze the contract to determine if the volume upgrade is a separate performance obligation and if so, we recognize the value associated with the software license as revenue on the effective date of the volume upgrade. A portion of our professional services revenue is contracted separately (e.g., business consulting services, etc.). Such contracts can either be on a fixed-price or time-and-materials basis. Revenue from fixed-price professional service contracts is recognized using an estimated hours-based method (discussed above), as these professional services represent a performance obligation that is satisfied over time. Revenue from professional services contracts billed on a time-and-materials basis is recognized as the services are performed. Maintenance Our maintenance revenue relates primarily to support of our software once it has been implemented and placed in service. Maintenance revenue is recognized ratably over the software maintenance period as services are provided. Our maintenance consists primarily of customer and product support, technical updates (e.g., bug fixes, etc.), and unspecified upgrades or enhancements to our software products. If specified upgrades or enhancements are offered in a contract, they are accounted for as a separate performance obligation. Maintenance may be invoiced to our customers on a monthly, quarterly, or annual basis. Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2023 , our aggregate amount of the transaction price allocated to the remaining performance obligations was approximately $ 1.5 billion, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize over 75 % of this amount by the end of 2026 , with the remaining amount recognized by the end of 2036 . We have excluded from this amount variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied. The majority of our future revenue is related to our SaaS and related solutions customer contracts that includes variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2025 through 2036 . Disaggregation of Revenue The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Revenue: SaaS and related solutions $ 1,024,572 $ 956,995 $ 926,290 Software and services 98,078 87,247 72,818 Maintenance 46,608 45,510 47,379 Total revenue $ 1,169,258 $ 1,089,752 $ 1,046,487 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for 2023, 2022, and 2021, as a percentage of our total revenue, was as follows: 2023 2022 2021 Americas (principally the U.S.) 86 % 85 % 85 % Europe, Middle East, and Africa (principally Europe) 10 % 11 % 11 % Asia Pacific 4 % 4 % 4 % Total revenue 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in markets including retail, financial services, healthcare, insurance, and government entities. Revenue by customer vertical for 2023, 2022, and 2021, as a percentage of our total revenue, was as follows: 2023 2022 2021 Broadband/Cable/Satellite 52 % 54 % 57 % Telecommunications 20 % 20 % 19 % Other 28 % 26 % 24 % Total revenue 100 % 100 % 100 % Billed and Unbilled Accounts Receivable. Billed accounts receivable represents our unconditional rights to consideration. Once invoiced, our payment terms are generally between 30 - 60 days . We rarely have contracts with financing arrangements. Unbilled accounts receivable represents our rights to consideration for work completed but not billed. Unbilled accounts receivable is transferred to billed accounts receivable when the rights become unconditional, which is generally at the time of invoicing. The following table rolls forward our unbilled accounts receivable from January 1, 2022 to December 31, 2023 (in thousands): Unbilled Receivables Beginning Balance, January 1, 2022 $ 35,802 Recognized during the period 285,562 Reclassified to receivables ( 265,707 ) Other ( 2,827 ) Ending Balance, December 31, 2022 52,830 Recognized during the period 287,844 Reclassified to receivables ( 258,792 ) Other 281 Ending Balance, December 31, 2023 $ 82,163 Deferred Revenue. Deferred revenue represents consideration received from customers in advance of services being performed. The following table rolls forward our deferred revenue from January 1, 2022 to December 31, 2023 (in thousands): Deferred Revenue Beginning Balance, January 1, 2022 $ ( 73,347 ) Revenue recognized that was included in deferred revenue at the beginning 53,947 Consideration received in advance of services performed net of revenue ( 51,432 ) Other 2,808 Ending Balance, December 31, 2022 ( 68,024 ) Revenue recognized that was included in deferred revenue at the beginning 45,699 Consideration received in advance of services performed net of revenue ( 55,920 ) Other 599 Ending Balance, December 31, 2023 $ ( 77,646 ) Postage. We pass through to our customers the cost of postage that is incurred on behalf of those customers, and typically require an advance payment on expected postage costs. These advance payments are included in customer deposits in the accompanying Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”) and are classified as current liabilities regardless of the contract period. We net the cost of postage against the postage reimbursements for those customers where we require advance deposits and include the net amount (which is not material) in SaaS and related solutions revenue. Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less as of the date of purchase to be cash equivalents. As of December 31, 2023 and 2022, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. For the cash and cash equivalents denominated in foreign currencies and/or located outside the U.S., we do not anticipate any material amounts being unavailable for use in running our business, but may face limitations on moving cash out of certain foreign jurisdictions due to currency controls and potential negative economic consequences. Restricted Cash . Restricted cash includes cash that is legally or contractually restricted, as well as our settlement and merchant reserve assets (discussed below). The nature of the restrictions on our settlement and merchant reserve assets consists of contractual restrictions with the merchants and restrictions arising from our policy and intention. It has historically been our policy to segregate settlement and merchant reserve assets from our operating cash balances and our intention is to continue to do so. Our restricted cash mainly serves to collateralize bank guarantees, performance guarantees, and certain outstanding letters of credit. As of December 31, 2023 , we had $ 2.9 million of restricted cash included in other current and non-current assets in our Balance Sheets. As of December 31, 2022 , we had $ 1.0 million of restricted cash included in cash and cash equivalents in our Balance Sheets. Short-term Investments and Other Financial Instruments . Our financial instruments as of December 31, 2023 and 2022 include cash and cash equivalents, short-term investments, settlement and merchant reserve assets and liabilities, accounts receivable, accounts payable, and debt. Due to their short maturities, the carrying amounts of cash equivalents, settlement and merchant reserve assets and liabilities, accounts receivable, and accounts payable approximate their fair value. Our short-term investments and certain cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. Proceeds from the sale/maturity of short-term investments in 2023, 2022, and 2021 were $ 0.1 million, $ 28.0 million, and $ 90.5 million, respectively. The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): December 31, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 5,484 $ - $ 5,484 $ 5,318 $ - $ 5,318 Short-term investments: Asset-backed securities - - - - 71 71 Total $ 5,484 $ - $ 5,484 $ 5,318 $ 71 $ 5,389 Valuation inputs used to measure the fair value of our money market funds were derived from quoted market prices. The fair value of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): December 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 2023 Convertible Notes (par value) $ 425,000 $ 428,506 $ - $ - 2021 Credit Agreement (carrying value including Term Loan 133,125 133,125 140,625 140,625 Revolver - - 275,000 275,000 The fair value of our convertible notes was estimated based upon quoted market prices or recent sales activity, while the fair value of our credit agreement was estimated using a discounted cash flow methodology, both of which are considered Level 2 inputs . See Note 5 for discussion regarding our debt. Settlement and Merchant Reserve Assets and Liabilities. Settlement assets and settlement liabilities represent cash collected on behalf of merchants via payments processing services which is held for an established holding period until settlement with the customer. The holding period is generally one to four business days depending on the payment model and contractual terms with the customer. During the holding period, cash is subject to restriction and segregation based on the nature of our custodial relationship with the merchants. Should we fail to remit these funds to our merchants, the merchant’s sole recourse would be against us, for payment. These rights and obligations are set forth in the contracts between us and the merchants. Settlement assets are held with various major financial institutions and a corresponding liability is recorded for the amounts owed to the customer. At any given time, there may be differences between the cash held and the corresponding liability due to the timing of operating-related cash transfers. Merchant reserve assets/liabilities represent deposits collected from merchants to mitigate our risk of loss due to nonperformance of settlement obligations initiated by those merchants using our payments processing services, or non-payment by customers for services rendered by us. We perform a credit risk evaluation on each customer based on multiple criteria, which provides the basis for the deposit amount required for each merchant. For the duration of our relationship with each merchant, we hold their reserve deposits with major financial institutions. We hold these funds in separate accounts and are offset by corresponding liabilities. The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands): December 31, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 260,712 $ 259,825 $ 219,368 $ 218,525 Merchant reserve assets/liabilities 13,987 13,992 19,285 19,285 Total $ 274,699 $ 273,817 $ 238,653 $ 237,810 Concentrations of Credit Risk. In the normal course of business, we are exposed to credit risk. The principal concentrations of credit risk relate to cash deposits, cash equivalents, and accounts receivable. We regularly monitor credit risk exposures and take steps to mitigate the likelihood of these exposures resulting in a loss. We hold our cash deposits and cash equivalents with financial institutions we believe to be of sound financial condition. We generally do not require collateral or other security to support accounts receivable. We evaluate the creditworthiness of our customers in conjunction with our revenue recognition process, as well as through our ongoing collectability assessment process for accounts receivable. We maintain an allowance for expected losses based upon factors surrounding the credit risk of specific customers, historical trends, and other information. We use various judgments and estimates in determining the adequacy of the allowance for expected losses. See Note 3 for additional details of our concentration of accounts receivable. The activity in our allowance for expected losses is as follows (in thousands): 2023 2022 2021 Balance, beginning of year $ 5,528 $ 4,250 $ 3,628 Additions to expense 1,765 1,295 1,102 Write-offs ( 1,767 ) ( 8 ) ( 466 ) Other ( 94 ) ( 9 ) ( 14 ) Balance, end of year $ 5,432 $ 5,528 $ 4,250 Property and Equipment . Property and equipment are recorded at cost (or at estimated fair value if acquired in a business combination) and are depreciated over their estimated useful lives ranging from three to ten years . Leasehold improvements are depreciated over the shorter of their economic life or the lease term. Depreciation expense is computed using the straight-line method for financial reporting purposes. Depreciation expense for property and equipment is reflected in our Consolidated Statements of Income ("Income Statement" or "Income Statements") separately in the aggregate and is not included in the cost of revenue or the other components of operating expenses, except for accelerated depreciation expense that is included in our restructuring and reorganization charges (see Note 8 ). Software. We expend substantial amounts on R&D, particularly for new solutions and enhancements of existing products and services. For development of software solutions that are to be licensed by us, we expense all costs related to the development of the software until technological feasibility is established. For development of software to be used internally (e.g., cloud-based systems software), we expense all costs prior to the application development stage. During 2023, 2022, and 2021 , we expended $ 143.2 million, $ 137.9 million, and $ 134.7 million, respectively, on R&D projects. We did not capitalize any R&D costs in 2023, 2022, and 2021, as the costs subject to capitalization during these periods were not material. We did not have any capitalized R&D costs included in our December 31, 2023 and 2022 Balance Sheets. Realizability of Long-Lived Assets. We evaluate our long-lived assets, other than goodwill, for possible impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. A long-lived asset is impaired if estimated future undiscounted cash flows associated with that asset are insufficient to recover the carrying amount of the long-lived asset. If deemed impaired, the long-lived asset is written down to its estimated fair value. Goodwill. We evaluate our goodwill for impairment on an annual basis, as well as we may evaluate our goodwill on a more periodic basis (e.g., quarterly) if events occur or circumstances change that could indicate a potential impairment may have occurred. Goodwill is considered impaired if the carrying value of the reporting unit which includes the goodwill is greater than the estimated fair value of the reporting unit. Contingencies. We accrue for a loss contingency when: (i) it is probable that an asset has been impaired, or a liability has been incurred; and (ii) the amount of the loss can be reasonably estimated. The determination of loss contingencies is subject to various judgments and estimates. We do not record the benefit from a gain contingency until the benefit is realized. Earnings Per Common Share (“EPS”). Basic and diluted EPS amounts are presented on the face of our Income Statements. The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): 2023 2022 2021 Basic weighted-average common shares 29,938 31,028 31,776 Dilutive effect of restricted common stock 177 270 234 Diluted weighted-average common shares 30,115 31,298 32,010 The dilutive effect of restricted common stock is computed using the treasury stock method. The dilutive effect of the 2023 Convertible Notes is computed using the if-converted method and will only have an effect in those quarterly periods in which our average stock price exceeds the current effective conversion price. Potentially dilutive common shares related to non-participating unvested restricted stock and stock warrants were excluded from the computation of diluted EPS, as the effect was anti-dilutive, and were not material in any period presented. Stock warrants (see Note 12 ) will only have a dilutive effect upon vesting in those periods in which our average stock price exceeds the exercise price of $ 26.68 per warrant. Stock-Based Compensation . Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation cost at the grant date of the award, based on the estimated fair value of the award, and recognize the cost (net of estimated forfeitures) over the requisite service period. Income Taxes. We account for income taxes using the asset and liability method. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Accounting Pronouncements Adopted. Effective January 1, 2022, we adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. (“ASU 2020-06”), which simplified the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. ASU 2020-06 also amended the related EPS guidance. We adopted ASU 2020-06 using the modified retrospective transition method and recorded a $ 9.8 million cumulative-effect adjustment to our accumulated earnings and additional paid-in capital balances. Accounting Pronouncements Issued but Not Yet Effective. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) , (“ASU 2023-07”), which enhances reportable segment disclosure requirements in part by requiring entities to disclose significant expenses related to their reportable segments. ASU 2023-07 also requires disclosure of the title and position of the company’s Chief Operating Decision Maker (“CODM”) and how the CODM uses financial reporting to assess segment performance and allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023. We are in the process of evaluating what impact this ASU will have on our Financial Statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires entities to disclose more detailed information about their effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are in the process of evaluating what impact this ASU will have on our Financial Statements and disclosures. |
Segment Reporting and Significa
Segment Reporting and Significant Concentration | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting and Significant Concentration | 3. Segment Reporting and Significant Concentration Segment Information. We have evaluated how our CODM has organized our Company for purposes of making operating decisions and assessing performance, and have concluded that as of December 31, 2023 , there is one reportable segment. Solutions and Services. Our solutions and services help companies around the world monetize and digitally enable the customer experience by accurately capturing, managing, generating, and optimizing the interactions and revenue associated with their customers. We generate a substantial percentage of our revenue from customers utilizing Advanced Convergent Platform (“ACP”), a private SaaS platform, and related solutions (e.g., service technician management, analytics, electronic bill presentment, etc.) within the North American communications markets. In addition, a smaller portion of our revenue is generated from our public SaaS revenue management and payments platforms, serving customers globally. In addition, we license certain solutions (e.g., mediation, partner management, rating, and charging) and provide our professional services to implement, configure, and maintain these solutions. These solutions are sometimes provided under a managed service arrangement, where we assume long-term responsibility for delivering and maintaining our solutions and related operations under a defined scope and specified service levels. Significant Customers . A large percentage of our revenue has been generated from our two largest customers, Charter Communications, Inc. (“Charter”) and Comcast Corporation (“Comcast”). Revenue from these customers represented the following percentages of our total revenue for the following years: 2023 2022 2021 Charter 21 % 20 % 21 % Comcast 18 % 20 % 21 % As of December 31, 2023 and 2022, the percentage of net billed accounts receivable balances attributable to these customers were as follows: As of December 31, 2023 2022 Charter 23 % 22 % Comcast 17 % 17 % We expect to continue to generate a large percentage of our future revenue from our significant customers. There are inherent risks whenever a large percentage of total revenue is concentrated with a limited number of customers. Should a significant customer: (i) terminate or fail to renew their contracts with us, in whole or in part for any reason; (ii) significantly reduce the number of customer accounts processed on our solutions, the price paid for our solutions and services, or the scope of solutions and services that we provide; or (iii) experience financial or operating difficulties, it could have a material adverse effect on our financial position and results of operations. |
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Long-Lived Assets | 4. Goodwill and Long-Li ved Assets Property and Equipment. Property and equipment as of December 31, 2023 and 2022 consisted of the following (in thousands, except years): Useful Lives (Years) December 31, 2023 December 31, 2022 Computer equipment 3 - 6 $ 89,946 $ 85,432 Leasehold improvements 10 27,134 23,996 Operating equipment 3 - 8 67,825 65,949 Furniture and fixtures 8 2,456 1,876 187,361 177,253 Less – accumulated depreciation ( 121,816 ) ( 105,466 ) Property and equipment, net $ 65,545 $ 71,787 Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill for 2022 and 2023 is as follows (in thousands): January 1, 2022 balance $ 321,330 Adjustments related to prior acquisitions 1,896 Impairment charge related to MobileCard Holdings, LLC ( 7,211 ) Effects of changes in foreign currency exchange rates ( 11,979 ) December 31, 2022 balance 304,036 Adjustments related to prior acquisitions ( 20 ) Impairment charge related to Keydok, LLC ( 1,118 ) Effects of changes in foreign currency exchange rates 5,698 December 31, 2023, balance $ 308,596 The 2022 adjustments related to prior acquisitions are primarily a result of the finalization of the purchase accounting for MobileCard Holdings, LLC (“MobileCard”) and DGIT Systems Pty Ltd (“DGIT”). See Notes 7 and 8 for further discussion, to include the decisions to dissolve the MobileCard and Keydok, LLC (“Keydok”) businesses, resulting in the impairment charges recorded above. Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist of acquired customer contracts and software. Acquired Customer Contracts. As of December 31, 2023 and 2022, the carrying values of our acquired customer contracts were as follows (in thousands): December 31, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Acquired customer contracts (1) $ 162,348 $ ( 126,469 ) $ 35,879 $ 165,497 $ ( 120,080 ) $ 45,417 The aggregate amortization related to acquired customer contracts included in our operations for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Acquired customer contracts (1) $ 9,775 $ 11,605 $ 9,240 (1) Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements. The remaining weighted-average amortization period of the acquired customer contracts as of December 31, 2023 was approximately 74 months. Based on the net carrying value of these acquired customer contracts, the estimated amortization for each of the five succeeding fiscal years ending December 31 will be: 2024 – $ 8.6 million; 2025 – $ 7.7 million; 2026 – $ 5.9 million; 2027 – $ 3.1 million; and 2028 – $ 2.5 million. Software . Software consists of: (i) software and similar intellectual property rights from various business acquisitions; and (ii) internal use software. As of December 31, 2023 and 2022, the carrying values of our software assets were as follows (in thousands): December 31, 2023 December 31, 2022 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Acquired software (2) $ 84,031 $ ( 77,520 ) $ 6,511 $ 83,543 $ ( 74,578 ) $ 8,965 Internal use software (3) 87,794 ( 80,081 ) 7,713 89,568 ( 75,759 ) 13,809 Total software $ 171,825 $ ( 157,601 ) $ 14,224 $ 173,111 $ ( 150,337 ) $ 22,774 The aggregate amortization related to software included in our operations for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Acquired software amortization (2) $ 2,410 $ 2,750 $ 2,405 Internal use software amortization (3) 13,624 14,140 13,316 Total software amortization $ 16,034 $ 16,890 $ 15,721 (2) Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years . The amortization of acquired software is reflected as a cost of revenue in our Income Statements. (3) Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years . The remaining weighted-average amortization period of the software intangible assets as of December 31, 2023 was approximately 24 months. Based on the net carrying value of these intangible assets, the estimated amortization for each of the four succeeding fiscal years ending December 31 will be: 2024 – $ 8.2 million; 2025 – $ 3.8 million; 2026 – $ 2.1 million; and 2027 – $ 0.1 million; with the software intangible assets being fully amortized by the end of 2027. Customer Contract Costs . As of December 31, 2023 and 2022, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands): December 31, 2023 December 31, 2022 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Customer contract incentives (4) $ 7,027 $ ( 4,935 ) $ 2,092 $ 6,626 $ ( 3,798 ) $ 2,828 Capitalized costs (5) 71,976 ( 29,027 ) 42,949 63,081 ( 20,459 ) 42,622 Capitalized commission fees (6) 17,512 ( 8,132 ) 9,380 15,629 ( 6,344 ) 9,285 Total customer contract costs $ 96,515 $ ( 42,094 ) $ 54,421 $ 85,336 $ ( 30,601 ) $ 54,735 The aggregate amortization related to our customer contract costs included in our operations for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Customer contract incentives amortization (4) $ 1,136 $ 792 $ 687 Capitalized costs amortization (5) 15,422 15,918 17,955 Capitalized commission fees amortization (6) 3,733 3,028 2,576 Total customer contract costs amortization $ 20,291 $ 19,738 $ 21,218 (4) Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer accounts on, our solutions. Customer contract incentives are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2023 , have termination dates that range from 2024 to 2027 . The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements. (5) Capitalized costs are related to: (i) customer conversion/set-up activities; and (ii) direct material costs to fulfill long-term revenue management solutions and managed services arrangements. These costs are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023 , range from 2024 to 2036 , and are included in cost of revenue in our Income Statements. (6) Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023 , range from 2024 to 2029 , and are included in Selling, General, and Administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt As of December 31, 2023 and 2022, our long-term debt was as follows (in thousands): December 31, 2023 December 31, 2022 2023 Convertible Notes: 2023 Convertible Notes – senior unsecured convertible notes, due September 2028 , cash interest at 3.875 % $ 425,000 $ - Less – deferred financing costs ( 13,216 ) - 2023 Convertible Notes, net of unamortized discounts 411,784 - 2021 Credit Agreement: 2021 Term Loan, due September 2026 , interest at adjusted SOFR plus 6.823 % at December 31, 2023) 133,125 140,625 Less – deferred financing costs ( 2,412 ) ( 2,656 ) 2021 Term Loan, net of unamortized discounts 130,713 137,969 $ 450 million revolving loan facility, due September 2026 , interest at adjusted - 275,000 Total debt, net of unamortized discounts 542,497 412,969 Current portion of long-term debt, net of unamortized discounts ( 7,500 ) ( 37,500 ) Long-term debt, net of unamortized discounts $ 534,997 $ 375,469 2023 Convertible Notes. In September 2023, we completed an offering of $ 425.0 million of 3.875 % senior convertible notes due September 15, 2028 (the “2023 Convertible Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2023 Convertible Notes are unsecured obligations and will pay 3.875 % annual cash interest, payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2024. The 2023 Convertible Notes will be convertible at the option of the noteholders before June 15, 2028, upon the occurrence of certain events. On or after June 15, 2028, and until the close of business on the second scheduled trading day immediately preceding September 15, 2028, the maturity date, noteholders may convert all or any portion of their notes at any time regardless of these conditions. The 2023 Convertible Notes will be convertible at a conversion rate of 14.0753 shares of our common stock per $ 1,000 principal amount of the 2023 Convertible Notes, which is equivalent to a conversion price of $ 71.05 per share of our common stock and t he conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events, in accordance with the terms of the indenture. Under the terms of the 2023 Convertible Notes, we will adjust the conversion rate for any quarterly dividends exceeding $ 0.28 per share. We are required to satisfy our conversion obligation as follows: (i) paying cash up to the aggregate principal amount of notes to be converted; and (ii) to the extent the value of our conversion obligation exceeds the par value, we will satisfy the remaining conversion obligation in our common stock, cash, or a combination thereof, at our election. As of December 31, 2023, none of the conditions to early convert have been met. Holders may require us, subject to certain conditions, to repurchase all or a portion of their 2023 Convertible Notes for cash upon the occurrence of a fundamental change (as defined in the Indenture related to the 2023 Convertible Notes (“2023 Notes Indenture”)). The repurchase price will be equal to the principal amount thereof plus accrued and unpaid interest to, but excluding, the repurchase date. We may not redeem the 2023 Convertible Notes prior to September 21, 2026. On or after September 21, 2026 , we may redeem for cash all or part of the 2023 Convertible Notes, subject to a partial redemption limitation that requires at least $ 100.0 million of the principal amount of the 2023 Convertible Notes to remain outstanding if the last reported sales price of our common stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. The redemption price will equal the principal amount of the 2023 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund has been established for the 2023 Convertible Notes. The 2023 Notes Indenture includes customary terms, including certain events of default after which the 2023 Convertible Notes may be due and payable immediately. The 2023 Notes Indenture contains customary affirmative covenants, including a reporting covenant. In September 2023, in connection with the pricing of the 2023 Convertible Notes, we entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain of the initial purchasers of the 2023 Convertible Notes and other financial institutions (collectively, the “Option Counterparties”). We used $ 34.3 million of the net proceeds from the offering of the 2023 Convertible Notes to pay the premiums of the Capped Call Transactions. The Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the 2023 Convertible Notes, 5.98 million shares of our common stock, the same number of shares of common stock underlying the 2023 Convertible Notes. The Capped Call Transactions will expire upon the maturity of the 2023 Convertible Notes. The Capped Call Transactions are expected generally to reduce the potential dilution to our common stock upon conversion of the 2023 Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of the 2023 Convertible Notes, in the event that the market price per share of common stock (as measured under the terms of the Capped Call Transactions) is greater than the strike price of the Capped Call Transactions. The strike price of the Capped Call Transactions initially corresponds to the initial conversion price of the 2023 Convertible Notes, or $ 71.05 per share of our common stock, plus any carryforward adjustments not yet effected. The Capped Call Transactions have an initial cap price of $ 96.52 per share of our common stock, which represents a premium of 80 % over the last reported sale price of our common stock on the date the 2023 Convertible Notes were issued, subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions are separate transactions entered into by us with the Option Counterparties. They are not part of the terms of the 2023 Convertible Notes and do not change the holders’ rights under the 2023 Convertible Notes. The Capped Call Transactions do not meet the criteria for separate accounting as a derivative as they meet the criteria for equity classification. The premiums paid for the Capped Call Transactions of $ 34.3 million have been included as a reduction to additional paid-in capital, net of $ 7.9 million of deferred income taxes. The proceeds from the sale of the 2023 Convertible Notes, net of financing costs, were $ 411.0 million. We used the net proceeds to: (i) repay the principal amount of $ 275.0 million of outstanding borrowings under our $ 450.0 million, five-year revolving loan facility; (ii) repurchase 1.7 million shares of our common stock for $ 90.1 million in privately negotiated transactions, concurrently with the pricing of the offering of the 2023 Convertible Notes; and (iii) pay the $ 34.3 million premium for the Capped Call Transactions. The remaining net proceeds were used for general corporate purposes. In conjunction with the closing of the 2023 Convertible Notes, we incurred financing costs of $ 14.0 million which are being amortized to interest expense using the effective interest method through maturity. 2021 Credit Agreement. In September 2021, we entered into a $ 600.0 million credit agreement (the “2021 Credit Agreement”) with a consortium of banks to replace our $ 350.0 million credit agreement (“2018 Credit Agreement”). The 2021 Credit Agreement provides borrowings in the form of: (i) a $ 150.0 million aggregate principal five-year term loan (the “2021 Term Loan”); and (ii) a $ 450.0 million aggregate principal five-year revolving loan facility (the “2021 Revolver”). With the $ 150.0 million proceeds from the 2021 Term Loan, we repaid the outstanding $ 120.0 million balance of the term loan under the 2018 Credit Agreement, resulting in a net increase of available cash of $ 30.0 million, a portion of which we used to pay certain fees and expenses in connection with the refinancing, and the remainder of which was used for general corporate purposes. In April 2023, we entered into the First Amendment to the 2021 Credit Agreement (the “First Amendment”). The First Amendment replaced the interest rate benchmark, from LIBOR to the Secured Overnight Financing Rate ("SOFR"), and all references to “Eurodollar Borrowing(s)” or “Eurodollar Loans” were replaced with “Term SOFR Borrowing(s)” or “Term SOFR Loans”. Any loan amounts outstanding at the effective date of the First Amendment continued to bear interest at the applicable LIBOR rate until the end of the interest election period applicable to such loan. All Term SOFR Loans are subject to a 0.10 % credit spread adjustment. The interest rates under the 2021 Credit Agreement are based upon our choice of an adjusted SOFR rate plus an applicable margin of 1.375 % - 2.125 %, or an alternate base rate ("ABR") plus an applicable margin of 0.375 % - 1.125 %, with the applicable margin being determined in accordance with our then-net secured total leverage ratio. We pay a commitment fee of 0.150 % - 0.325 % of the average daily unused amount of the 2021 Revolver, with the commitment fee rate also determined in accordance with our then-net secured total leverage ratio. The 2021 Credit Agreement contains customary affirmative, negative, and financial covenants that places limits on our ability to: (i) incur additional indebtedness; (ii) create liens on its property; (iii) make investments; (iv) enter into mergers and consolidations; (v) sell assets; (vi) declare dividends or repurchase shares; (vii) engage in certain transactions with affiliates; (viii) prepay certain indebtedness; and (ix) issue capital stock of subsidiaries. We must also meet certain financial covenants to include: (i) a maximum total leverage ratio; (ii) a maximum first-lien leverage ratio; and (iii) a minimum interest coverage ratio. In conjunction with the 2021 Credit Agreement, we entered into a security agreement in favor of Bank of America N.A., as collateral agent (the “Security Agreement”). Under the Security Agreement and 2021 Credit Agreement, certain of our domestic subsidiaries have guaranteed its obligations, and have pledged substantially all of our assets to secure the obligations under the 2021 Credit Agreement and such guarantees. During 2023 , we made $ 7.5 million of principal repayments on our 2021 Term Loan. In conjunction with the issuance of the 2023 Convertible Notes, we repaid $ 275.0 million on our 2021 Revolver. Additionally, during 2023, we borrowed and repaid an additional $ 45.0 million on our 2021 Revolver. As of December 31, 2023 , we had no borrowings outstanding on our 2021 Revolver, leaving the entire $ 450.0 million available to us. As of December 31, 2023 , our interest rate on the 2021 Term Loan is 6.823 % (adjusted SOFR, credit spread adjustment of 0.10 %, plus 1.375 % per annum), effective through March 2024 , and our commitment fee on the 2021 Revolver is 0.15 %. In conjunction with the closing of the 2021 Credit Agreement, we incurred financing costs of $ 3.0 million. When combined with the remaining deferred financing costs of the 2018 Credit Agreement, financing costs of $ 3.7 million were deferred and are being amortized to interest expense using the effective interest method over the related term of the 2021 Credit Agreement. Additionally, as certain lenders from the 2018 Credit Agreement chose not to participate in the 2021 Credit Agreement syndication group, we wrote-off $ 0.1 million of unamortized debt issuance costs and recognized a loss on the extinguishment of the 2018 Credit Agreement. In September 2023, we entered into the Second Amendment to the 2021 Credit Agreement (the “Second Amendment”). The Second Amendment permitted the issuance and sale of the 2023 Convertible Notes and the related Capped Call Transactions (described above). In conjunction with the Second Amendment, we incurred financing costs of $ 0.5 million which have been combined with the remaining deferred financing costs and are being amortized to interest expense using the effective interest method over the remaining term of the 2021 Credit Agreement. 2016 Convertible Notes. In March 2016, we completed an offering of $ 230.0 million of 4.25 % senior convertible notes due March 15, 2036 (the “2016 Convertible Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2016 Convertible Notes were unsecured obligations and paid 4.25 % annual cash interest, payable semiannually in arrears on March 15 and September 15 of each year. In November 2021, we entered into the First Supplemental Indenture to the 2016 Notes Indenture, in which we made an irrevocable election to settle the par amount in cash. On December 15, 2021, we notified holders of the 2016 Convertible Notes that we elected a cash settlement method for any conversions of the 2016 Convertible Notes during the period of December 15, 2021 to March 14, 2022. On December 27, 2021 , we notified holders of the 2016 Convertible Notes that we had elected to redeem all of the outstanding notes on March 15, 2022, at a redemption price of 100 % of the principal amount. During the conversion period, $ 229.1 million principal amount of the 2016 Convertible Notes were converted. On March 15, 2022, we paid each converting holder that exercised their conversion right, cash in an amount equal to $ 1,053.68 per each $ 1,000 principal amount of 2016 Convertible Notes being converted, for a total cash payment of $ 241.4 million. The remaining principal amount of $ 0.9 million that was not converted by the holders was redeemed and paid for on March 15, 2022 at a redemption price of 100 % of the principal amount. Total settlement of the 2016 Convertible Notes was $ 242.3 million. As a result of our irrevocable election made in December 2021 to settle all conversions during the conversion period in cash , a derivative liability was created and required to be separated from the debt upon conversion by the holders. We recognized a $ 7.5 million loss on derivative liability upon debt conversion due to the related change in our stock price over the 40 consecutive trading days during the period of January 12, 2022 to March 10, 2022 (the o bservation period). The loss was recorded to other income (expense) in our Income Statements with the remaining amount paid above par of $ 4.8 million, net of tax, recorded to additional paid-in capital. The original issue discount (“OID”) related to the 2016 Convertible Notes was amortized to interest expense through December 15, 2021, the first date the 2016 Convertible Notes could be put back to us by the holders without conditions. Estimated Maturities on Long-Term Debt. As of December 31, 2023 , the maturities of our long-term debt, based upon: (i) the maturity date of the 2023 Convertible Notes; and (ii) the mandatory repayment schedule for the 2021 Term Loan, were as follows (in thousands): 2024 2025 2026 2027 2028 Total 2023 Convertible Notes $ - $ - $ - $ - $ 425,000 $ 425,000 2021 Term Loan 7,500 7,500 118,125 - - 133,125 Total long-term debt repayments $ 7,500 $ 7,500 $ 118,125 $ - $ 425,000 $ 558,125 Deferred Financing Costs. As of December 31, 2023 , net deferred financing costs related to the 2021 Credit Agreement were $ 2.4 million and are being amortized to interest expense over the related term of the 2021 Credit Agreement (through September 2026). As of December 31, 2023 , net deferred financing costs related to the 2023 Convertible Notes were $ 13.2 million and are being amortized to interest expense through the maturity date of the 2023 Convertible Notes (September 2028). The net deferred financing costs are presented as a reduction from the carrying amount of the corresponding debt liability on our Balance Sheets. Interest expense for 2023, 2022, and 2021 includes amortization of deferred financing costs of $ 1.7 million, $ 1.0 million, and $ 1.9 million, respectively. The weighted-average interest rate on our debt borrowings, including amortization of OID, amortization of deferred financing costs, and commitment fees on the revolving loan facility, for 2023, 2022, and 2021 , was approximately 7 %, 4 %, and 5 %, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 6. Leases We have operating leases for: (i) real estate which includes office space and our design and delivery centers; and (ii) our outsourced data center environment, as discussed further in Note 11 . Our leases have remaining terms through 2033, some of which include options to extend the leases for up to an additional ten years. The exercise of lease renewal options is at our sole discretion. Additionally, certain of our leases include payments that are adjusted periodically for inflation. We have made an accounting policy election not to recognize on our Balance Sheets leases with an initial term of twelve months or less, for any class of underlying asset. We have also made an election for real estate leases not to separate the lease and non-lease components, but rather account for the entire arrangement as a single lease component. For our outsourced data center environment agreement, we have concluded that there are lease and non-lease components and have allocated the consideration in the agreement on a relative stand-alone price basis. Due to the significant assumptions and judgements required in accounting for leases (to include whether a contract contains a lease, the allocation of the consideration, and the determination of the discount rate), the judgements and estimates made could have a significant effect on the amount of assets and liabilities recognized. We sublease certain of our leased real estate to third parties. These subleases have remaining lease terms through 2031. The components of lease expense for 2023, 2022, and 2021 were as follows (in thousands): 2023 2022 2021 Operating lease expense $ 16,073 $ 21,516 $ 26,131 Variable lease expense 3,299 4,103 4,530 Short-term lease expense 1,115 1,105 582 Sublease income ( 2,691 ) ( 2,246 ) ( 2,596 ) Total net lease expense $ 17,796 $ 24,478 $ 28,647 The decrease in lease expense is due to our flexible work approach that began in 2022 and resulted in the consolidation and closure of office space at numerous of our leased real estate locations (see Note 8). Other information related to leases for 2023, 2022, and 2021 was as follows (in thousands, except term and discount rate): 2023 2022 2021 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of $ 20,559 $ 21,125 $ 23,272 Right-of-use assets obtained in exchange for new 2,787 3,817 3,909 Weighted-average remaining lease term - operating 58 months 54 months 59 months Weighted-average discount rate - operating 3.95 % 3.84 % 3.30 % Future minimum lease payments under non-cancelable leases as of December 31, 2023 were as follows (in thousands): 2024 $ 16,957 2025 13,173 2026 5,860 2027 5,119 2028 4,933 Thereafter 9,437 Total future minimum lease payments (1) 55,479 Less: Interest (2) ( 5,173 ) Total $ 50,306 Current operating lease liabilities $ 15,946 Non-current operating lease liabilities 34,360 Total $ 50,306 (1) For leases commencing prior to 2019, minimum lease payments exclude payments for real estate taxes and non-lease components. (2) We use our functional currency adjusted incremental borrowing rate for the discount rate. During 2023, we entered into a new agreement with our outsourced data center environment provider that is effective in 2025 (see Note 11). As a result, upon commencement we will evaluate the lease and non-lease components and allocate the consideration between them. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions MobileCard Holdings, LLC. In 2018, we invested in MobileCard, a mobile money fintech payment company in Latin America. In July 2021, we made an additional investment in MobileCard, and w e purchased additional LLC units from a third-party for approximately $ 4 million and contributed cash of approximately $ 2 million, resulting in a 64 % controlling interest in the company. Beginning in the third quarter of 2021, the results of MobileCard were consolidated in our results of operations. In June 2022, we decided to dissolve the MobileCard business. See Note 8 for additional discussion. Keydok, LLC. On September 14, 2021 , we acquired Keydok, a digital identity and document management platform provider, headquartered in Mexico. We acquired 100 % of the equity of Keydok for a purchase price of $ 1.0 million. In March 2023, we decided to dissolve the Keydok business. See Note 8 for additional discussion. DGIT Systems Pty Ltd. On October 4, 2021 , we acquired DGIT, a provider of configure, price and quote (CPQ), and order management solutions for the telecommunications industry. We acquired 100 % of the equity of DGIT for a purchase price of approximately $ 16 million, with approximately $ 14 million paid upon close and the remaining consideration of approximately $ 2 million paid through 2025, subject to certain reductions, as applicable. During 2023 and 2022, we made purchase price payments of $ 1.2 million and $ 0.3 million, respectively. The DGIT acquisition includes provisions for up to approximately $ 13 million of potential future earn-out payments. The earn-out payments are tied to performance-based goals and a defined service period by the eligible recipients and are accounted for as post-acquisition compensation, as applicable. The earn-out period is through September 30, 2025. During 2022, $ 0.3 million of the earn-out had been achieved and was paid in 2023. |
Restructuring and Reorganizatio
Restructuring and Reorganization Charges | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Reorganization Charges | 8. Restructuring and Reorganization Charges Restructuring and reorganization charges are expenses that generally result from cost reduction initiatives and/or significant changes to our business, to include such things as involuntary employee terminations, changes in management structure or skillset, divestitures of businesses, facility consolidations and abandonments, modifications of leases, impairment of acquired intangible assets, and fundamental reorganizations impacting operational focus and direction. The following are the key restructuring and reorganizational activities we incurred over the last three years that have impacted our results from operations. During 2023 we implemented the following restructuring and reorganizational activities: • We decided to dissolve the Keydok business, which we had acquired in 2021 (see Note 7). As a result, we recorded net impairment charges of $ 1.2 million, to include the write-off of the acquired goodwill. We also subsequently terminated approximately 30 Mexico-based employees, which resulted in restructuring charges related to involuntary terminations of $ 1.6 million. • We reduced our workforce by approximately 110 employees, mainly in the U.S., as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $ 3.5 million. • We modified three of our real estate leases, at previously closed locations in India and the U.S., resulting in earlier termination dates and the recognition of a $ 4.3 million gain. We also recorded $ 0.5 million of additional operating lease right-of-use asset impairments. • We exited two reseller agreements that were acquired with the acquisition of Forte Payment Systems, Inc. in 2018. As a result, we incurred expenses of $ 9.9 million, of which $ 1.8 million has been paid and $ 8.1 million was accrued as of December 31, 2023. During 2022 we implemented the following restructuring and reorganizational activities: • In connection with our flexible work approach , we consolidated or closed office space at thirteen of our leased real estate locations in Australia, India, Sweden, and the U.S., resulting in restructuring charges of $ 23.1 million related to the impairments of operating lease right-of-use assets, furniture and fixtures, and leasehold improvements, and $ 4.4 million of accelerated depreciation. • We decided to dissolve the MobileCard business, as it was not meeting its projected targets. We had acquired a controlling interest in July of 2021 (see Note 7 ). As a result, we recorded net impairment charges of $ 7.0 million, to include the write-offs of the remaining acquired intangible assets, goodwill, and the noncontrolling interest. We also terminated approximately 40 Mexico-based employees, which resulted in restructuring charges related to involuntary terminations of $ 0.6 million. • We reduced our workforce by approximately 100 employees, mainly in North America, as a result of organizational changes and efficiencies, to include a margin improvement initiative that began in the second quarter of 2022. As a result, we incurred restructuring charges related to involuntary terminations of $ 7.1 million. During 2021 we implemented the following restructuring and reorganizations activities: • We reduced our workforce by approximately 100 employees, mainly in North America, as a result of organizational changes and efficiencies. As a result, we incurred restructuring charges related to involuntary terminations of $ 3.4 million. • We modified one of our real estate leases in the U.S., resulting in an earlier termination date. As a result, we incurred restructuring charges related to the accelerated depreciation of furniture and fixtures and leasehold improvements of $ 1.2 million. The activities discussed above resulted in total charges for 2023, 2022, and 2021 of $ 16.3 million, $ 46.3 million, and $ 4.9 million, respectively, which have been reflected as a separate line item in our Income Statements. The activity in the business restructuring and reorganization reserves during 2023, 2022, and 2021 is as follows (in thousands): Termination Benefits Other Total January 1, 2021, balance $ 933 $ - $ 933 Charged to expense during period 3,419 1,451 4,870 Cash payments ( 3,516 ) 210 ( 3,306 ) Adjustment for accelerated depreciation - ( 1,246 ) ( 1,246 ) Adjustment for asset impairment - ( 415 ) ( 415 ) Other ( 161 ) - ( 161 ) December 31, 2021, balance 675 - 675 Charged to expense during period 7,720 38,588 46,308 Cash payments ( 7,665 ) ( 4,098 ) ( 11,763 ) Adjustment for accelerated depreciation - ( 30,121 ) ( 30,121 ) Adjustment for asset impairment - ( 4,369 ) ( 4,369 ) Other 1,761 - 1,761 December 31, 2022, balance 2,491 - 2,491 Charged to expense during period 5,128 11,208 16,336 Cash payments ( 7,027 ) ( 5,386 ) ( 12,413 ) Adjustment for accelerated depreciation - ( 396 ) ( 396 ) Adjustment for asset impairment - ( 1,675 ) ( 1,675 ) Adjustment for gain on lease modifications - 4,349 4,349 Other 842 - 842 December 31, 2023, balance $ 1,434 $ 8,100 $ 9,534 As of December 31, 2023 , $ 6.9 million of the business restructuring and reorganization reserves were included in current liabilities. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Income Tax Provision. The components of net income before income taxes are as follows (in thousands): 2023 2022 2021 Domestic $ 72,769 $ 53,251 $ 98,261 Australia 854 ( 5,851 ) ( 3,429 ) India 10,008 9,517 5,873 Ireland ( 236 ) ( 3,391 ) 1,627 United Kingdom 2,029 2,533 ( 5,734 ) Foreign other 6,927 4,722 4,348 Total $ 92,351 $ 60,781 $ 100,946 The income tax provision consists of the following (in thousands): 2023 2022 2021 Current: Federal $ 34,438 $ 30,012 $ 17,012 State 8,230 6,517 5,835 Australia ( 333 ) 55 118 India 3,601 4,370 959 Ireland 336 273 561 United Kingdom 1,002 349 426 Foreign other 2,391 2,772 1,338 49,665 44,348 26,249 Deferred: Federal ( 19,687 ) ( 21,962 ) 2,294 State ( 1,982 ) ( 3,073 ) 344 Australia ( 896 ) ( 890 ) ( 180 ) India ( 1,231 ) ( 1,388 ) 368 Ireland ( 205 ) ( 341 ) ( 150 ) United Kingdom ( 233 ) 469 ( 558 ) Foreign other 674 ( 442 ) 248 ( 23,560 ) ( 27,627 ) 2,366 Total income tax provision $ 26,105 $ 16,721 $ 28,615 The effective tax rates in the various foreign jurisdictions differ from the statutory rates due primarily to changes in valuation allowances on deferred tax assets, withholding taxes incurred, and the impact of foreign exchange recognition on certain intercompany loans. The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax provision is summarized as follows (in thousands): 2023 2022 2021 Provision at Federal rate of 21 % $ 19,394 $ 12,764 $ 21,199 State income taxes, net of Federal impact 4,485 2,079 4,882 Research and experimentation credits ( 1,053 ) ( 1,560 ) ( 2,062 ) Stock award vesting ( 554 ) ( 1,355 ) ( 538 ) Tax uncertainties ( 289 ) ( 227 ) 69 Section 162(m) compensation limitation 2,955 2,326 1,610 Foreign rate differential 987 571 592 Valuation allowance for deferred tax assets ( 1,655 ) 638 1,427 Withholding tax 2,728 1,948 2,305 Convertible debt premium - ( 1,017 ) - Other ( 893 ) 554 ( 869 ) Total income tax provision $ 26,105 $ 16,721 $ 28,615 We have undistributed earnings of approximately $ 71 million from certain foreign subsidiaries. We intend to indefinitely reinvest these foreign earnings; therefore, a provision has not been made for foreign withholding taxes that might be payable upon remittance of such earnings. Determination of the amount of unrecognized deferred tax liability on unremitted foreign earnings is not practicable because of the complexities of the hypothetical calculation. Deferred Income Taxes. Net deferred income tax assets as of December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Deferred income tax assets $ 109,536 $ 81,747 Deferred income tax liabilities ( 25,351 ) ( 27,733 ) Valuation allowance ( 26,453 ) ( 27,925 ) Net deferred income tax assets $ 57,732 $ 26,089 The components of our net deferred income tax assets (liabilities) as of December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Net deferred income tax assets (liabilities): Accrued expenses and reserves $ 10,907 $ 6,206 Stock-based compensation 5,643 5,321 Software 80 ( 855 ) Client contracts and related intangibles ( 7,536 ) ( 9,577 ) Goodwill ( 14,874 ) ( 13,424 ) Net operating loss carryforwards 25,379 27,820 Property and equipment ( 2,941 ) ( 3,789 ) Deferred revenue 6,539 4,882 Debt financing 7,396 ( 88 ) Foreign exchange gain/loss 2,010 1,791 Operating lease right-of-use assets and lease liabilities 3,555 5,872 R&D 46,817 28,733 Unrecognized tax benefit 326 408 Credits and incentives 384 374 Other 500 340 Total net deferred income tax assets 84,185 54,014 Less: valuation allowance ( 26,453 ) ( 27,925 ) Net deferred income tax assets $ 57,732 $ 26,089 Beginning January 1, 2022, certain R&D expenditures are required to be capitalized in accordance with Section 174 of the Internal Revenue Code, as amended by the Tax Cuts and Jobs Act of 2017, and amortized over a 5-year period if incurred domestically or a 15-year period if incurred outside the U.S. Of the total R&D related deferred income tax assets as of December 31, 2023 , $ 46.3 million is attributable to capitalized R&D (net of applicable amortization) with the remaining amount attributable to foreign and state R&D credits. The net deferred income tax asset for debt financing increased from 2022 to 2023 primarily due to the Capped Call Transactions, discussed in Note 5. The Capped Call Transactions are amortizable beginning in 2023 through 2028 . We regularly assess the likelihood of the future realization of our deferred income tax assets. To the extent we believe that it is more likely than not that a deferred income tax asset will not be realized, a valuation allowance is established. As of December 31, 2023 , we believe we will generate sufficient taxable income in the future such that we will realize 100 % of the benefit of our U.S. Federal deferred income tax assets, thus no valuation allowance has been established. As of December 31, 2023 , we have net state and foreign deferred income tax assets (net of federal benefit related to state and foreign income tax jurisdictions) of $ 1.2 million and $ 35.9 million, respectively, and have established valuation allowances against those state and foreign income tax deferred income tax assets of $ 1.3 million and $ 25.1 million, respectively. As of December 31, 2023 and 2022 , we have an acquired U.S. Federal net operating loss (“NOL”) carryforward of approximately $ 8 million and $ 13 million, respectively, which will begin to expire in 2029 and can be utilized through 2033 . The acquired U.S. Federal NOL carryforward is attributable to the pre-acquisition periods of acquired businesses. The annual utilization of this U.S. Federal NOL carryforward is limited pursuant to Section 382 of the Internal Revenue Code of 1986, as amended. In addition, as of December 31, 2023 and 2022 , we have: (i) state NOL carryforwards of approximately $ 29 million and $ 42 million, respectively, which will expire beginning in 2024 with a portion of the losses available over an indefinite period of time ; and (ii) foreign subsidiary NOL carryforwards of approximately $ 102 million and $ 104 million, respectively, which will expire beginning in 2031 , with a portion of the losses available over an indefinite period of time. 2022 Inflation Reduction Act. In 2022, the U.S. Federal government enacted the Inflation Reduction Act (“IRA”). The IRA includes a 15% corporate alternative minimum tax effective in 2024 for certain large corporations, a one percent excise tax on net share repurchases after December 31, 2022, and several tax incentives to promote clean energy. We do not expect the provisions of the IRA to have a material impact on our financial results. Pillar Two. Numerous foreign jurisdictions have enacted or are in the process of enacting legislation to adopt a minimum effective tax rate. Pillar Two, which was established by the Organization for Economic Co-operation and Development (OECD), generally provides for a 15 percent minimum effective tax rate for multinational enterprises in every jurisdiction in which they operate. The U.S. has not yet adopted Pillar Two, however, various other governments around the world have. We continue to monitor evolving tax legislation in the jurisdictions in which we operate. Accounting for Uncertainty in Income Taxes. We are required to estimate our income tax liability in each jurisdiction in which we operate, including U.S. Federal, state, and foreign income tax jurisdictions. Various judgments and estimates are required in evaluating our tax positions and determining our provisions for income taxes. There are certain transactions and calculations for which the ultimate income tax determination may be uncertain. In addition, we may be subject to examination of our income tax returns by various foreign, federal, state, or local tax authorities, which could result in adverse outcomes. For these reasons, we establish a liability associated with unrecognized tax benefits based on estimates of whether additional taxes and interest may be due. This liability is adjusted based upon changing facts and circumstances, such as the closing of a tax audit, the expiration of a statute of limitations or the refinement of an estimate. A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands): 2023 2022 2021 Balance, beginning of year $ 2,562 $ 2,929 $ 1,393 Additions related to prior acquisitions - 2 1,508 Lapse of statute of limitations ( 409 ) 5 ( 151 ) Additions for tax positions of prior years 100 8 36 Reductions for tax positions of prior years ( 395 ) ( 382 ) ( 62 ) Additions for tax positions of current year - - 205 Balance, end of year $ 1,858 $ 2,562 $ 2,929 We recognize interest and penalties associated with our liability for unrecognized tax benefits as a component of income tax expense in our Income Statements. In addition to the $ 1.9 million, $ 2.6 million, and $ 2.9 million of liability for unrecognized tax benefits as of December 31, 2023, 2022, and 2021 , we had $ 0.9 million, $ 0.6 million, and $ 0.7 million, respectively of income tax-related accrued interest, net of any federal benefit of deduction. If recognized, the $ 1.9 million of unrecognized tax benefits as of December 31, 2023, would favorably impact our effective tax rate in future periods. We file income tax returns in the U.S. Federal jurisdiction, various U.S. state and local jurisdictions, and many foreign jurisdictions. The U.S., U.K., India, and Australia are the primary taxing jurisdictions in which we operate. The years open for audit vary depending on the taxing jurisdiction. We estimate that it is reasonably possible that the amount of gross unrecognized tax benefits will decrease by up to $ 0.7 million over the next twelve months due to completion of tax audits and the expiration of statute of limitations. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefit Plans | 10. Employee Retirement Benefit Plans We sponsor a defined contribution plan covering substantially all of our U.S.-based employees. Eligible participants may defer up to 100 % of their eligible pay, subject to certain limitations, as pre-tax, Roth, or traditional after-tax contributions. We make certain matching, and at our discretion, non-elective employer contributions to the plan. All contributions are subject to certain IRS limits. The expense related to these contributions for 2023, 2022, and 2021 was $ 12.8 million, $ 13.2 million, and $ 12.4 million, respectively. We also have defined contribution-type plans for certain of our non-U.S.-based employees. The total contributions made to these plans in 2023, 2022, and 2021 were $ 7.7 million, $ 6.6 million, and $ 6.1 million, respectively. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | 11. Commitments, Guarantees and Contingencies Service Agreements. During 2023, we extended our agreement with Ensono, Inc. (“Ensono”) to provide us outsourced computing services through September 30, 2028 . We outsource the computer processing and related services required for the operation of our SaaS platforms. Our proprietary software and other software applications are run in an outsourced data center environment in order to obtain the necessary computer processing capacity and other computer support services without us having to make the substantial capital and infrastructure investments that would be necessary for us to provide these services internally. Our customers are connected to the outsourced data center environment through a combination of private and commercially provided networks. Our SaaS platforms are generally considered to be mission critical customer management systems by our customers. As a result, we are highly dependent upon Ensono for system availability, security, and response time. Guarantees . In the ordinary course of business, we may provide guarantees in the form of bid bonds, performance bonds, or standby letters of credit. As of December 31, 2023 , we had $ 2.9 million of restricted assets used to collateralize these guarantees, with $ 0.7 million included in other current assets and $ 2.2 million included in other non-current assets. We have performance guarantees in the form of surety bonds and money transmitter bonds, both issued through a third-party that are not required to be on our Balance Sheet. As of December 31, 2023 , we had performance guarantees of $ 4.9 million. We are ultimately liable for claims that may occur against these guarantees. We have no history of material claims or are aware of circumstances that would require us to pay under any of these arrangements. We also believe that the resolution of any claim that may arise in the future, either individually or in the aggregate, would not be material to our Financial Statements. As of December 31, 2023 , we had total aggregate money transmitter bonds of $ 20.0 million outstanding. These money transmitter bonds are for the benefit of various states to comply with the states’ financial requirements and industry regulations for money transmitter licenses. Warranties. We generally warrant that our solutions and related offerings will conform to published specifications, or to specifications provided in an individual customer arrangement, as applicable. The typical warranty period is 90 days from the date of acceptance of the solution or offering. For certain service offerings we provide a warranty for the duration of the services provided. We generally warrant that those services will be performed in a professional and skillful manner. The typical remedy for breach of warranty is to correct or replace any defective deliverable, and if not possible or practical, we will accept the return of the defective deliverable and refund the amount paid under the customer arrangement that is allocable to the defective deliverable. Our contracts also generally contain limitation of damages provisions in an effort to reduce our exposure to monetary damages arising from breach of warranty claims. Historically, we have incurred minimal warranty costs, and as a result, do not maintain a warranty reserve. Solution and Services Indemnifications. Arrangements with our customers generally include an indemnification provision that will indemnify and defend a customer in actions brought against the customer that claim our products and/or services infringe upon a copyright, trade secret, or valid patent. Historically, we have not incurred any significant costs related to such indemnification claims, and as a result, do not maintain a reserve for such exposure. Claims for Company Non-performance. Our arrangements with our customers typically limit our liability for breach to a specified amount of the direct damages incurred by the customer resulting from the breach. From time-to-time, these arrangements may also include provisions for possible liquidated damages or other financial remedies for our non-performance, or in the case of certain of our solutions, provisions for damages related to service level performance requirements. The service level performance requirements typically relate to system availability and timeliness of service delivery. As of December 31, 2023, we believe we have adequate reserves, based on our historical experience, to cover any reasonably anticipated exposure as a result of our nonperformance for any past or current arrangements with our customers. Indemnifications Related to Officers and the Board of Directors. Other guarantees include promises to indemnify, defend, and hold harmless our directors, and certain officers. Such indemnification covers any expenses and liabilities reasonably incurred by a person, by reason of the fact that such person is, was, or has agreed to be a director or officer, in connection with the investigation, defense, and settlement of any threatened, pending, or contemplated action, suit, proceeding, or claim. We maintain directors’ and officers’ (“D&O”) insurance coverage to protect against such losses. We have not historically incurred any losses related to these types of indemnifications and are not aware of any pending or threatened actions or claims against any officer or member of our Board. As a result, we have not recorded any liabilities related to such indemnifications as of December 31, 2023. In addition, as a result of the insurance policy coverage, we believe these indemnification agreements are not significant to our results of operations. Legal Proceedings. From time-to-time, we are involved in litigation relating to claims arising out of our operations in the normal course of business. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Stock Repurchase Program. We currently have a stock repurchase program, approved by our Board, authorizing us to repurchase shares of our common stock from time-to-time as market and business conditions warrant (the “Stock Repurchase Program”). During 2023, our Board authorized an additional $ 100.0 million of repurchases under the Stock Repurchase Program. During 2023, 2022, and 2021 , we repurchased 2,188,000 shares of our common stock for $ 117.1 million (weighted–average price of $ 53.51 per share), 1,497,000 shares of our common stock for $ 87.9 million (weighted-average price of $ 58.71 per share), and 733,000 shares of our common stock for $ 36.0 million (weighted-average price of $ 49.13 per share), respectively. The repurchases during 2023 were executed as follows: • In August 2023, we entered into an SEC Rule 10b5-1 Plan under which we repurchased approximately 275,000 shares of our common stock for $ 15.0 million (weighted-average price of $ 54.65 per share). This plan was terminated by us in early September 2023. • In September 2023, and concurrent with the pricing of the offering of the 2023 Convertible Notes, we repurchased approximately 1,680,000 shares of our common stock for $ 90.1 million (weighted-average price of $ 53.62 per share) in privately negotiated transactions effected through one of the initial purchasers of the offering or its affiliate, as our agent. • In September 2023, we entered into a second SEC Rule 10b5-1 Plan under which we repurchased approximately 233,000 shares of our common stock for $ 12.0 million (weighted-average price of $ 51.33 per share). This plan will remain in effect, unless terminated by us or by the provisions of the plan, through the earlier of: (i) December 31, 2024; or (ii) when an aggregate purchase price of $ 100.0 million of our common stock is repurchased under the plan. As part of the 2022 IRA, effective January 1, 2023, a one percent excise tax was imposed on net share repurchases during the year. As of December 31, 2023 , we accrued $ 1.0 million for the excise tax, which is included as a cost of treasury stock, however this is not reflected in the share repurchase amounts above. As of December 31, 2023 , the total remaining value of shares available for repurchase under the Stock Repurchase Program totaled $ 95.8 million. Stock Repurchases for Tax Withholdings. In addition to the above-mentioned stock repurchases, during 2023, 2022, and 2021 , we repurchased and then cancelled approximately 182,000 shares, 138,000 shares, and 130,000 shares for $ 10.2 million, $ 8.7 million, and $ 6.3 million, respectively, of common stock from our employees in connection with minimum tax withholding requirements resulting from the vesting of restricted stock under our stock incentive plans. Cash Dividend. During 2023, 2022, and 2021 our Board approved total cash dividends of $ 1.12 per share, $ 1.06 per share, and $ 1.00 per share of common stock, totaling $ 34.3 million, $ 33.7 million, and $ 32.7 million, respectively. Warrants . In July 2014, in conjunction with the execution of an amendment to our agreement with Comcast, we issued stock warrants (the “Warrant Agreement”) for the right to purchase up to 2.9 million shares of our common stock (the “Stock Warrants”) as an additional incentive for Comcast to convert customer accounts onto our solutions based on various milestones. The Stock Warrants have a ten-year term and an exercise price of $ 26.68 per warrant. Of the total Stock Warrants issued, 1.9 million Stock Warrants have vested and been exercised. As of December 31, 2023, 1.0 million Stock Warrants remain issued, none of which have vested. The remaining unvested Stock Warrants will be accounted for as a customer contract cost asset once the performance conditions necessary for vesting are considered probable. Once vested, Comcast may exercise the Stock Warrants and elect either physical delivery of common shares or net share settlement (cashless exercise). Alternatively, the exercise of the Stock Warrants may be settled with cash based solely on our approval, or if Comcast were to beneficially own or control in excess of 19.99 % of the common stock or voting of the Company. |
Equity Compensation Plans
Equity Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation Plans | 13. Equity Compensation Plans Stock Incentive Plan . Our stockholders have approved the issuance of up to 27.9 million shares under the Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”). This includes 2.9 million shares that were approved by our stockholders at our 2023 Annual Meeting. Shares reserved under the 2005 Plan can be granted to officers and other key employees of our Company and its subsidiaries and to non-employee directors of our Company in the form of stock options, stock appreciation rights, performance unit awards, restricted stock awards, or stock bonus awards. Shares granted under the 2005 Plan in the form of a performance unit award, restricted stock award, or stock bonus award are counted toward the aggregate number of shares of common stock available for issuance under the 2005 Plan as two shares for every one share granted or issued in payment of such award. As of December 31, 2023 , 5.7 million shares were available for issuance, with 5.2 million shares available for grant. Restricted Stock . We generally issue new shares (versus treasury shares) to fulfill restricted stock award grants. Restricted stock awards are granted at no cost to the recipient. Historically, our restricted stock awards have vested annually primarily over two to four years with no restrictions other than the passage of time (i.e., the shares are released upon calendar vesting with no further restrictions) (or “Time-Based Awards”). Unvested Time-Based Awards are typically forfeited and cancelled upon termination of employment with our Company. Certain Time-Based Awards may vest (i.e., vesting accelerates) upon a change in control, as defined, the involuntary termination of employment, or death. The fair value of the Time-Based Awards (determined by using the closing market price of our common stock on the grant date) is charged to expense on a straight-line basis over the requisite service period for the entire award. We also issue restricted stock shares to key members of management that vest upon meeting pre-established financial and operational performance objectives (“Performance-Based Awards”) over a defined measurement period. The structure of the performance goals for the Performance-Based Awards has been approved by our stockholders. Certain Performance-Based Awards may vest (i.e., vesting accelerates) upon a change in control, as defined, or the involuntary termination of employment. The fair value of the Performance-Based Awards (determined by using the closing market price of our common stock on the grant date) is charged to expense on a straight-line basis over the performance period (generally two-years). Additionally, we issue restricted stock to key members of management which vest upon the achievement of specified Company market valuations and conditions ("Market-Based Awards"). During 2023 and 2022, we issued Market-Based Awards to key members of management, which vest upon meeting a relative total shareholder return performance achievement tier ("rTSR Market-Based Awards") over a three-year measurement period. Certain rTSR Market-Based Awards may vest (i.e., vesting accelerates) upon a change in control, as defined, or the involuntary termination of employment. The fair value of the rTSR Market-Based Awards (determined using a Monte Carlo valuation method) is charged to expense on a straight-line basis over a three-year performance period. A summary of our unvested restricted stock activity during 2023 is as follows (shares in thousands): Year Ended December 31, 2023 Shares Weighted- Unvested awards, beginning 1,147 $ 53.34 Awards granted 720 52.09 Awards forfeited/cancelled ( 112 ) 53.61 Awards vested ( 508 ) 50.52 Unvested awards, ending 1,247 $ 53.61 The weighted-average grant date fair value per share of restricted stock shares granted during 2023, 2022, and 2021 was $ 52.09 , $ 63.25 , and $ 48.82 , respectively. The total market value of restricted stock shares vesting during 2023, 2022, and 2021 was $ 28.0 million, $ 26.4 million, and $ 21.0 million, respectively. 1996 Employee Stock Purchase Plan. As of December 31, 2023 , we have an employee stock purchase plan whereby 2.9 million shares of our common stock have been reserved for sale to our U.S. employees through payroll deductions. The price for shares purchased under the plan is 85 % of the market value on the last day of the purchase period. Purchases are made at the end of each month. During 2023, 2022, and 2021 , 73,982 shares, 58,362 shares, and 64,342 shares, respectively, were purchased under the plan for $ 3.3 million ($ 39.83 to $ 50.72 per share), $ 3.0 million ($ 44.95 to $ 55.46 per share), and $ 2.6 million ($ 36.63 to $ 48.98 per share), respectively. As of December 31, 2023 , 1.1 million shares remain eligible for purchase under the plan. Stock-Based Compensation Expense. We recorded stock-based compensation expense of $ 29.0 million, $ 27.2 million, and $ 21.4 million, respectively, for 2023, 2022, and 2021. As of December 31, 2023 , there was $ 35.8 million of total compensation cost related to unvested awards not yet recognized. This amount, excluding the impact of forfeitures, is expected to be recognized over a weighted-average period of 1.7 years. We recorded a deferred income tax benefit related to stock-based compensation expense during 2023, 2022, and 2021 , of $ 6.0 million, $ 5.7 million, and $ 4.9 million, respectively. The actual income tax benefit realized for the tax deductions from the vesting of restricted stock for 2023, 2022, and 2021 , totaled $ 4.8 million, $ 4.5 million, and $ 4.4 million, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Principles of Consolidation | Principles of Consolidation. Our Financial Statements include all of our accounts and our subsidiaries’ accounts. All material intercompany accounts and transactions have been eliminated. |
Translation of Foreign Currency | Translation of Foreign Currency. Our foreign subsidiaries generally use the local currency of the countries in which they operate as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue, expenses, and cash flows are translated at the average exchange rates prevailing during the period. Foreign currency translation adjustments are included in comprehensive income in stockholders’ equity. Foreign currency transaction gains and losses are included in the determination of net income. |
Use of Estimates in Preparation of Our Financial Statements | Use of Estimates in Preparation of Our Financial Statements. The preparation of our Financial Statements requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our Financial Statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more critical accounting estimates and related assumptions that may affect our financial position and results of operations are in the areas of: (i) revenue recognition; (ii) impairment assessments of long-lived assets; (iii) income taxes; and (iv) loss contingencies. |
Revenue Recognition | Revenue Recognition. Our revenue from customer contracts is measured based on consideration specified in our contracts as discussed further below. We recognize revenue for our products and services separately if there are distinct performance obligations. A product or service, or group of products or services, has a distinct performance obligation if it is separately identifiable from other items in the context of the contract and if our customer can benefit from the product or service on their own or with other resources that are readily available to that customer. We recognize revenue when we satisfy our performance obligations by transferring control of a particular product or service, or group of products or services, to our customers, as described in more detail below. Taxes assessed on our products and services based on governmental authorities at the time of invoicing are generally excluded from our revenue. Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2023 , our aggregate amount of the transaction price allocated to the remaining performance obligations was approximately $ 1.5 billion, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize over 75 % of this amount by the end of 2026 , with the remaining amount recognized by the end of 2036 . We have excluded from this amount variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied. The majority of our future revenue is related to our SaaS and related solutions customer contracts that includes variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2025 through 2036 . Disaggregation of Revenue The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Revenue: SaaS and related solutions $ 1,024,572 $ 956,995 $ 926,290 Software and services 98,078 87,247 72,818 Maintenance 46,608 45,510 47,379 Total revenue $ 1,169,258 $ 1,089,752 $ 1,046,487 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for 2023, 2022, and 2021, as a percentage of our total revenue, was as follows: 2023 2022 2021 Americas (principally the U.S.) 86 % 85 % 85 % Europe, Middle East, and Africa (principally Europe) 10 % 11 % 11 % Asia Pacific 4 % 4 % 4 % Total revenue 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in markets including retail, financial services, healthcare, insurance, and government entities. Revenue by customer vertical for 2023, 2022, and 2021, as a percentage of our total revenue, was as follows: 2023 2022 2021 Broadband/Cable/Satellite 52 % 54 % 57 % Telecommunications 20 % 20 % 19 % Other 28 % 26 % 24 % Total revenue 100 % 100 % 100 % |
Billed and Unbilled Accounts Receivable | Billed and Unbilled Accounts Receivable. Billed accounts receivable represents our unconditional rights to consideration. Once invoiced, our payment terms are generally between 30 - 60 days . We rarely have contracts with financing arrangements. Unbilled accounts receivable represents our rights to consideration for work completed but not billed. Unbilled accounts receivable is transferred to billed accounts receivable when the rights become unconditional, which is generally at the time of invoicing. The following table rolls forward our unbilled accounts receivable from January 1, 2022 to December 31, 2023 (in thousands): Unbilled Receivables Beginning Balance, January 1, 2022 $ 35,802 Recognized during the period 285,562 Reclassified to receivables ( 265,707 ) Other ( 2,827 ) Ending Balance, December 31, 2022 52,830 Recognized during the period 287,844 Reclassified to receivables ( 258,792 ) Other 281 Ending Balance, December 31, 2023 $ 82,163 |
Deferred Revenue | Deferred Revenue. Deferred revenue represents consideration received from customers in advance of services being performed. The following table rolls forward our deferred revenue from January 1, 2022 to December 31, 2023 (in thousands): Deferred Revenue Beginning Balance, January 1, 2022 $ ( 73,347 ) Revenue recognized that was included in deferred revenue at the beginning 53,947 Consideration received in advance of services performed net of revenue ( 51,432 ) Other 2,808 Ending Balance, December 31, 2022 ( 68,024 ) Revenue recognized that was included in deferred revenue at the beginning 45,699 Consideration received in advance of services performed net of revenue ( 55,920 ) Other 599 Ending Balance, December 31, 2023 $ ( 77,646 ) |
Postage | Postage. We pass through to our customers the cost of postage that is incurred on behalf of those customers, and typically require an advance payment on expected postage costs. These advance payments are included in customer deposits in the accompanying Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”) and are classified as current liabilities regardless of the contract period. We net the cost of postage against the postage reimbursements for those customers where we require advance deposits and include the net amount (which is not material) in SaaS and related solutions revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less as of the date of purchase to be cash equivalents. As of December 31, 2023 and 2022, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. For the cash and cash equivalents denominated in foreign currencies and/or located outside the U.S., we do not anticipate any material amounts being unavailable for use in running our business, but may face limitations on moving cash out of certain foreign jurisdictions due to currency controls and potential negative economic consequences. Restricted Cash . Restricted cash includes cash that is legally or contractually restricted, as well as our settlement and merchant reserve assets (discussed below). The nature of the restrictions on our settlement and merchant reserve assets consists of contractual restrictions with the merchants and restrictions arising from our policy and intention. It has historically been our policy to segregate settlement and merchant reserve assets from our operating cash balances and our intention is to continue to do so. Our restricted cash mainly serves to collateralize bank guarantees, performance guarantees, and certain outstanding letters of credit. As of December 31, 2023 , we had $ 2.9 million of restricted cash included in other current and non-current assets in our Balance Sheets. As of December 31, 2022 , we had $ 1.0 million of restricted cash included in cash and cash equivalents in our Balance Sheets. |
Short-term Investments and Other Financial Instruments | Short-term Investments and Other Financial Instruments . Our financial instruments as of December 31, 2023 and 2022 include cash and cash equivalents, short-term investments, settlement and merchant reserve assets and liabilities, accounts receivable, accounts payable, and debt. Due to their short maturities, the carrying amounts of cash equivalents, settlement and merchant reserve assets and liabilities, accounts receivable, and accounts payable approximate their fair value. Our short-term investments and certain cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. Proceeds from the sale/maturity of short-term investments in 2023, 2022, and 2021 were $ 0.1 million, $ 28.0 million, and $ 90.5 million, respectively. The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): December 31, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 5,484 $ - $ 5,484 $ 5,318 $ - $ 5,318 Short-term investments: Asset-backed securities - - - - 71 71 Total $ 5,484 $ - $ 5,484 $ 5,318 $ 71 $ 5,389 Valuation inputs used to measure the fair value of our money market funds were derived from quoted market prices. The fair value of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): December 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 2023 Convertible Notes (par value) $ 425,000 $ 428,506 $ - $ - 2021 Credit Agreement (carrying value including Term Loan 133,125 133,125 140,625 140,625 Revolver - - 275,000 275,000 The fair value of our convertible notes was estimated based upon quoted market prices or recent sales activity, while the fair value of our credit agreement was estimated using a discounted cash flow methodology, both of which are considered Level 2 inputs . See Note 5 for discussion regarding our debt. |
Settlement and Merchant Reserve Assets and Liabilities | Settlement and Merchant Reserve Assets and Liabilities. Settlement assets and settlement liabilities represent cash collected on behalf of merchants via payments processing services which is held for an established holding period until settlement with the customer. The holding period is generally one to four business days depending on the payment model and contractual terms with the customer. During the holding period, cash is subject to restriction and segregation based on the nature of our custodial relationship with the merchants. Should we fail to remit these funds to our merchants, the merchant’s sole recourse would be against us, for payment. These rights and obligations are set forth in the contracts between us and the merchants. Settlement assets are held with various major financial institutions and a corresponding liability is recorded for the amounts owed to the customer. At any given time, there may be differences between the cash held and the corresponding liability due to the timing of operating-related cash transfers. Merchant reserve assets/liabilities represent deposits collected from merchants to mitigate our risk of loss due to nonperformance of settlement obligations initiated by those merchants using our payments processing services, or non-payment by customers for services rendered by us. We perform a credit risk evaluation on each customer based on multiple criteria, which provides the basis for the deposit amount required for each merchant. For the duration of our relationship with each merchant, we hold their reserve deposits with major financial institutions. We hold these funds in separate accounts and are offset by corresponding liabilities. The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands): December 31, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 260,712 $ 259,825 $ 219,368 $ 218,525 Merchant reserve assets/liabilities 13,987 13,992 19,285 19,285 Total $ 274,699 $ 273,817 $ 238,653 $ 237,810 |
Concentrations of Credit Risk | Concentrations of Credit Risk. In the normal course of business, we are exposed to credit risk. The principal concentrations of credit risk relate to cash deposits, cash equivalents, and accounts receivable. We regularly monitor credit risk exposures and take steps to mitigate the likelihood of these exposures resulting in a loss. We hold our cash deposits and cash equivalents with financial institutions we believe to be of sound financial condition. We generally do not require collateral or other security to support accounts receivable. We evaluate the creditworthiness of our customers in conjunction with our revenue recognition process, as well as through our ongoing collectability assessment process for accounts receivable. We maintain an allowance for expected losses based upon factors surrounding the credit risk of specific customers, historical trends, and other information. We use various judgments and estimates in determining the adequacy of the allowance for expected losses. See Note 3 for additional details of our concentration of accounts receivable. The activity in our allowance for expected losses is as follows (in thousands): 2023 2022 2021 Balance, beginning of year $ 5,528 $ 4,250 $ 3,628 Additions to expense 1,765 1,295 1,102 Write-offs ( 1,767 ) ( 8 ) ( 466 ) Other ( 94 ) ( 9 ) ( 14 ) Balance, end of year $ 5,432 $ 5,528 $ 4,250 |
Property and Equipment | Property and Equipment . Property and equipment are recorded at cost (or at estimated fair value if acquired in a business combination) and are depreciated over their estimated useful lives ranging from three to ten years . Leasehold improvements are depreciated over the shorter of their economic life or the lease term. Depreciation expense is computed using the straight-line method for financial reporting purposes. Depreciation expense for property and equipment is reflected in our Consolidated Statements of Income ("Income Statement" or "Income Statements") separately in the aggregate and is not included in the cost of revenue or the other components of operating expenses, except for accelerated depreciation expense that is included in our restructuring and reorganization charges (see Note 8 ). |
Software | Software. We expend substantial amounts on R&D, particularly for new solutions and enhancements of existing products and services. For development of software solutions that are to be licensed by us, we expense all costs related to the development of the software until technological feasibility is established. For development of software to be used internally (e.g., cloud-based systems software), we expense all costs prior to the application development stage. During 2023, 2022, and 2021 , we expended $ 143.2 million, $ 137.9 million, and $ 134.7 million, respectively, on R&D projects. We did not capitalize any R&D costs in 2023, 2022, and 2021, as the costs subject to capitalization during these periods were not material. We did not have any capitalized R&D costs included in our December 31, 2023 and 2022 Balance Sheets. |
Realizability of Long-Lived Assets | Realizability of Long-Lived Assets. We evaluate our long-lived assets, other than goodwill, for possible impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. A long-lived asset is impaired if estimated future undiscounted cash flows associated with that asset are insufficient to recover the carrying amount of the long-lived asset. If deemed impaired, the long-lived asset is written down to its estimated fair value. |
Goodwill | Goodwill. We evaluate our goodwill for impairment on an annual basis, as well as we may evaluate our goodwill on a more periodic basis (e.g., quarterly) if events occur or circumstances change that could indicate a potential impairment may have occurred. Goodwill is considered impaired if the carrying value of the reporting unit which includes the goodwill is greater than the estimated fair value of the reporting unit. |
Contingencies | Contingencies. We accrue for a loss contingency when: (i) it is probable that an asset has been impaired, or a liability has been incurred; and (ii) the amount of the loss can be reasonably estimated. The determination of loss contingencies is subject to various judgments and estimates. We do not record the benefit from a gain contingency until the benefit is realized. |
Earnings Per Common Share | Earnings Per Common Share (“EPS”). Basic and diluted EPS amounts are presented on the face of our Income Statements. The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): 2023 2022 2021 Basic weighted-average common shares 29,938 31,028 31,776 Dilutive effect of restricted common stock 177 270 234 Diluted weighted-average common shares 30,115 31,298 32,010 The dilutive effect of restricted common stock is computed using the treasury stock method. The dilutive effect of the 2023 Convertible Notes is computed using the if-converted method and will only have an effect in those quarterly periods in which our average stock price exceeds the current effective conversion price. Potentially dilutive common shares related to non-participating unvested restricted stock and stock warrants were excluded from the computation of diluted EPS, as the effect was anti-dilutive, and were not material in any period presented. Stock warrants (see Note 12 ) will only have a dilutive effect upon vesting in those periods in which our average stock price exceeds the exercise price of $ 26.68 per warrant. |
Stock-Based Compensation | Stock-Based Compensation . Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation cost at the grant date of the award, based on the estimated fair value of the award, and recognize the cost (net of estimated forfeitures) over the requisite service period. |
Income Taxes | Income Taxes. We account for income taxes using the asset and liability method. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. |
Accounting Pronouncements | Accounting Pronouncements Adopted. Effective January 1, 2022, we adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. (“ASU 2020-06”), which simplified the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. ASU 2020-06 also amended the related EPS guidance. We adopted ASU 2020-06 using the modified retrospective transition method and recorded a $ 9.8 million cumulative-effect adjustment to our accumulated earnings and additional paid-in capital balances. Accounting Pronouncements Issued but Not Yet Effective. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) , (“ASU 2023-07”), which enhances reportable segment disclosure requirements in part by requiring entities to disclose significant expenses related to their reportable segments. ASU 2023-07 also requires disclosure of the title and position of the company’s Chief Operating Decision Maker (“CODM”) and how the CODM uses financial reporting to assess segment performance and allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023. We are in the process of evaluating what impact this ASU will have on our Financial Statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires entities to disclose more detailed information about their effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are in the process of evaluating what impact this ASU will have on our Financial Statements and disclosures. |
SaaS and Related Solutions Revenue | |
Revenue Recognition | SaaS and Related Solutions Our SaaS and related solutions include: (i) our revenue management platforms and various related ancillary services; (ii) our managed services offering in which we operate software solutions (primarily our software solutions) on behalf of our customers; and (iii) our SaaS payments platform. We contract for our revenue management platform solutions using long-term arrangements whose terms have typically ranged from three to five years . These arrangements consist of a series of multiple services delivered daily or monthly, to include: (i) revenue management platforms; (ii) related products and services (e.g., field service management tools, consumer credit verifications, etc.); (iii) digital enablement and delivery functions; and (iv) customer statement invoice printing and mailing services. The fees for these services typically are billed to our customers monthly based upon actual monthly volumes and/or usage of services (e.g., the number of customer accounts maintained on our solutions, the number of transactions processed on our solutions, and/or the quantity and content of the monthly statements and mailings processed through our solutions). For revenue management platform solution contracts, the total contract consideration (including impacts of discounts, incentives, and/or service level agreements) is primarily variable dependent upon actual monthly volumes and/or usage of services; however, these contracts can also include ancillary fixed consideration in the form of one-time, monthly, or annual fees. The pricing of products and services in these contracts is generally at stand-alone selling price, with no allocation of value between the individual performance obligations. In situations where we do an allocation, we determine stand-alone selling price based on established pricing and/or cost, plus an applicable margin. Revenue is generally recognized based on activities performed over a series of daily or monthly periods. We contract for managed services using long-term arrangements whose terms have typically ranged from three to five years . Under managed services agreements, we operate software products (primarily our software solutions) on behalf of our customers: (i) out of a customer’s data center; (ii) out of a data center we own and operate; or (iii) out of a third-party data center we contract with for such services. Managed services can also include us providing other services, such as transitional services, fulfillment, remittance processing, operational consulting, back office, and end-user billing services. For managed services contracts, the total contract consideration is typically a fixed monthly fee, but these contracts may also have variable fee components. The fees for these services typically are billed to our customers on a monthly basis. Unless managed services are included with a software license contract (as discussed further below), there is generally only one performance obligation and revenue is recognized for these arrangements on a ratable basis as the services are performed. Our contracts for SaaS payments platform solutions are generally month-to-month or fixed term with automatic renewals. Services provided under these arrangements primarily include Automated Clearing House (“ACH”) transaction processing, credit/debit card processing, web-based and telephone payment processing, and real-time check verification and authentication services. The fees for these services typically are billed on a monthly basis. Our SaaS payments platform solutions are comprised of one performance obligation. Revenue for these services is based primarily on a fee per transaction or a percentage of the transaction principal, and is recognized as delivered over a series of daily service periods. Transaction fees collected from merchants are recognized as revenue on a gross basis when we are the principal in completing the payment processing transaction. As a principal to the transaction, we control the service of processing payments on our platform. We bear primary responsibility for the fulfillment of the payment service, contract directly with the merchant, and have full discretion in determining the fee charged to our customers which is independent of the costs we incur when we utilize payment processors or other financial institutions to perform services on our behalf. We therefore bear full margin risk when completing a payment processing transaction. Transaction fees are primarily comprised of fees paid to third-party payment processors and other financial institutions and interchange fees paid in conjunction with the delivery of service to customers under our payments services contracts. These fees are recognized in cost of revenue. Fees related to set-up or implementation activities for both SaaS and related solutions and managed services contracts are generally deferred and recognized ratably over the related service period to which the activities relate. Depending on the significance of variable consideration, number of products/services, complex pricing structures, and long-term nature of these types of contracts, the judgments and estimates made in this area could have a significant effect on the amount and timing of revenue recognized in any period. |
Software and Services Revenue | |
Revenue Recognition | Software and Services Our software and services revenue relates primarily to: (i) software license sales on either a perpetual or term license basis; and (ii) professional services to implement the software. Our software and services contracts are often contracted in bundled arrangements that include the software license and related implementation services, and may also include maintenance, managed services, and/or additional professional services. For our software arrangements, total contract consideration is allocated between the separate performance obligations based on stand-alone selling prices for software licenses, cost plus applicable margin for third-party licenses and/or services, and established pricing for maintenance. The initial sale of our software products generally requires significant production, modification, or customization, such that the delivery of the software license and related professional services required to implement the software represent one combined performance obligation that is satisfied over time based on hours worked (i.e., hours-based method). We are using hours worked on the project, compared against expected hours to complete the project, as the measure to determine progress toward completion as we believe it is the most appropriate metric to measure such progress. The software and services fees are generally fixed fees billed to our customers on a milestone or date basis. The determination of the performance obligations and allocation of value for software license arrangements require significant judgment. We generally determine stand-alone selling prices using pricing calculations (which include regional market factors) for our software license fees and maintenance, and cost-plus margins for services. Additionally, our use of an hours-based method of accounting for software license and other professional services performance obligations that are satisfied over time requires estimates of the expected hours necessary to complete a project. Changes in estimates as a result of additional information or experience on a project as work progresses are inherent characteristics of this method of revenue recognition as we are exposed to business risks in completing these types of performance obligations. The estimation process to support our hours-based recognition method is more difficult for projects of greater length and/or complexity. The judgments and estimates made for these types of obligations could: (i) have a significant effect on revenue recognized in any period by changing the amount and/or the timing of the revenue recognized; and/or (ii) impact the expected profitability of a project, including whether an overall loss on an arrangement has occurred. To mitigate the inherent risks in using this hours-based method, we track our current hours expended against our estimates on a periodic basis and continually reevaluate the appropriateness of our estimates. In certain instances, we sell software license volume upgrades, which provide our customers with the right to use our software to process higher transaction volume levels. In these instances, we analyze the contract to determine if the volume upgrade is a separate performance obligation and if so, we recognize the value associated with the software license as revenue on the effective date of the volume upgrade. A portion of our professional services revenue is contracted separately (e.g., business consulting services, etc.). Such contracts can either be on a fixed-price or time-and-materials basis. Revenue from fixed-price professional service contracts is recognized using an estimated hours-based method (discussed above), as these professional services represent a performance obligation that is satisfied over time. Revenue from professional services contracts billed on a time-and-materials basis is recognized as the services are performed. |
Maintenance Revenue | |
Revenue Recognition | Maintenance Our maintenance revenue relates primarily to support of our software once it has been implemented and placed in service. Maintenance revenue is recognized ratably over the software maintenance period as services are provided. Our maintenance consists primarily of customer and product support, technical updates (e.g., bug fixes, etc.), and unspecified upgrades or enhancements to our software products. If specified upgrades or enhancements are offered in a contract, they are accounted for as a separate performance obligation. Maintenance may be invoiced to our customers on a monthly, quarterly, or annual basis. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Revenue Disaggregated by Revenue Type, Geographic Region and Customer | The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Revenue: SaaS and related solutions $ 1,024,572 $ 956,995 $ 926,290 Software and services 98,078 87,247 72,818 Maintenance 46,608 45,510 47,379 Total revenue $ 1,169,258 $ 1,089,752 $ 1,046,487 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for 2023, 2022, and 2021, as a percentage of our total revenue, was as follows: 2023 2022 2021 Americas (principally the U.S.) 86 % 85 % 85 % Europe, Middle East, and Africa (principally Europe) 10 % 11 % 11 % Asia Pacific 4 % 4 % 4 % Total revenue 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in markets including retail, financial services, healthcare, insurance, and government entities. Revenue by customer vertical for 2023, 2022, and 2021, as a percentage of our total revenue, was as follows: 2023 2022 2021 Broadband/Cable/Satellite 52 % 54 % 57 % Telecommunications 20 % 20 % 19 % Other 28 % 26 % 24 % Total revenue 100 % 100 % 100 % |
Rollforward of Unbilled Accounts Receivable | The following table rolls forward our unbilled accounts receivable from January 1, 2022 to December 31, 2023 (in thousands): Unbilled Receivables Beginning Balance, January 1, 2022 $ 35,802 Recognized during the period 285,562 Reclassified to receivables ( 265,707 ) Other ( 2,827 ) Ending Balance, December 31, 2022 52,830 Recognized during the period 287,844 Reclassified to receivables ( 258,792 ) Other 281 Ending Balance, December 31, 2023 $ 82,163 |
Rollforward of Deferred Revenue | The following table rolls forward our deferred revenue from January 1, 2022 to December 31, 2023 (in thousands): Deferred Revenue Beginning Balance, January 1, 2022 $ ( 73,347 ) Revenue recognized that was included in deferred revenue at the beginning 53,947 Consideration received in advance of services performed net of revenue ( 51,432 ) Other 2,808 Ending Balance, December 31, 2022 ( 68,024 ) Revenue recognized that was included in deferred revenue at the beginning 45,699 Consideration received in advance of services performed net of revenue ( 55,920 ) Other 599 Ending Balance, December 31, 2023 $ ( 77,646 ) |
Fair Value Measurements | The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): December 31, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 5,484 $ - $ 5,484 $ 5,318 $ - $ 5,318 Short-term investments: Asset-backed securities - - - - 71 71 Total $ 5,484 $ - $ 5,484 $ 5,318 $ 71 $ 5,389 |
Carrying Value and Estimated Fair Value of Debt | We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): December 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 2023 Convertible Notes (par value) $ 425,000 $ 428,506 $ - $ - 2021 Credit Agreement (carrying value including Term Loan 133,125 133,125 140,625 140,625 Revolver - - 275,000 275,000 The fair value of our convertible notes was estimated based upon quoted market prices or recent sales activity, while the fair value of our credit agreement was estimated using a discounted cash flow methodology, both of which are considered Level 2 inputs |
Schedule of Settlement and Merchant Reserve Assets and Liabilities | The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands): December 31, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 260,712 $ 259,825 $ 219,368 $ 218,525 Merchant reserve assets/liabilities 13,987 13,992 19,285 19,285 Total $ 274,699 $ 273,817 $ 238,653 $ 237,810 |
Allowance for Doubtful Accounts Receivable | The activity in our allowance for expected losses is as follows (in thousands): 2023 2022 2021 Balance, beginning of year $ 5,528 $ 4,250 $ 3,628 Additions to expense 1,765 1,295 1,102 Write-offs ( 1,767 ) ( 8 ) ( 466 ) Other ( 94 ) ( 9 ) ( 14 ) Balance, end of year $ 5,432 $ 5,528 $ 4,250 |
Reconciliation of the Basic and Diluted EPS denominators | The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): 2023 2022 2021 Basic weighted-average common shares 29,938 31,028 31,776 Dilutive effect of restricted common stock 177 270 234 Diluted weighted-average common shares 30,115 31,298 32,010 The dilutive effect of restricted common stock is computed using the treasury stock method. The dilutive effect of the 2023 Convertible Notes is computed using the if-converted method and will only have an effect in those quarterly periods in which our average stock price exceeds the current effective conversion price. |
Segment Reporting and Signifi_2
Segment Reporting and Significant Concentration (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenue from Significant Customers | Revenue from these customers represented the following percentages of our total revenue for the following years: 2023 2022 2021 Charter 21 % 20 % 21 % Comcast 18 % 20 % 21 % |
Summary of Net Billed Accounts Receivable from Significant Customers | As of December 31, 2023 and 2022, the percentage of net billed accounts receivable balances attributable to these customers were as follows: As of December 31, 2023 2022 Charter 23 % 22 % Comcast 17 % 17 % |
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Property and Equipment | Property and Equipment. Property and equipment as of December 31, 2023 and 2022 consisted of the following (in thousands, except years): Useful Lives (Years) December 31, 2023 December 31, 2022 Computer equipment 3 - 6 $ 89,946 $ 85,432 Leasehold improvements 10 27,134 23,996 Operating equipment 3 - 8 67,825 65,949 Furniture and fixtures 8 2,456 1,876 187,361 177,253 Less – accumulated depreciation ( 121,816 ) ( 105,466 ) Property and equipment, net $ 65,545 $ 71,787 |
Rollforward of Goodwill | Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill for 2022 and 2023 is as follows (in thousands): January 1, 2022 balance $ 321,330 Adjustments related to prior acquisitions 1,896 Impairment charge related to MobileCard Holdings, LLC ( 7,211 ) Effects of changes in foreign currency exchange rates ( 11,979 ) December 31, 2022 balance 304,036 Adjustments related to prior acquisitions ( 20 ) Impairment charge related to Keydok, LLC ( 1,118 ) Effects of changes in foreign currency exchange rates 5,698 December 31, 2023, balance $ 308,596 The 2022 adjustments related to prior acquisitions are primarily a result of the finalization of the purchase accounting for MobileCard Holdings, LLC (“MobileCard”) and DGIT Systems Pty Ltd (“DGIT”). See Notes 7 and 8 for further discussion, to include the decisions to dissolve the MobileCard and Keydok, LLC (“Keydok”) businesses, resulting in the impairment charges recorded above. |
Summary of Carrying Value of Other Intangible Assets | Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist of acquired customer contracts and software. Acquired Customer Contracts. As of December 31, 2023 and 2022, the carrying values of our acquired customer contracts were as follows (in thousands): December 31, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Acquired customer contracts (1) $ 162,348 $ ( 126,469 ) $ 35,879 $ 165,497 $ ( 120,080 ) $ 45,417 Software . Software consists of: (i) software and similar intellectual property rights from various business acquisitions; and (ii) internal use software. As of December 31, 2023 and 2022, the carrying values of our software assets were as follows (in thousands): December 31, 2023 December 31, 2022 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Acquired software (2) $ 84,031 $ ( 77,520 ) $ 6,511 $ 83,543 $ ( 74,578 ) $ 8,965 Internal use software (3) 87,794 ( 80,081 ) 7,713 89,568 ( 75,759 ) 13,809 Total software $ 171,825 $ ( 157,601 ) $ 14,224 $ 173,111 $ ( 150,337 ) $ 22,774 |
Summary of Aggregate Amortization Related to Intangible Assets | The aggregate amortization related to acquired customer contracts included in our operations for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Acquired customer contracts (1) $ 9,775 $ 11,605 $ 9,240 (1) Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements. The aggregate amortization related to software included in our operations for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Acquired software amortization (2) $ 2,410 $ 2,750 $ 2,405 Internal use software amortization (3) 13,624 14,140 13,316 Total software amortization $ 16,034 $ 16,890 $ 15,721 (2) Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years . The amortization of acquired software is reflected as a cost of revenue in our Income Statements. (3) Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years . |
Summary of Carrying Values of Customer Contract Cost Assets | Customer Contract Costs . As of December 31, 2023 and 2022, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands): December 31, 2023 December 31, 2022 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Amount Amortization Amount Amount Amortization Amount Customer contract incentives (4) $ 7,027 $ ( 4,935 ) $ 2,092 $ 6,626 $ ( 3,798 ) $ 2,828 Capitalized costs (5) 71,976 ( 29,027 ) 42,949 63,081 ( 20,459 ) 42,622 Capitalized commission fees (6) 17,512 ( 8,132 ) 9,380 15,629 ( 6,344 ) 9,285 Total customer contract costs $ 96,515 $ ( 42,094 ) $ 54,421 $ 85,336 $ ( 30,601 ) $ 54,735 |
Summary of Aggregate Amortization Related to Customer Contract Costs | The aggregate amortization related to our customer contract costs included in our operations for 2023, 2022, and 2021 was as follows (in thousands): 2023 2022 2021 Customer contract incentives amortization (4) $ 1,136 $ 792 $ 687 Capitalized costs amortization (5) 15,422 15,918 17,955 Capitalized commission fees amortization (6) 3,733 3,028 2,576 Total customer contract costs amortization $ 20,291 $ 19,738 $ 21,218 (4) Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer accounts on, our solutions. Customer contract incentives are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2023 , have termination dates that range from 2024 to 2027 . The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements. (5) Capitalized costs are related to: (i) customer conversion/set-up activities; and (ii) direct material costs to fulfill long-term revenue management solutions and managed services arrangements. These costs are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023 , range from 2024 to 2036 , and are included in cost of revenue in our Income Statements. (6) Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023 , range from 2024 to 2029 , and are included in Selling, General, and Administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | As of December 31, 2023 and 2022, our long-term debt was as follows (in thousands): December 31, 2023 December 31, 2022 2023 Convertible Notes: 2023 Convertible Notes – senior unsecured convertible notes, due September 2028 , cash interest at 3.875 % $ 425,000 $ - Less – deferred financing costs ( 13,216 ) - 2023 Convertible Notes, net of unamortized discounts 411,784 - 2021 Credit Agreement: 2021 Term Loan, due September 2026 , interest at adjusted SOFR plus 6.823 % at December 31, 2023) 133,125 140,625 Less – deferred financing costs ( 2,412 ) ( 2,656 ) 2021 Term Loan, net of unamortized discounts 130,713 137,969 $ 450 million revolving loan facility, due September 2026 , interest at adjusted - 275,000 Total debt, net of unamortized discounts 542,497 412,969 Current portion of long-term debt, net of unamortized discounts ( 7,500 ) ( 37,500 ) Long-term debt, net of unamortized discounts $ 534,997 $ 375,469 |
Estimated Maturities on Long-Term Debt | As of December 31, 2023 , the maturities of our long-term debt, based upon: (i) the maturity date of the 2023 Convertible Notes; and (ii) the mandatory repayment schedule for the 2021 Term Loan, were as follows (in thousands): 2024 2025 2026 2027 2028 Total 2023 Convertible Notes $ - $ - $ - $ - $ 425,000 $ 425,000 2021 Term Loan 7,500 7,500 118,125 - - 133,125 Total long-term debt repayments $ 7,500 $ 7,500 $ 118,125 $ - $ 425,000 $ 558,125 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense for 2023, 2022, and 2021 were as follows (in thousands): 2023 2022 2021 Operating lease expense $ 16,073 $ 21,516 $ 26,131 Variable lease expense 3,299 4,103 4,530 Short-term lease expense 1,115 1,105 582 Sublease income ( 2,691 ) ( 2,246 ) ( 2,596 ) Total net lease expense $ 17,796 $ 24,478 $ 28,647 |
Summary of Other Information Related to Operating Leases | Other information related to leases for 2023, 2022, and 2021 was as follows (in thousands, except term and discount rate): 2023 2022 2021 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of $ 20,559 $ 21,125 $ 23,272 Right-of-use assets obtained in exchange for new 2,787 3,817 3,909 Weighted-average remaining lease term - operating 58 months 54 months 59 months Weighted-average discount rate - operating 3.95 % 3.84 % 3.30 % |
Summary of Future Minimum Lease Payments Under Non-cancellable Operating Leases | Future minimum lease payments under non-cancelable leases as of December 31, 2023 were as follows (in thousands): 2024 $ 16,957 2025 13,173 2026 5,860 2027 5,119 2028 4,933 Thereafter 9,437 Total future minimum lease payments (1) 55,479 Less: Interest (2) ( 5,173 ) Total $ 50,306 Current operating lease liabilities $ 15,946 Non-current operating lease liabilities 34,360 Total $ 50,306 (1) For leases commencing prior to 2019, minimum lease payments exclude payments for real estate taxes and non-lease components. (2) We use our functional currency adjusted incremental borrowing rate for the discount rate. |
Restructuring and Reorganizat_2
Restructuring and Reorganization Charges (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity in Business Restructuring and Reorganization Reserves | The activity in the business restructuring and reorganization reserves during 2023, 2022, and 2021 is as follows (in thousands): Termination Benefits Other Total January 1, 2021, balance $ 933 $ - $ 933 Charged to expense during period 3,419 1,451 4,870 Cash payments ( 3,516 ) 210 ( 3,306 ) Adjustment for accelerated depreciation - ( 1,246 ) ( 1,246 ) Adjustment for asset impairment - ( 415 ) ( 415 ) Other ( 161 ) - ( 161 ) December 31, 2021, balance 675 - 675 Charged to expense during period 7,720 38,588 46,308 Cash payments ( 7,665 ) ( 4,098 ) ( 11,763 ) Adjustment for accelerated depreciation - ( 30,121 ) ( 30,121 ) Adjustment for asset impairment - ( 4,369 ) ( 4,369 ) Other 1,761 - 1,761 December 31, 2022, balance 2,491 - 2,491 Charged to expense during period 5,128 11,208 16,336 Cash payments ( 7,027 ) ( 5,386 ) ( 12,413 ) Adjustment for accelerated depreciation - ( 396 ) ( 396 ) Adjustment for asset impairment - ( 1,675 ) ( 1,675 ) Adjustment for gain on lease modifications - 4,349 4,349 Other 842 - 842 December 31, 2023, balance $ 1,434 $ 8,100 $ 9,534 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Net Income from Continuing Operations Before Income Taxes | Income Tax Provision. The components of net income before income taxes are as follows (in thousands): 2023 2022 2021 Domestic $ 72,769 $ 53,251 $ 98,261 Australia 854 ( 5,851 ) ( 3,429 ) India 10,008 9,517 5,873 Ireland ( 236 ) ( 3,391 ) 1,627 United Kingdom 2,029 2,533 ( 5,734 ) Foreign other 6,927 4,722 4,348 Total $ 92,351 $ 60,781 $ 100,946 |
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision consists of the following (in thousands): 2023 2022 2021 Current: Federal $ 34,438 $ 30,012 $ 17,012 State 8,230 6,517 5,835 Australia ( 333 ) 55 118 India 3,601 4,370 959 Ireland 336 273 561 United Kingdom 1,002 349 426 Foreign other 2,391 2,772 1,338 49,665 44,348 26,249 Deferred: Federal ( 19,687 ) ( 21,962 ) 2,294 State ( 1,982 ) ( 3,073 ) 344 Australia ( 896 ) ( 890 ) ( 180 ) India ( 1,231 ) ( 1,388 ) 368 Ireland ( 205 ) ( 341 ) ( 150 ) United Kingdom ( 233 ) 469 ( 558 ) Foreign other 674 ( 442 ) 248 ( 23,560 ) ( 27,627 ) 2,366 Total income tax provision $ 26,105 $ 16,721 $ 28,615 |
Schedule of Effective Income Tax Rate Reconciliation | The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax provision is summarized as follows (in thousands): 2023 2022 2021 Provision at Federal rate of 21 % $ 19,394 $ 12,764 $ 21,199 State income taxes, net of Federal impact 4,485 2,079 4,882 Research and experimentation credits ( 1,053 ) ( 1,560 ) ( 2,062 ) Stock award vesting ( 554 ) ( 1,355 ) ( 538 ) Tax uncertainties ( 289 ) ( 227 ) 69 Section 162(m) compensation limitation 2,955 2,326 1,610 Foreign rate differential 987 571 592 Valuation allowance for deferred tax assets ( 1,655 ) 638 1,427 Withholding tax 2,728 1,948 2,305 Convertible debt premium - ( 1,017 ) - Other ( 893 ) 554 ( 869 ) Total income tax provision $ 26,105 $ 16,721 $ 28,615 |
Net Deferred Income Tax Assets | Deferred Income Taxes. Net deferred income tax assets as of December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Deferred income tax assets $ 109,536 $ 81,747 Deferred income tax liabilities ( 25,351 ) ( 27,733 ) Valuation allowance ( 26,453 ) ( 27,925 ) Net deferred income tax assets $ 57,732 $ 26,089 |
The Components of Net Deferred Income Tax Assets (Liabilities) | The components of our net deferred income tax assets (liabilities) as of December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Net deferred income tax assets (liabilities): Accrued expenses and reserves $ 10,907 $ 6,206 Stock-based compensation 5,643 5,321 Software 80 ( 855 ) Client contracts and related intangibles ( 7,536 ) ( 9,577 ) Goodwill ( 14,874 ) ( 13,424 ) Net operating loss carryforwards 25,379 27,820 Property and equipment ( 2,941 ) ( 3,789 ) Deferred revenue 6,539 4,882 Debt financing 7,396 ( 88 ) Foreign exchange gain/loss 2,010 1,791 Operating lease right-of-use assets and lease liabilities 3,555 5,872 R&D 46,817 28,733 Unrecognized tax benefit 326 408 Credits and incentives 384 374 Other 500 340 Total net deferred income tax assets 84,185 54,014 Less: valuation allowance ( 26,453 ) ( 27,925 ) Net deferred income tax assets $ 57,732 $ 26,089 |
Reconciliation of Beginning and Ending Balances of Liability for Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands): 2023 2022 2021 Balance, beginning of year $ 2,562 $ 2,929 $ 1,393 Additions related to prior acquisitions - 2 1,508 Lapse of statute of limitations ( 409 ) 5 ( 151 ) Additions for tax positions of prior years 100 8 36 Reductions for tax positions of prior years ( 395 ) ( 382 ) ( 62 ) Additions for tax positions of current year - - 205 Balance, end of year $ 1,858 $ 2,562 $ 2,929 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Unvested Restricted Stock Activity | A summary of our unvested restricted stock activity during 2023 is as follows (shares in thousands): Year Ended December 31, 2023 Shares Weighted- Unvested awards, beginning 1,147 $ 53.34 Awards granted 720 52.09 Awards forfeited/cancelled ( 112 ) 53.61 Awards vested ( 508 ) 50.52 Unvested awards, ending 1,247 $ 53.61 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2022 | Jul. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Retained earnings | $ 968,134 | $ 936,215 | |||
Aggregate amount of transaction price allocated to remaining performance obligations | $ 1,500,000 | ||||
Remaining performance obligations expected to be recognized, year | 2036 | ||||
Restricted cash included in current and non-current assets | $ 2,913 | 0 | $ 0 | ||
Restricted cash included in cash and cash equivalents | 1,000 | ||||
Proceeds from sale/maturity of short-term investments | 71 | 27,953 | 90,452 | ||
Research and development | $ 143,201 | $ 137,913 | $ 134,691 | ||
Common stock warrants issued, per warrant | $ 26.68 | ||||
Common stock Warrants | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Common stock warrants issued, per warrant | $ 26.68 | ||||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Billed accounts receivable, payment term | 30 days | ||||
Property and equipment, useful lives | 3 years | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Billed accounts receivable, payment term | 60 days | ||||
Property and equipment, useful lives | 10 years | ||||
SaaS and Related Solutions Revenue | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Long-term arrangements service period | 3 years | ||||
Future revenue including variable consideration, contractual terms ending, year | 2025 | ||||
SaaS and Related Solutions Revenue | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Long-term arrangements service period | 5 years | ||||
Future revenue including variable consideration, contractual terms ending, year | 2036 | ||||
Managed Services Solutions | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Long-term arrangements service period | 3 years | ||||
Managed Services Solutions | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Long-term arrangements service period | 5 years | ||||
ASU 2020-06 | Cumulative Effect, Period of Adoption, Adjustment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Retained earnings | $ 9,800 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, percentage | 75% |
Remaining performance obligations expected to be recognized, period | 2026 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Revenue Disaggregated by Revenue Type, Geographic Region and Customer (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total revenue | $ 1,169,258 | $ 1,089,752 | $ 1,046,487 |
Percentage of total revenue | 100% | 100% | 100% |
Broadband/Cable/Satellite | |||
Revenue: | |||
Percentage of total revenue | 52% | 54% | 57% |
Telecommunications | |||
Revenue: | |||
Percentage of total revenue | 20% | 20% | 19% |
Other | |||
Revenue: | |||
Percentage of total revenue | 28% | 26% | 24% |
Americas (principally the U.S.) | |||
Revenue: | |||
Percentage of total revenue | 86% | 85% | 85% |
Europe, Middle East and Africa | |||
Revenue: | |||
Percentage of total revenue | 10% | 11% | 11% |
Asia Pacific | |||
Revenue: | |||
Percentage of total revenue | 4% | 4% | 4% |
SaaS and Related Solutions | |||
Revenue: | |||
Total revenue | $ 1,024,572 | $ 956,995 | $ 926,290 |
Software and Services | |||
Revenue: | |||
Total revenue | 98,078 | 87,247 | 72,818 |
Maintenance | |||
Revenue: | |||
Total revenue | $ 46,608 | $ 45,510 | $ 47,379 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Rollforward of Unbilled Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Beginning Balance | $ 52,830 | $ 35,802 |
Recognized during the period | 287,844 | 285,562 |
Reclassified to receivables | (258,792) | (265,707) |
Other | 281 | (2,827) |
Ending Balance | $ 82,163 | $ 52,830 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Rollforward of Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Beginning Balance | $ (68,024) | $ (73,347) |
Revenue recognized that was included in deferred revenue at the beginning of the period | 45,699 | 53,947 |
Consideration received in advance of services performed net of revenue recognized in the current period | (55,920) | (51,432) |
Other | 599 | 2,808 |
Ending Balance | $ (77,646) | $ (68,024) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Assets fair value | $ 5,484 | $ 5,389 |
Cash equivalents | Money Market Funds | ||
Assets: | ||
Assets fair value | 5,484 | 5,318 |
Short-term Investments | Asset-backed securities | ||
Assets: | ||
Assets fair value | 71 | |
Level 1 | ||
Assets: | ||
Assets fair value | 5,484 | 5,318 |
Level 1 | Cash equivalents | Money Market Funds | ||
Assets: | ||
Assets fair value | 5,484 | 5,318 |
Level 2 | ||
Assets: | ||
Assets fair value | $ 0 | 71 |
Level 2 | Short-term Investments | Asset-backed securities | ||
Assets: | ||
Assets fair value | $ 71 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Carrying Value and Estimated Fair Value of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying value and estimated fair value of debt | ||
Carrying Value | $ 558,125 | |
2021 Credit Agreement | 2021 Term Loan | ||
Carrying value and estimated fair value of debt | ||
Carrying Value | 133,125 | $ 140,625 |
Fair Value | 133,125 | 140,625 |
2021 Credit Agreement | Revolving Credit Facility | ||
Carrying value and estimated fair value of debt | ||
Carrying Value | 275,000 | |
Fair Value | 275,000 | |
2023 Convertible Notes | ||
Carrying value and estimated fair value of debt | ||
Carrying Value | 425,000 | 0 |
Fair Value | $ 428,506 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Settlement and Merchant Reserve Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Settlement And Merchant Reserve Assets And Liabilities [Abstract] | |||
Settlement assets | $ 260,712 | $ 219,368 | |
Merchant reserve assets | 13,987 | 19,285 | |
Total | 274,699 | 238,653 | $ 186,267 |
Settlement liabilities | 259,825 | 218,525 | |
Merchant reserve liabilities | 13,992 | 19,285 | |
Total | $ 273,817 | $ 237,810 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Doubtful Accounts Receivable | |||
Balance, beginning of year | $ 5,528 | $ 4,250 | $ 3,628 |
Additions to expense | 1,765 | 1,295 | 1,102 |
Write-offs | (1,767) | (8) | (466) |
Other | (94) | (9) | (14) |
Balance, end of year | $ 5,432 | $ 5,528 | $ 4,250 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Reconciliation of the Basic and Diluted EPS Denominators (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the basic and diluted EPS denominators | |||
Basic weighted-average common shares | 29,938 | 31,028 | 31,776 |
Dilutive effect of restricted common stock | 177 | 270 | 234 |
Diluted weighted-average common shares | 30,115 | 31,298 | 32,010 |
Segment Reporting and Signifi_3
Segment Reporting and Significant Concentration (Details Textual) | 12 Months Ended |
Dec. 31, 2023 Client Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 1 |
Number of significant clients | Client | 2 |
Segment Reporting and Signifi_4
Segment Reporting and Significant Concentration - Summary of Revenue from Significant Customers (Details) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Charter | |||
Segment Reporting Information [Line Items] | |||
Revenue by major client, percentage | 21% | 20% | 21% |
Comcast | |||
Segment Reporting Information [Line Items] | |||
Revenue by major client, percentage | 18% | 20% | 21% |
Segment Reporting and Signifi_5
Segment Reporting and Significant Concentration - Summary of Net Billed Accounts Receivable from Significant Customers (Details) - Accounts Receivable - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Charter | ||
Trade accounts receivable: | ||
Accounts receivable by significant client, percentage | 23% | 22% |
Comcast | ||
Trade accounts receivable: | ||
Accounts receivable by significant client, percentage | 17% | 17% |
Goodwill and Long-Lived Asset_2
Goodwill and Long-Lived Assets - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 187,361 | $ 177,253 |
Less - accumulated depreciation | (121,816) | (105,466) |
Property and equipment, net | $ 65,545 | 71,787 |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 3 years | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 10 years | |
Computer equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 89,946 | 85,432 |
Computer equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 3 years | |
Computer equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 6 years | |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 10 years | |
Property and equipment, gross | $ 27,134 | 23,996 |
Operating equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 67,825 | 65,949 |
Operating equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 3 years | |
Operating equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 8 years | |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful lives | 8 years | |
Property and equipment, gross | $ 2,456 | $ 1,876 |
Goodwill and Long-Lived Asset_3
Goodwill and Long-Lived Assets - Rollforward of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill RollForward | ||
Beginning balance | $ 304,036 | $ 321,330 |
Adjustments related to prior acquisitions | (20) | 1,896 |
Impairment charge related to MobileCard Holdings, LLC | (1,118) | (7,211) |
Effects of changes in foreign currency exchange rates | 5,698 | (11,979) |
Ending balance | $ 308,596 | $ 304,036 |
Goodwill and Long-Lived Asset_4
Goodwill and Long-Lived Assets - Summary of Carrying Value of Acquired Customer Contracts (Details) - Acquired customer contracts - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | [1] | $ 162,348 | $ 165,497 |
Accumulated Amortization | [1] | (126,469) | (120,080) |
Net Amount | [1] | $ 35,879 | $ 45,417 |
[1] Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements. |
Goodwill and Long-Lived Asset_5
Goodwill and Long-Lived Assets - Summary of Aggregate Amortization Related to Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Acquired customer contracts | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | [1] | $ 9,775 | $ 11,605 | $ 9,240 |
Acquired software | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | [2] | 2,410 | 2,750 | 2,405 |
Internal use software | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | [3] | 13,624 | 14,140 | 13,316 |
Software | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | $ 16,034 | $ 16,890 | $ 15,721 | |
[1] Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements. Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years . The amortization of acquired software is reflected as a cost of revenue in our Income Statements. Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years . |
Goodwill and Long-Lived Asset_6
Goodwill and Long-Lived Assets - Summary of Aggregate Amortization Related to Intangible Assets (Parenthetical) (Details) | Dec. 31, 2023 |
Acquired customer contracts | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 74 months |
Acquired customer contracts | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years |
Acquired customer contracts | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 20 years |
Acquired software | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 4 years |
Acquired software | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 8 years |
Internal use software | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 1 year |
Internal use software | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Goodwill and Long-Lived Asset_7
Goodwill and Long-Lived Assets (Details Textual) $ in Millions | Dec. 31, 2023 USD ($) |
Acquired customer contracts | |
Finite Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 74 months |
Estimated total amortization expense 2024 | $ 8.6 |
Estimated total amortization expense 2025 | 7.7 |
Estimated total amortization expense 2026 | 5.9 |
Estimated total amortization expense 2027 | 3.1 |
Estimated total amortization expense 2028 | $ 2.5 |
Software | |
Finite Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 24 months |
Estimated total amortization expense 2024 | $ 8.2 |
Estimated total amortization expense 2025 | 3.8 |
Estimated total amortization expense 2026 | 2.1 |
Estimated total amortization expense 2027 | $ 0.1 |
Goodwill and Long-Lived Asset_8
Goodwill and Long-Lived Assets - Summary of Carrying Value of Software Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Acquired software | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | [1] | $ 84,031 | $ 83,543 |
Accumulated Amortization | [1] | (77,520) | (74,578) |
Net Amount | [1] | 6,511 | 8,965 |
Internal use software | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | [2] | 87,794 | 89,568 |
Accumulated Amortization | [2] | (80,081) | (75,759) |
Net Amount | [2] | 7,713 | 13,809 |
Software | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 171,825 | 173,111 | |
Accumulated Amortization | (157,601) | (150,337) | |
Net Amount | $ 14,224 | $ 22,774 | |
[1] Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years . The amortization of acquired software is reflected as a cost of revenue in our Income Statements. Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years . |
Goodwill and Long-Lived Asset_9
Goodwill and Long-Lived Assets - Summary of Carrying Values of Customer Contract Cost Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Capitalized Contract Cost [Line Items] | |||
Gross Carrying Amount | $ 96,515 | $ 85,336 | |
Accumulated Amortization | (42,094) | (30,601) | |
Net Amount | 54,421 | 54,735 | |
Customer contract incentives | |||
Capitalized Contract Cost [Line Items] | |||
Gross Carrying Amount | [1] | 7,027 | 6,626 |
Accumulated Amortization | [1] | (4,935) | (3,798) |
Net Amount | [1] | 2,092 | 2,828 |
Capitalized costs | |||
Capitalized Contract Cost [Line Items] | |||
Gross Carrying Amount | [2] | 71,976 | 63,081 |
Accumulated Amortization | [2] | (29,027) | (20,459) |
Net Amount | [2] | 42,949 | 42,622 |
Capitalized commission fees | |||
Capitalized Contract Cost [Line Items] | |||
Gross Carrying Amount | [3] | 17,512 | 15,629 |
Accumulated Amortization | [3] | (8,132) | (6,344) |
Net Amount | [3] | $ 9,380 | $ 9,285 |
[1] Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer accounts on, our solutions. Customer contract incentives are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2023 , have termination dates that range from 2024 to 2027 . The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements. Capitalized costs are related to: (i) customer conversion/set-up activities; and (ii) direct material costs to fulfill long-term revenue management solutions and managed services arrangements. These costs are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023 , range from 2024 to 2036 , and are included in cost of revenue in our Income Statements. Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023 , range from 2024 to 2029 , and are included in Selling, General, and Administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. |
Goodwill and Long-Lived Asse_10
Goodwill and Long-Lived Assets - Summary of Aggregate Amortization Related to Customer Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Capitalized Contract Cost [Line Items] | ||||
Total customer contract costs amortization | $ 20,291 | $ 19,738 | $ 21,218 | |
Customer contract incentives | ||||
Capitalized Contract Cost [Line Items] | ||||
Total customer contract costs amortization | [1] | 1,136 | 792 | 687 |
Capitalized costs | ||||
Capitalized Contract Cost [Line Items] | ||||
Total customer contract costs amortization | [2] | 15,422 | 15,918 | 17,955 |
Capitalized commission fees | ||||
Capitalized Contract Cost [Line Items] | ||||
Total customer contract costs amortization | [3] | $ 3,733 | $ 3,028 | $ 2,576 |
[1] Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer accounts on, our solutions. Customer contract incentives are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2023 , have termination dates that range from 2024 to 2027 . The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements. Capitalized costs are related to: (i) customer conversion/set-up activities; and (ii) direct material costs to fulfill long-term revenue management solutions and managed services arrangements. These costs are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023 , range from 2024 to 2036 , and are included in cost of revenue in our Income Statements. Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023 , range from 2024 to 2029 , and are included in Selling, General, and Administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. |
Goodwill and Long-Lived Asse_11
Goodwill and Long-Lived Assets - Summary of Aggregate Amortization Related to Customer Contract Costs (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | Customer contract incentives | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2024 |
Minimum | Capitalized costs | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2024 |
Minimum | Capitalized commission fees | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2024 |
Maximum | Customer contract incentives | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2027 |
Maximum | Capitalized costs | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2036 |
Maximum | Capitalized commission fees | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets, amortization year | 2029 |
Policy election to expense fees as incurred | 1 year |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | |||
Total long-term debt, gross | $ 558,125 | ||
Less – deferred financing costs | $ (3,700) | ||
Total debt, net of unamortized discounts | 542,497 | $ 412,969 | |
Current portion of long-term debt, net of unamortized discounts | (7,500) | (37,500) | |
Long-term debt, net of unamortized discounts | 534,997 | 375,469 | |
2021 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Less – deferred financing costs | (2,400) | ||
2021 Credit Agreement | Revolving Loan | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | 275,000 | ||
Revolving loan facility | 0 | 275,000 | |
2021 Credit Agreement | 2021 Term Loan | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | 133,125 | 140,625 | |
Less – deferred financing costs | (2,412) | (2,656) | |
Total debt, net of unamortized discounts | 130,713 | 137,969 | $ 150,000 |
2023 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | 425,000 | 0 | |
Less – deferred financing costs | (13,216) | 0 | |
Total debt, net of unamortized discounts | 411,784 | 0 | |
2023 Senior Unsecured Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | $ 425,000 | $ 0 |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2021 | |
2023 Senior Unsecured Convertible Notes | ||
Debt Instrument [Line Items] | ||
Maturity period | Sep. 30, 2028 | |
Interest rate on 2023 Convertible Notes | 3.875% | |
2021 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Amount available under credit facility | $ 600 | |
2021 Credit Agreement | 2021 Term Loan | ||
Debt Instrument [Line Items] | ||
Maturity period | Sep. 30, 2026 | |
Combined interest rate on 2021 Term Loan | 6.823% | |
2021 Credit Agreement | Revolving Loan | ||
Debt Instrument [Line Items] | ||
Maturity period | Sep. 30, 2026 | |
Combined interest rate on 2021 Term Loan | 6.823% | |
Amount available under credit facility | $ 450 | $ 450 |
Debt - 2023 Convertible Notes (
Debt - 2023 Convertible Notes (Details Textual) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) Tradingday $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Purchase of capped call transactions | $ (34,298) | $ 0 | $ 0 | ||
Deferred income taxes on the premiums paid for the capped call transactions | 57,732 | 26,089 | |||
Net financing cost | 14,539 | 0 | 3,000 | ||
Cash payments on revolving loan | 327,500 | $ 264,801 | $ 128,438 | ||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Cash payments on revolving loan | 275,000 | ||||
2023 Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Carrying value of debt | $ 425,000 | ||||
Interest rate on senior convertible notes | 3.875% | ||||
Maturity period | Sep. 15, 2028 | ||||
Initial conversion rate of common stock | 14.0753 | ||||
Convertible Notes, initial conversion of Par Value Convertible Notes to common stock | $ 1,000 | ||||
Initial conversion price | $ / shares | $ 71.05 | ||||
Debt instrument, premium percentage | 80% | ||||
Initial conversion rate | $ / shares | $ 0.28 | ||||
Redemption period | Sep. 21, 2026 | ||||
Trading days | Tradingday | 20 | ||||
Consecutive trading days | Tradingday | 30 | ||||
Purchase of capped call transactions | $ 34,300 | ||||
Deferred income taxes on the premiums paid for the capped call transactions | 7,900 | ||||
Net financing cost | 14,000 | ||||
Proceeds from the sale of the 2023 Notes | $ 411,000 | ||||
2023 Convertible Notes | Common Stock | |||||
Debt Instrument [Line Items] | |||||
Number of shares issuable upon conversion | shares | 5,980 | ||||
Number of common stock repurchased | shares | 1,700 | ||||
Amount of common stock repurchased | $ 90,100 | ||||
2023 Convertible Notes | Minimum | |||||
Debt Instrument [Line Items] | |||||
Carrying value of debt | $ 100,000 | ||||
Conversion price | 130% | ||||
2023 Convertible Notes | Call Option [Member] | |||||
Debt Instrument [Line Items] | |||||
Initial conversion price | $ / shares | $ 96.52 | ||||
2021 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Net financing cost | $ 500 | $ 3,000 | |||
Credit Agreement | $ 600,000 | ||||
2021 Credit Agreement | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity period | Sep. 30, 2026 | ||||
Cash payments on revolving loan | $ 275,000 | ||||
Credit Agreement | $ 450,000 | $ 450,000 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Carrying value of debt | $ 542,497,000 | $ 412,969,000 | |||
Proceeds from long term debt | 470,000,000 | 290,000,000 | $ 150,000,000 | ||
Principal repayments | 327,500,000 | 264,801,000 | 128,438,000 | ||
Net increase of available cash | $ 30,000,000 | 74,858,000 | (2,884,000) | 37,172,000 | |
Payments of deferred financing costs | 14,539,000 | 0 | 3,000,000 | ||
Financing costs | 3,700,000 | ||||
Loss on extinguishment of debt | 0 | 0 | (132,000) | ||
Revolving Loan | |||||
Debt Instrument [Line Items] | |||||
Principal repayments | 275,000,000 | ||||
2018 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement | 350,000,000 | ||||
Principal repayments | 120,000,000 | ||||
2018 Credit Agreement | Revolving Loan | |||||
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 100,000 | ||||
2021 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement | 600,000,000 | ||||
Payments of deferred financing costs | $ 500,000 | 3,000,000 | |||
Financing costs | $ 2,400,000 | ||||
2021 Credit Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.15% | ||||
2021 Credit Agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.325% | ||||
2021 Credit Agreement | Secured Overnight Financing Rate (SOFR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 1.375% | ||||
2021 Credit Agreement | Secured Overnight Financing Rate (SOFR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 2.125% | ||||
2021 Credit Agreement | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 0.375% | ||||
2021 Credit Agreement | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 1.125% | ||||
2021 Credit Agreement | Revolving Loan | |||||
Debt Instrument [Line Items] | |||||
Credit Agreement | 450,000,000 | $ 450,000,000 | |||
Term loan period | 5 years | ||||
Credit facility term | 5 years | ||||
Principal repayments | $ 275,000,000 | ||||
Basis spread on term loan | 1.375% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.15% | ||||
Combined interest rate | 6.823% | ||||
Credit Facility, current borrowing outstanding | $ 0 | ||||
Credit facility, outstanding borrowings | $ 0 | 275,000,000 | |||
2021 Credit Agreement | Revolving Loan | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
SOFR, spread adjustment | 0.10% | ||||
2021 Credit Agreement | Revolving Loan | Additional Repayments | |||||
Debt Instrument [Line Items] | |||||
Principal repayments | $ 45,000,000 | ||||
2021 Credit Agreement | Term SOFR Loans | |||||
Debt Instrument [Line Items] | |||||
Basis spread on term loan | 0.10% | ||||
2021 Credit Agreement | 2021 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Carrying value of debt | 150,000,000 | $ 130,713,000 | 137,969,000 | ||
Term loan period | 5 years | ||||
Proceeds from long term debt | $ 150,000,000 | ||||
Principal repayments | $ 7,500,000 | ||||
Basis spread on term loan | 1.375% | ||||
Combined interest rate | 6.823% | ||||
Financing costs | $ 2,412,000 | $ 2,656,000 | |||
2021 Credit Agreement | 2021 Term Loan | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
SOFR, spread adjustment | 0.10% |
Debt - 2016 Convertible Notes (
Debt - 2016 Convertible Notes (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Mar. 15, 2022 | Mar. 31, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Net carrying value | $ 7,500,000 | $ 37,500,000 | |||
Cash paid for settlement of 2016 Convertible Notes | 327,500,000 | 264,801,000 | $ 128,438,000 | ||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | (7,456,000) | $ 0 | ||
Senior Convertible Notes 2016 | |||||
Debt Instrument [Line Items] | |||||
Senior convertible notes face amount | $ 230,000,000 | ||||
Interest rate on senior convertible notes | 4.25% | ||||
Maturity date of 2016 convertible Notes | Mar. 15, 2036 | ||||
Convertible Notes, initial conversion of Par Value Convertible Notes to common stock | $ 1,000 | ||||
Initial conversion price | $ 1,053.68 | ||||
Net carrying value | $ 229,100,000 | ||||
Payments to settle convertible debt converted by holders | $ 241,400,000 | ||||
Amounts not converted and settled at par | $ 900,000 | ||||
Debt instrument redemption price percentage of principal amount | 100% | 100% | |||
Cash paid for settlement of 2016 Convertible Notes | $ 242,300,000 | ||||
Loss on derivative liability upon debt conversion | $ 7,500,000 | ||||
Amount paid above par for the settlement of the 2016 Convertible Notes, net of tax | $ 4,800,000 |
Debt - Estimated Maturities on
Debt - Estimated Maturities on Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Maturities on Long-Term Debt | ||
2024 | $ 7,500 | |
2025 | 7,500 | |
2026 | 118,125 | |
2027 | 0 | |
2028 | 425,000 | |
Total long-term debt, gross | 558,125 | |
2021 Credit Agreement | Revolving Loan | ||
Maturities on Long-Term Debt | ||
Total long-term debt, gross | $ 275,000 | |
Convertible notes | 2023 Convertible Notes | ||
Maturities on Long-Term Debt | ||
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 425,000 | |
Total long-term debt, gross | 425,000 | |
Term Loan | 2021 Credit Agreement | ||
Maturities on Long-Term Debt | ||
2024 | 7,500 | |
2025 | 7,500 | |
2026 | 118,125 | |
2027 | 0 | |
2028 | 0 | |
Total long-term debt, gross | $ 133,125 |
Debt - Deferred Financing Costs
Debt - Deferred Financing Costs (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Deferred financing costs related to convertible notes | $ 3,700 | |||
Amortization expenses of deferred financing costs included in Interest expense | $ 1,700 | $ 1,000 | $ 1,900 | |
2021 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs related to convertible notes | $ 2,400 | |||
Credit Agreement and Convertible Notes | Debt Offerings | ||||
Debt Instrument [Line Items] | ||||
Weighted-average interest rate on debt borrowings | 7% | 4% | 5% | |
2023 Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs related to convertible notes | $ 13,216 | $ 0 |
Leases (Details Textual)
Leases (Details Textual) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Lease Description [Line Items] | |
Operating leases, options to extend | some of which include options to extend the leases for up to an additional ten years. |
Operating leases, existence of option to extend | true |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 16,073 | $ 21,516 | $ 26,131 |
Variable lease expense | 3,299 | 4,103 | 4,530 |
Short-term lease expense | 1,115 | 1,105 | 582 |
Sublease income | (2,691) | (2,246) | (2,596) |
Total net lease expense | $ 17,796 | $ 24,478 | $ 28,647 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 20,559 | $ 21,125 | $ 23,272 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,787 | $ 3,817 | $ 3,909 |
Weighted-average remaining lease term - operating leases | 58 months | 54 months | 59 months |
Weighted-average discount rate - operating leases | 3.95% | 3.84% | 3.30% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Non-cancellable Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | |||
2024 | $ 16,957 | ||
2025 | 13,173 | ||
2026 | 5,860 | ||
2027 | 5,119 | ||
2028 | 4,933 | ||
Thereafter | 9,437 | ||
Total future minimum lease payments | [1] | 55,479 | |
Less: Interest | [2] | (5,173) | |
Total | 50,306 | ||
Current operating lease liabilities | 15,946 | $ 21,012 | |
Non-current operating lease liabilities | 34,360 | $ 53,207 | |
Total | $ 50,306 | ||
[1] For leases commencing prior to 2019, minimum lease payments exclude payments for real estate taxes and non-lease components. We use our functional currency adjusted incremental borrowing rate for the discount rate. |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2021 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
MobileCard Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, payment | $ 2 | |||
Percentage of acquired of equity | 64% | |||
Purchased additional LLC units | $ 4 | |||
Keydok LLC | ||||
Business Acquisition [Line Items] | ||||
Business acquisition date | Sep. 14, 2021 | |||
Percentage of acquired of equity | 100% | |||
Business acquisition, purchase price | $ 1 | |||
DGIT Systems Pty Ltd | ||||
Business Acquisition [Line Items] | ||||
Business acquisition date | Oct. 04, 2021 | |||
Business acquisition, payment | $ 14 | |||
Potential future earn out payments | $ 13 | |||
Percentage of acquired of equity | 100% | |||
Business acquisition, purchase price | $ 16 | |||
Business acquisition, remaining consideration | 2 | |||
DGIT Systems Pty Ltd | Purchase Price Payments | ||||
Business Acquisition [Line Items] | ||||
Deferred acquisition payments | $ (1.2) | $ (0.3) | ||
DGIT Systems Pty Ltd | Earn-Out Payments | ||||
Business Acquisition [Line Items] | ||||
Deferred acquisition payments | $ (0.3) |
Restructuring and Reorganizat_3
Restructuring and Reorganization Charges (Details Textual) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) Employees Properties | Dec. 31, 2022 USD ($) Employees | Dec. 31, 2021 USD ($) Employees | Dec. 31, 2020 USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and reorganization charges | $ 16,336,000 | $ 46,308,000 | $ 4,870,000 | |
Accelerated depreciation | 396,000 | 30,121,000 | $ 1,246,000 | |
Reduced workforce | Employees | 100 | |||
Impairment charges | 2,061,000 | 31,761,000 | $ 1,270,000 | |
Restructuring and reorganization reserve | $ 9,534,000 | 2,491,000 | 675,000 | $ 933,000 |
Number of real estate leases modified | Properties | 3 | |||
Gain Loss on Lease Modifications | $ 4,349,000 | 0 | 0 | |
Operating lease right-of-use asset impairments | 500,000 | |||
Cash payments | 12,413,000 | 11,763,000 | 3,306,000 | |
Current Liabilities | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and reorganization reserve | 6,900,000 | |||
Termination Benefits Related to Organizational Changes | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and reorganization charges | $ 3,500,000 | $ 7,100,000 | 3,400,000 | |
Reduced workforce | Employees | 110 | 100 | ||
Shut-down of MobileCard Business | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and reorganization charges | $ 600,000 | |||
Reduced workforce | Employees | 40 | |||
Impairment charges | $ 7,000,000 | |||
Real Estate Restructurings | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and reorganization charges | 23,100,000 | |||
Accelerated depreciation | $ 4,400,000 | $ 1,200,000 | ||
Shut Down Of Keydok Business | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and reorganization charges | $ 1,600,000 | |||
Reduced workforce | Employees | 30 | |||
Impairment charges | $ 1,200,000 | |||
Contract Termination | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges Incurred | 9,900,000 | |||
Cash payments | 1,800,000 | |||
Restructuring Reserve Accrued | $ 8,100 |
Restructuring and Reorganizat_4
Restructuring and Reorganization Charges - Schedule of Activity in Business Restructuring and Reorganization Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||
Beginning Balance | $ 2,491 | $ 675 | $ 933 |
Charged to expense during period | 16,336 | 46,308 | 4,870 |
Cash payments | (12,413) | (11,763) | (3,306) |
Adjustment for asset impairment | (1,675) | (4,369) | (415) |
Adjustment for gain on lease modifications | 4,349 | 0 | 0 |
Adjustment for accelerated depreciation | (396) | (30,121) | (1,246) |
Other | 842 | 1,761 | (161) |
Ending Balance | 9,534 | 2,491 | 675 |
Termination Benefits | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning Balance | 2,491 | 675 | 933 |
Charged to expense during period | 5,128 | 7,720 | 3,419 |
Cash payments | (7,027) | (7,665) | (3,516) |
Other | 842 | 1,761 | (161) |
Ending Balance | 1,434 | 2,491 | 675 |
Other | |||
Restructuring Cost And Reserve [Line Items] | |||
Charged to expense during period | 11,208 | 38,588 | 1,451 |
Cash payments | (5,386) | (4,098) | (210) |
Adjustment for asset impairment | (1,675) | (4,369) | (415) |
Adjustment for gain on lease modifications | 4,349 | ||
Adjustment for accelerated depreciation | (396) | $ (30,121) | $ (1,246) |
Ending Balance | $ 8,100 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Domestic | $ 72,769 | $ 53,251 | $ 98,261 |
Income before income taxes | 92,351 | 60,781 | 100,946 |
Foreign Country | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign other | 6,927 | 4,722 | 4,348 |
Foreign Country | Australia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 854 | (5,851) | (3,429) |
Foreign Country | India | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | 10,008 | 9,517 | 5,873 |
Foreign Country | Ireland | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | (236) | (3,391) | 1,627 |
Foreign Country | United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign | $ 2,029 | $ 2,533 | $ (5,734) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 34,438 | $ 30,012 | $ 17,012 |
State | 8,230 | 6,517 | 5,835 |
Total | 49,665 | 44,348 | 26,249 |
Deferred: | |||
Federal | (19,687) | (21,962) | 2,294 |
State | (1,982) | (3,073) | 344 |
Total | (23,560) | (27,627) | 2,366 |
Total income tax provision | 26,105 | 16,721 | 28,615 |
Foreign Country | |||
Current: | |||
Foreign other | 2,391 | 2,772 | 1,338 |
Deferred: | |||
Foreign other | 674 | (442) | 248 |
Foreign Country | Australia | |||
Current: | |||
Foreign | (333) | 55 | 118 |
Deferred: | |||
Foreign | (896) | (890) | (180) |
Foreign Country | India | |||
Current: | |||
Foreign | 3,601 | 4,370 | 959 |
Deferred: | |||
Foreign | (1,231) | (1,388) | 368 |
Foreign Country | Ireland | |||
Current: | |||
Foreign | 336 | 273 | 561 |
Deferred: | |||
Foreign | (205) | (341) | (150) |
Foreign Country | United Kingdom | |||
Current: | |||
Foreign | 1,002 | 349 | 426 |
Deferred: | |||
Foreign | $ (233) | $ 469 | $ (558) |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision/(Benefit) (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | ||
Deferred income tax assets attributable to capitalized R&D | $ 46,817 | $ 28,733 |
Amortization period of the Capped Call Transactions | 2023 through 2028 | |
Federal and State Deferred Tax Assets | ||
Income Taxes [Line Items] | ||
Deferred income tax assets attributable to capitalized R&D | $ 46,300 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Difference between income tax provision computed at the statutory Federal income tax rate and financial statement income tax | |||
Provision at Federal rate of 21% | $ 19,394 | $ 12,764 | $ 21,199 |
State income taxes, net of Federal impact | 4,485 | 2,079 | 4,882 |
Research and experimentation credits | (1,053) | (1,560) | (2,062) |
Stock award vesting | (554) | (1,355) | (538) |
Tax uncertainties | (289) | (227) | 69 |
Section 162(m) compensation limitation | 2,955 | 2,326 | 1,610 |
Foreign rate differential | 987 | 571 | 592 |
Valuation allowance for deferred tax assets | (1,655) | 638 | 1,427 |
Withholding tax | 2,728 | 1,948 | 2,305 |
Convertible debt premium | 0 | (1,017) | 0 |
Other | (893) | 554 | (869) |
Total income tax provision | $ 26,105 | $ 16,721 | $ 28,615 |
Income Taxes - Schedule of Ef_2
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Difference between income tax provision computed at the statutory Federal income tax rate and financial statement income tax | |||
Provision at Federal rate | 21% | 21% | 21% |
Income Taxes - Income Tax Pro_2
Income Taxes - Income Tax Provision/(Benefit) and Deferred Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 71,000,000 | |
Deferred income tax assets benefits percentage | 100% | |
Valuation allowance | $ 26,453,000 | $ 27,925,000 |
Domestic Country | ||
Income Taxes [Line Items] | ||
Valuation allowance | 0 | |
Operating loss carryforward | $ 8,000,000 | 13,000,000 |
Operating Loss Carryforwards, Expiration Dates | begin to expire in 2029 and can be utilized through 2033 | |
State And Local Jurisdiction | ||
Income Taxes [Line Items] | ||
Valuation allowance | $ 1,300,000 | |
Deferred income tax assets net of federal benefit | 1,200,000 | |
Operating loss carryforward | $ 29,000,000 | 42,000,000 |
Operating Loss Carryforwards, Expiration Dates | will expire beginning in 2024 with a portion of the losses available over an indefinite period of time | |
Foreign Country | ||
Income Taxes [Line Items] | ||
Valuation allowance | $ 25,100,000 | |
Deferred income tax assets net of federal benefit | 35,900,000 | |
Operating loss carryforward | $ 102,000,000 | $ 104,000,000 |
Operating Loss Carryforwards, Expiration Dates | 2031 |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Net deferred income tax liabilities | ||
Deferred income tax assets | $ 109,536 | $ 81,747 |
Deferred income tax liabilities | (25,351) | (27,733) |
Valuation allowance | (26,453) | (27,925) |
Net deferred income tax assets | $ 57,732 | $ 26,089 |
Income Taxes - The Components o
Income Taxes - The Components of Net Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Net deferred income tax assets (liabilities): | ||
Accrued expenses and reserves | $ 10,907 | $ 6,206 |
Stock-based compensation | 5,643 | 5,321 |
Software | 80 | (855) |
Goodwill | (14,874) | (13,424) |
Net operating loss carryforwards | 25,379 | 27,820 |
Property and equipment | (2,941) | (3,789) |
Deferred revenue | 6,539 | 4,882 |
Debt Financing | 7,396 | (88) |
Foreign exchange gain/loss | 2,010 | 1,791 |
Operating lease right-of-use assets and lease liabilities | 3,555 | 5,872 |
R&D | 46,817 | 28,733 |
Unrecognized tax benefit | 326 | 408 |
Credits and incentives | 384 | 374 |
Other | 500 | 340 |
Total net deferred income tax assets | 84,185 | 54,014 |
Less: valuation allowance | (26,453) | (27,925) |
Net deferred income tax assets | 57,732 | 26,089 |
Client Contracts | ||
Net deferred income tax assets (liabilities): | ||
Client contracts and related intangibles | $ (7,536) | $ (9,577) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Beginning and Ending Balances of our Liability for Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unrecognized tax benefits | |||
Balance, beginning of year | $ 2,562 | $ 2,929 | $ 1,393 |
Additions related to prior acquisitions | 0 | 2 | 1,508 |
Lapse of statute of limitations | (409) | 5 | (151) |
Additions for tax positions of prior years | 100 | 8 | 36 |
Reductions for tax positions of prior years | (395) | (382) | (62) |
Additions for tax positions of current year | 0 | 0 | 205 |
Balance, end of year | $ 1,858 | $ 2,562 | $ 2,929 |
Income Taxes - Accounting for U
Income Taxes - Accounting for Uncertainty in Income Taxes (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes (Textual) [Abstract] | ||||
Liability for unrecognized tax benefits | $ 1,858 | $ 2,562 | $ 2,929 | $ 1,393 |
Income tax related to accrued interest, net of federal benefit | 900 | $ 600 | $ 700 | |
Unrecognized tax benefits that would favorably impact the tax rate | 1,900 | |||
Maximum | ||||
Income Taxes (Textual) [Abstract] | ||||
Unrecognized tax benefits decrease amount over next twelve months | $ 700 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum employee eligible contributions, percent | 100% | ||
US Based Employees | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total contributions under plans | $ 12.8 | $ 13.2 | $ 12.4 |
Non US Based Employees | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total contributions under plans | $ 7.7 | $ 6.6 | $ 6.1 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | |||
Service agreement expiry date | Sep. 30, 2028 | ||
Restricted cash included in current and non-current assets | $ 2,913 | $ 0 | $ 0 |
Money transmitter bonds outstanding | $ 20,000 | ||
Warranty Period | 90 days | ||
Surety And Money Transmitter Bonds | |||
Other Commitments [Line Items] | |||
Restricted assets used to collateralize guarantees | $ 4,900 | ||
Other Current Assets | |||
Other Commitments [Line Items] | |||
Restricted cash included in current and non-current assets | 700 | ||
Other Non-current Assets | |||
Other Commitments [Line Items] | |||
Restricted cash included in current and non-current assets | $ 2,200 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 4 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Aug. 31, 2023 | Jul. 31, 2014 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders Equity Transaction [Line Items] | |||||||
Remaining authorized repurchase amount | $ 100 | $ 100 | |||||
Accrued excise tax | $ 1 | $ 1 | |||||
Repurchase of common stock for employee tax withholdings, shares | 182,000 | 138,000 | 130,000 | ||||
Repurchase of common stock for tax withholdings, value | $ 10.2 | $ 8.7 | $ 6.3 | ||||
Cash dividends declared per common share | $ 1.12 | $ 1.06 | $ 1 | ||||
Cash dividend | $ 34.3 | $ 33.7 | $ 32.7 | ||||
Stock warrants term | 10 years | ||||||
Stock warrants, exercise price | $ 26.68 | ||||||
Conversion Of Comcast Current Residential Customer Accounts | |||||||
Stockholders Equity Transaction [Line Items] | |||||||
Issuance of stock warrants | 1,900,000 | ||||||
Comcast | |||||||
Stockholders Equity Transaction [Line Items] | |||||||
Issuance of stock warrants | 2,900,000 | ||||||
Stock warrants issued | 1,000,000 | 1,000,000 | |||||
Stock warrants vested | 0 | ||||||
Beneficial ownership required for potential cash settlement | 19.99% | 19.99% | |||||
SEC Rule 10b5-1 Plan | |||||||
Stockholders Equity Transaction [Line Items] | |||||||
Repurchase of common stock, shares | 275,000 | 2,188,000 | 1,497,000 | 733,000 | |||
Total amount paid | $ 15 | $ 117.1 | $ 87.9 | $ 36 | |||
Weighted-average price per share | $ 54.65 | $ 53.51 | $ 58.71 | $ 49.13 | |||
2023 Convertible Notes | |||||||
Stockholders Equity Transaction [Line Items] | |||||||
Repurchase of common stock, shares | 1,680,000 | ||||||
Total amount paid | $ 90.1 | ||||||
Weighted-average price per share | $ 53.62 | ||||||
Second SEC Rule 10b5-1 Plan | |||||||
Stockholders Equity Transaction [Line Items] | |||||||
Remaining authorized repurchase amount | $ 100 | ||||||
Repurchase of common stock, shares | 233,000 | ||||||
Total amount paid | $ 12 | ||||||
Weighted-average price per share | $ 51.33 | ||||||
Stock Repurchase Program | |||||||
Stockholders Equity Transaction [Line Items] | |||||||
Remaining authorized repurchase amount | $ 95.8 | $ 95.8 |
Equity Compensation Plans - Sto
Equity Compensation Plans - Stock Incentive Plan (Details Textual) shares in Millions | 12 Months Ended |
Dec. 31, 2023 shares | |
2005 Stock Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares authorized and reserved for issuance under incentive plan | 27.9 |
Increase in number of shares authorized and reserved for issuance under incentive plan | 2.9 |
Stock Incentive Plan 2005 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares counted for every share granted | 2 |
Stockholder approved shares available for issuance | 5.7 |
Stockholder approved shares available for grant | 5.2 |
Equity Compensation Plans - Res
Equity Compensation Plans - Restricted Stock (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value, awards granted | $ 52.09 | $ 63.25 | $ 48.82 |
Market value of restricted stock shares vesting | $ 28 | $ 26.4 | $ 21 |
Restricted stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted common stock shares granted to certain members of executive management | 720 | ||
Weighted-average grant date fair value, awards granted | $ 52.09 | ||
Minimum | Restricted stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Maximum | Restricted stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years |
Equity Compensation Plans - Sum
Equity Compensation Plans - Summary of Unvested Restricted Stock Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted-Average Grant Date Fair Value | |||
Weighted-average grant date fair value, awards granted | $ 52.09 | $ 63.25 | $ 48.82 |
Restricted stock | |||
Shares | |||
Shares, Unvested awards, beginning balance | 1,147 | ||
Shares, Awards granted | 720 | ||
Shares, Awards forfeited/cancelled | (112) | ||
Shares, Awards vested | (508) | ||
Shares, Unvested awards, ending balance | 1,247 | 1,147 | |
Weighted-Average Grant Date Fair Value | |||
Weighted-average grant date fair value, unvested awards, beginning balance | $ 53.34 | ||
Weighted-average grant date fair value, awards granted | 52.09 | ||
Weighted-average grant date fair value, awards forfeited/cancelled | 53.61 | ||
Weighted-average grant date fair value, awards vested | 50.52 | ||
Weighted-average grant date fair value, unvested awards, ending balance | $ 53.61 | $ 53.34 |
Equity Compensation Plans - 199
Equity Compensation Plans - 1996 Employee Stock Purchase Plan (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Value of stock purchases made pursuant to employee stock purchase plan | $ 3,284 | $ 2,969 | $ 2,610 |
1996 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for issue to employees under the employee stock purchase plan | 2,900,000 | ||
Purchase Price of shares as a percentage of market value | 85% | ||
Number of shares purchased under employee stock purchase plan | 73,982 | 58,362 | 64,342 |
Value of stock purchases made pursuant to employee stock purchase plan | $ 3,300 | $ 3,000 | $ 2,600 |
Remaining number of shares eligible for purchase under employee stock purchase plan | 1,100,000 | ||
1996 Employee Stock Purchase Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Purchase price of shares under the plan | $ 39.83 | $ 44.95 | $ 36.63 |
1996 Employee Stock Purchase Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Purchase price of shares under the plan | $ 50.72 | $ 55.46 | $ 48.98 |
Equity Compensation Plans - S_2
Equity Compensation Plans - Stock-Based Compensation Expense (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 28,990 | $ 27,243 | $ 21,400 |
Total compensation cost related to unvested awards not yet recognized | $ 35,800 | ||
Stock based compensation expense period | 1 year 8 months 12 days | ||
Deferred income tax benefit related to stock-based compensation expense | $ 6,000 | 5,700 | 4,900 |
Income tax benefit realized for the tax deductions from stock-based compensation | $ 4,800 | $ 4,500 | $ 4,400 |