0000950170-22-002823 | 10-K | XBRL Viewer

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net income	$ 9,300	$ 13,711	$ 13,697
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	13,295	8,069	6,001
Deferred income taxes	(660)	1,638	1,279
Stock-based compensation	3,136	1,994	1,585
Non-cash lease expense	2,497	2,802
Amortization of contract asset	669
Provision for credit losses	106	100
Change in operating assets and liabilities, net of impact of business combination
Accounts and other receivables	(14,736)	(8,689)	(5,070)
Prepaid expenses and other current and long-term assets	1,346	840	208
Accounts payable	7,380	14,636	(596)
Accrued liabilities	(44)	2,759	2,131
Operating lease liabilities	(2,443)	(2,641)
Contract liabilities	474	184	(323)
Income taxes receivable, net of payable	(827)	217	(1,401)
Net cash provided by operating activities	19,493	35,620	17,511
Cash flows from investing activities
Business combinations, net of cash and restricted cash acquired	(57,400)	(290)	(1,370)
Other intangible assets acquired	(130)		(1,265)
Purchases of property and equipment	(979)	(458)	(1,040)
Capitalized internal-use software development costs	(19,300)	(14,389)	(10,222)
Net cash used in investing activities	(77,809)	(15,137)	(13,897)
Cash flows from financing activities
Proceeds from initial public offering, net of underwriter's discounts and commissions	224,595
Proceeds from private placement	50,000
Proceeds from repayment of related party loan	813
Proceeds from exercise of stock options	315
Financial Institution fund in transit	1,984
Payments of deferred offering costs	1,961
Payments on other financing obligations	(4,562)	(1,035)	(675)
Payments on finance leases	(272)	(323)	(196)
Proceeds from issuance of common shares			59
Payment on debt assumed in acquisitions			(86)
Net cash provided by (used in) financing activities	213,487	(1,358)	(857)
Foreign currency effect on cash and cash equivalents	(8)	114	36
Net increase in cash and cash equivalents	155,163	19,239	2,793
Cash and cash equivalents
Beginning of period	46,666	27,427	24,634
End of period	201,829	46,666	27,427
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	2,487	2,891	4,735
Non-cash investing activities:
Property and equipment purchases in accounts payable	268	7	16
Business acquisition liability in accrued liabilities and finance leases and other finance obligations, net of current portion	813	0	290
Noncash Investing and Financing Items [Abstract]
Prepaid insurance funded through short-term borrowings	5,756	1,389	860
Issuance of Warrant	4,802	0	0
Property and equipment acquired through finance lease liabilities	0	814	0
Intangibles acquired through other financing obligations	0	55	0
Cash and Cash Equivalents [Member]
Cash and cash equivalents
Beginning of period	46,666	27,427
End of period	168,386	46,666	27,427
Restricted funds [Member]
Cash and cash equivalents
Beginning of period
End of period	33,443
Series A Preferred Stock [Member]
Cash flows from financing activities
Redemption of Series A preferred stock	(23,013)
Payment of dividends on Series A preferred stock	(34,412)
Proceeds from issuance of Series A preferred shares			$ 41
Class A Common Stock [Member]
Non-cash investing activities:
Fair value of Class A common stock issued for acquisitions	68,229	0	0

Income Taxes - The provision for income taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current
Domestic	$ 915,000	$ 2,485,000	$ 3,261,000
Foreign	811,000	534,000	241,000
Total	1,726,000	3,019,000	3,502,000
Deferred
Domestic	(765,000)	1,583,000	1,071,000
Foreign	105,000	51,000	209,000
Total	(660,000)	1,634,000	1,280,000
Provision for income taxes	$ 1,066,000	$ 4,653,000	$ 4,782,000

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	IPO [Member]	Series A Preferred Stock [Member]	Series A Preferred Stock [Member] IPO [Member]	Common Class A [Member]	Common Class A [Member] IPO [Member]	Common Shares [Member]	Common Shares [Member] IPO [Member]	Common Shares [Member] Common Class A [Member]	Common Shares [Member] Common Class A [Member] IPO [Member]	Additional Paid-In-Capital	Additional Paid-In-Capital IPO [Member]	Additional Paid-In-Capital Common Class A [Member]	Additional Paid-In-Capital Common Class A [Member] IPO [Member]	Treasury Stock	Treasury Stock IPO [Member]	Retained Earnings	Retained Earnings IPO [Member]	Accumulated Other Comprehensive Income
Beginning balance at Dec. 31, 2018	$ 53,206						$ 517				$ 25,496				$ (579)		$ 27,639		$ 133
Beginning balance (in shares) at Dec. 31, 2018			22,972				103,380,579
Issuance of shares	100										100
Issuance of shares (in shares)			41				98,660
Stock-based compensation	1,585										1,585
Other comprehensive income (Loss)	16																		16
Net income	13,697																13,697
Ending balance at Dec. 31, 2019	68,604						$ 517				27,181				(579)		41,336		149
Ending balance (in shares) at Dec. 31, 2019			23,013				103,479,239
Stock-based compensation	1,994										1,994
Other comprehensive income (Loss)	67																		67
Net income	13,711																13,711
Ending balance at Dec. 31, 2020	84,376						$ 517				29,175				$ (579)		55,047		216
Ending balance (in shares) at Dec. 31, 2020			23,013				103,479,239
Issuance of shares		$ 272,634			$ 68,229	$ 315		$ 1				$ 272,633	$ 68,229	$ 315
Issuance of shares (in shares)		7,500						13,880,950	2,655,252	616,220
Conversion of common stock to Class B common stock								$ (506)				506
Redemption of Series A preferred stock in connection with initial public offering , Value		$ (57,425)										(23,013)						$ (34,412)
Redemption of Series A preferred stock in connection with initial public offering , Share				(23,013)
Issuance of warrant		$ 4,802										4,802						$ 0
Retirement of treasury stock in connection with initial public offering												$ (579)				$ 579
Stock-based compensation	3,136										3,136
Repayment of related party loan receivable	813										813
Other comprehensive income (Loss)	(48)																		(48)
Net income	9,300																9,300
Ending balance at Dec. 31, 2021	$ 386,132						$ 12				$ 356,017						$ 29,935		$ 168
Ending balance (in shares) at Dec. 31, 2021							120,639,161

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2021

Payveris L L C [Member]

Restructuring Cost and Reserve [Line Items]

Schedule of Assets Acquired and Liabilities Assumed

The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands):


Accounts receivable	$	1,026
Prepaid expenses and other current assets		237
Intangible assets, includes software acquired		38,498
Property and equipment		77
Goodwill		108,950
Restricted funds held for financial institutions		31,459
Financial institution funds in-transit		(31,459	)
Accounts payable		(194	)
Accrued liabilities		(265	)
Deferred revenue		(2,805	)
Total	$	145,524

Schedule of Fair Value of Identified Intangible Assets and Useful Lives

The fair values and estimated useful lives of the acquired intangible assets by category were as follows (in thousands, except years):


	Fair Value		Useful Life (Years)
Customer Relationships	$	26,154		8.0
Trademarks		3,993		4.0
Developed Technology		8,102		4.0
Total	$	38,249

Finovera Inc [Member]

Restructuring Cost and Reserve [Line Items]

Schedule of Assets Acquired and Liabilities Assumed

The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands):


Cash	$	65
Accounts receivable		267
Intangible assets		6,048
Prepaid expenses and other		39
Goodwill		7,266
Accounts payable		(85	)
Accrued liabilities		(72	)
Deferred taxes		(588	)
Total	$	12,940

Schedule of Fair Value of Identified Intangible Assets and Useful Lives

The fair values and estimated useful lives of the acquired intangible assets by category were as follows (in thousands, except years):


	Fair Value		Useful Life (Years)
Developed Technology	$	5,155		4.0
Customer Relationships		893		2.0
Total	$	6,048

Leases - Additional Information (Details) $ in Millions	12 Months Ended
Leases - Additional Information (Details) $ in Millions	Dec. 31, 2021 USD ($)
Lessee Lease Description [Line Items]
Operating lease commencement year	2021
Operating lease term	5 years
Additional operating lease, right-of-use asset	$ 2.5
Future operating lease payments	$ 4.5
Minimum [Member]
Lessee Lease Description [Line Items]
Operating lease, remaining lease term	1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Operating lease, remaining lease term	10 years

Income Taxes - Significant components of the Company's deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets
Stock-based compensation and other accruals	$ 1,895	$ 1,714
State net operating losses	3,919	70
Foreign tax credit	741
Operating lease liabilities	3,732	3,521
Fixed assets	87	197
Other	76	48
Total deferred tax assets	10,450	5,550
Valuation allowance	(744)	(22)
Net deferred tax assets	9,706	5,528
Deferred tax liabilities
Intangible assets	(9,031)	(5,046)
Research and development tax credit carry forward	0	(36)
Fixed assets	(98)	(39)
Operating lease right-of-use assets	(3,602)	(3,423)
Foregone foreign tax credit	(130)	213
Total deferred tax liabilities	12,861	8,757
Net deferred tax liabilities	3,155	3,229
Deferred tax liability (non-current)	3,318	3,499
Deferred tax asset (non-current)	$ 163	$ 270

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Components of Lease Cost

The components of lease cost were as follows (in thousands):


	Year Ended December 31,
	2021		2020
Operating lease cost	$	2,847	$	3,026
Finance lease cost
Depreciation expense		272		302
Interest on finance lease liabilities		16		23
Total finance lease cost		288		325
Short-term lease cost		1,063		345
Total lease cost	$	4,198	$	3,696

Summary of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows (in thousands):


	Year Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	2,755	$	2,652
Operating cash flows for finance leases		16		23
Financing cash flows for finance leases		272		323
Right-of-use assets obtained in exchange of operating lease obligations		2,550		7,678
Property and equipment obtained in exchange of finance lease obligations		—		814

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:


	December 31,
	2021			2020
Weighted-average remaining lease term (years)
Operating leases		8.3			6.7
Finance leases		1.2			2.2
Weighted-average discount rate
Operating leases		2.82	%		2.98	%
Finance leases		3.24	%		3.24	%

Summary of Remaining Lease Payments under Non-Cancelable Operating and Finance Leases

The total remaining lease payments under non-cancelable operating and finance leases as of December 31, 2021 were as follows (in thousands):


Years Ending December 31,	Operating Leases			Finance Leases
2022	$	1,723		$	271
2023		843			106
2024		836			—
2025		847			—
2026		858			—
Thereafter		3,692			—
Total minimum lease payments including interest	$	8,799		$	377
Less imputed interest		(880	)		(11	)
Total lease liabilities	$	7,919		$	366

Revenue - Summary of Disaggregation of Revenue from Contracts with Customer (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation Of Revenue [Line Items]
Revenue	$ 395,524	$ 301,767	$ 235,778
Payment Transaction Processing Revenue [Member]
Disaggregation Of Revenue [Line Items]
Revenue	390,703	297,494	232,379
Other [Member]
Disaggregation Of Revenue [Line Items]
Revenue	$ 4,821	$ 4,273	$ 3,399

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details

Income Taxes - Components of income before income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
United States	$ 7,265	$ 16,548	$ 16,661
Foreign	3,101	1,816	1,818
Income before income taxes	$ 10,366	$ 18,364	$ 18,479

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

The changes in the allowance for credit losses

The changes in the allowance for credit losses were as follows (in thousands):



	Allowance for Credit Losses
Balance as of December 31, 2019	$	—
Charge-offs		—
Recoveries		—
Provision for credit losses		100
Balance as of December 31, 2020	$	100
Charge-offs		(104	)
Recoveries		—
Provision for credit losses		106
Balance as of December 31, 2021	$	102

Basis of Presentation and Summary of Significant Accounting Policies - The changes in the allowance for credit losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Disclosure of Securitized or Asset-backed Financing Arrangement Assets and Other Financial Assets Managed Together [Abstract]
Financing Receivable, Allowance for Credit Loss, Beginning Balance	$ 100	$ 0
Charge-offs	(104)	0
Recoveries	0	0
Provision for credit losses	106	100
Financing Receivable, Allowance for Credit Loss, Ending Balance	$ 102	$ 100

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Geographic Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Summary of Revenue by Geographic Area

Revenue by geographic area, based on the location of the Company’s users, was as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
United States	$	387,242	$	295,761	$	230,975
Other		8,282		6,006		4,803
Total	$	395,524	$	301,767	$	235,778

Long-lived Assets by Geographic Areas

Long-lived assets, comprising property and equipment assets, by geographic area were as follows (in thousands):


	December 31,
	2021		2020
United States	$	588	$	717
Other		1,456		1,055
Total	$	2,044	$	1,772

Revenue

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue, Performance Obligations and Contract Balances

3. Revenue, Performance Obligations and Contract Balances

Pursuant to ASC 606, the Company evaluates the services promised in contracts with customers at contract inception, and identifies a performance obligation for each promise to transfer a service that is distinct. For the payment transaction services, the promise to the customer is that the Company stands ready to process payment transactions the customer requests on a daily basis over the contract term. Since the timing and quantity of transactions to be processed by Paymentus is not determinable, the Company views payment services to comprise an obligation to stand ready to process as many transactions as the customer requests. Under a stand-ready obligation, the evaluation of the nature of a

performance obligation is focused on each time increment rather than the underlying activities. Therefore, the Company views payment services to comprise a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. Accordingly, the promise to stand ready is accounted for as a single-series performance obligation.

ASC 606 requires that the Company determines for each customer arrangement whether revenue should be recognized at a point in time or over time. Substantially all of the Company’s revenues are recognized over time. The majority of the payment transaction services are priced as a percentage of transaction value or a specified fee per transaction. Given the nature of the promise based on unknown quantities or outcomes of services to be performed over the contract term, the total consideration is determined to be variable consideration. The variable consideration for the Company’s payment service is usage-based and, therefore, it specifically relates to the Company’s efforts to satisfy its payment services obligation. The variability is satisfied each day the service is provided to the customer. The Company directly assigns variable fees to the distinct day of service to which it relates, by considering the services performed each day. Therefore, Paymentus measures revenue for its payment service on a daily basis based on the services that are performed on that day and recognizes revenue once the transaction is complete.

The initial term of customer contracts is typically between three to five years. Termination provisions vary by customer, however the majority of customers may not terminate their contract early without penalty. Some of the contracts include tiered pricing, based primarily on volume. The fee charged per transaction is adjusted up or down if the volume processed for a specified period is different from prior period defined volumes. The Company has concluded that this volume-based pricing approach does not constitute a future material right since the discount is within a range typically offered to a class of customers with similar volume. In addition, some contracts include prescribed annual or monthly minimums, penalties for early termination, and service level agreements that may affect contractual fees if specific service levels are not achieved. The Company has determined that these processing services represent a stand-ready obligation comprising a series of distinct days of services that are substantially the same and have the same pattern of transfer to the customer.

The Company also has partner agreements, some of which contain guaranteed revenue or transaction minimum commitments and revenue sharing arrangements. Because of these minimum commitments, the Company has to evaluate the agreements to determine the fixed and variable consideration and the amount of revenue to be recognized. For the minimum commitments, the Company records the fixed consideration ratably over the commitment period and the variable consideration to the extent that the Company believes that the variable consideration is not constrained. The revenue recorded for these arrangements is net of any revenue sharing with the customer, which is typically determined based on a calculation of revenue less certain fees incurred by the Company, as defined in the agreement.

The Company recognizes fees charged to customers primarily on a gross basis as transaction revenue when the Company is the principal in respect of completing a payment transaction. In order to provide payment services, the Company routes and clears each transaction through the applicable payment network. The Company obtains authorization for the transaction and requests funds settlement from the card issuing financial institution through the payment network. When third parties are involved in the transfer of goods or services to customers, the Company considers the nature of each specific promised good or service and applies judgment to determine whether the Company controls the good or service before it is transferred to the customer or whether the Company is acting as an agent of the third party. To determine whether or not the Company controls the good or service before it is transferred to the customer, the Company assesses indicators including whether the Company or the third party is primarily responsible for fulfillment and which party has discretion in determining pricing for the good or service, as well as other considerations. Based on an assessment of these indicators, the Company has concluded that the Company bears primary responsibility for the fulfillment of the payment service with the majority of the customers, contracts directly with customers, controls the product specifications, and defines the value proposal from the Company’s services. The Company therefore bears full margin risk when completing a payment transaction, and on that basis, controls those services prior to being transferred to the customer. The interchange fees charged by the card issuing financial institutions and the fees charged by the payment networks are recognized as transaction expense within cost of revenue in the consolidated statements of operations.

ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. As permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure.

Disaggregation of Revenue

The following table presents a disaggregation of revenue from contracts with customers (in thousands):


	Year Ended December 31,
	2021		2020		2019
Payment transaction processing revenue	$	390,703	$	297,494	$	232,379
Other		4,821		4,273		3,399
Total revenue	$	395,524	$	301,767	$	235,778

Remaining Performance Obligations

ASU Topic 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied
performance obligations. The purpose of this disclosure is to provide additional information about the amounts
and expected timing of revenue to be recognized from the remaining performance obligations in our existing
contracts.

As of December 31, 2021, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied was $3.9 million, which the Company expects to recognize over 90% within the next two years. The timing of revenue recognition within the next year is largely dependent upon the go-live dates of the Company's contracts.

As of December 31, 2021, the Company has contractual rights under its commercial agreements to receive $33.4 million of fixed consideration related to the future minimum revenue or transaction guarantees through March 2026. As
permitted, the Company has elected to exclude from this disclosure any variable consideration that meets specified criteria. Accordingly, the total unsatisfied or partially
unsatisfied performance obligations related to processing services is significantly higher than the amount
disclosed.

Contract Balances

The contract asset balance at December 31, 2021 was $5.6 million of which $1.7 million was included in prepaid expenses and other current assets and $3.9 million was included in other long-term assets in the consolidated balance sheets. There were no contract assets recorded as of December 31, 2020. During the year ended December 31, 2021, the Company reduced revenue and the related contract assets by $0.9 million.

The Company recorded $3.9 million and $0.6 million of contract liabilities in the consolidated balance sheets as of December 31, 2021 and December 31, 2020, respectively, of which $2.8 million is related to acquisitions during the year ended December 31, 2021 and the remaining related to legacy contracts obtained from prior acquisitions associated with the Company’s insignificant other revenue stream and other payments the Company received in advance for services. The change in the contract liabilities is primarily the result of the Payveris acquisition and timing differences between payment from the customer and the Company’s satisfaction of each performance obligation. The revenue recognized that was included in the contract liabilities balance at the beginning of each of the years ended December 31, 2021 and 2020 was $0.6 million and $0.5 million, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Goodwill and Intangible Assets - Summary of Intagible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 62,405	$ 18,075
Accumulated Amortization	(20,317)	(17,779)
Net Carrying Amount	42,088	296
Technology [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	20,837	7,579
Accumulated Amortization	(8,655)	(7,460)
Net Carrying Amount	$ 12,182	$ 119
Weighted-Average Useful Life (Years)	4 years	7 years
License [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,652	$ 2,652
Accumulated Amortization	(2,652)	(2,652)
Net Carrying Amount	0	0
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,830	6,782
Accumulated Amortization	(8,021)	(6,782)
Net Carrying Amount	$ 25,809	0
Weighted-Average Useful Life (Years)	8 years
Software [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 893	532
Accumulated Amortization	(456)	(355)
Net Carrying Amount	$ 437	$ 177
Weighted-Average Useful Life (Years)	3 years	3 years
Non-Compete [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount		$ 330
Accumulated Amortization		(330)
Net Carrying Amount		0
Trademark [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,193	200
Accumulated Amortization	(533)	(200)
Net Carrying Amount	$ 3,660	$ 0
Weighted-Average Useful Life (Years)	4 years

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 9,300	$ 13,711	$ 13,697
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments, net of tax	(48)	67	16
Comprehensive income	$ 9,252	$ 13,778	$ 13,713

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Net Income Per Share Attributable to Common Stock (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock

The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands except share and per share data):


	Year Ended December 31,
	2021			2020			2019
Numerator:
Net income	$	9,300		$	13,711		$	13,697
Undeclared dividends on Series A preferred stock		(2,258	)		(5,186	)		(4,697	)
Net income attributable to common stock	$	7,042		$	8,525		$	9,000
Denominator:
Weighted-average shares of common stock - basic		112,763,261			103,479,239			103,469,238
Dilutive effect of stock options to purchase common stock		6,009,890			2,728,644			2,881,235
Dilutive effect of RSUs		19,160			—			—
Dilutive effect of warrants		29,614			—			—
Weighted-average shares of common stock - diluted		118,821,925			106,207,883			106,350,473
Net income per share attributable to common stock
Basic	$	0.06		$	0.08		$	0.09
Diluted		0.06			0.08			0.08

The Company did not have any securities that were excluded from the computation of diluted net income per share attributable to common stock calculations for the periods presented as all options, RSUs and warrants outstanding were considered to be dilutive.

Accrued Liabilities (Additional Information) (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Accrued Liabilities, Current [Abstract]
Other Accrued Liabilities	$ 60

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	December 31,
	2021			2020
Computer equipment	$	4,934		$	4,368
Furniture and fixtures		1,456			976
Leasehold improvements		445			183
Automobile		—			5
Total property and equipment		6,835			5,532
Less: Accumulated depreciation and amortization		(4,791	)		(3,760	)
Property and equipment, net	$	2,044		$	1,772

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).

Stock Split

On May 10, 2021, the Company effected a 5-for-1 forward stock split of its common stock. In connection with the forward stock split, each issued and outstanding share of common stock, automatically and without action on the part of the holders, became five shares of common stock. The par value per share of common stock was not adjusted. All share, per share and related information presented in the consolidated financial statements and accompanying notes have been retroactively adjusted, where applicable, to reflect the impact of the stock split.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and balances have been eliminated upon consolidation.

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to make operating decisions, allocate resources and assess performance. The Company has three operating segments based on geography. The United States segment represents the vast majority of the Company’s consolidated net sales and gross profit. The additional two operating segments, Canada and India, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate. None of the operating segments qualified for aggregation. The Company’s CODM

is its Chief Executive Officer. The CODM evaluates the performance of the Company’s operating segments based on revenue and gross profit. The Company does not analyze discrete segment balance sheet information related to long-term assets. All other financial information is presented on a consolidated basis. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 14.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition, the allowance for credit losses, the lives of tangible and intangible assets, the valuation of acquired intangible assets and the recoverability or impairment of intangible assets, including goodwill, internal-use software development costs, valuation of stock warrants issued, stock-based compensation, and accounting for income taxes. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates.

Foreign Currency

The reporting currency of the Company is the United States Dollar. The Company’s foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated using the exchange rates at the balance sheet date. Revenue and expenses are translated at average exchange rates during the period. Equity transactions are translated using historical exchange rates. The effects of foreign currency translation adjustments are recorded in accumulated other comprehensive income (loss) or (“AOCI”) as a component of stockholders' equity, and related periodic movements are summarized as a line item in the consolidated statements of comprehensive income. Gains and losses from the remeasurement of foreign currency transactions into the functional currency are recognized as foreign exchange gain (loss) in the consolidated statements of operations.

Revenue Recognition

The Company generates revenue primarily from payment transaction fees processed through the Company’s platform. The fees are generated as a percentage of transaction value or a specified fee per transaction. For biller transactions the actual fees are dependent on payment type, payment channel or industry vertical. The payment transaction fees are received directly (i) from billers, who absorb the cost, or from customers in the form of a convenience-type fee, or (ii) from financial institutions. Transaction fees are collected for each completed transaction processed through the platform. The Company also earns other revenue, which primarily consists of maintenance revenue and subscription revenue. Other revenue represented approximately 1.2%, 1.4% and 1.4% of total revenue for the years ended December 31, 2021, 2020 and 2019, respectively.

Contract Assets

Contract assets include unbilled amounts typically resulting from arrangements whereby complete satisfaction of a performance obligation and the right to payment are conditioned on completing additional tasks or services. In addition, the Company recorded a contract asset in connection with a warrant agreement with a customer that was signed in May 2021. Following the guidance in ASC 606, the Company accounts for consideration payable in the form of warrants to a customer as a reduction of the transaction price and therefore, of revenue. The Company has estimated the transaction price related to the revenue for this customer inclusive of the estimated value of the warrants earned and expected to be earned over the term of the contract.

Cost of Revenue

Cost of revenue consists primarily of interchange and assessment fees, processing fees and bank settlement fees paid to third-party payment processors and financial institutions, and personnel-related costs associated with the Company’s customer support teams, including salaries, benefits, and bonuses. Cost of revenue also includes an allocation of hosting and datacenter costs for the Company’s infrastructure and platform environment, telecommunication expenses used by sales and customer support teams, a portion of amortization of capitalized internal-use software development costs, and a portion of amortization of intangible assets acquired through acquisition.

Research and Development Costs

Research and development costs are expensed as incurred, unless they qualify as internal-use software development costs. Research and development expenses consist primarily of employee-related expenses associated with the Company’s research and development staff, including salaries, benefits, stock-based compensation and bonuses.

Advertising Costs

Advertising costs are expensed as incurred and are included in sales and marketing expenses in the consolidated statement of operations. These costs were $1.5 million, $0.5 million and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Income Taxes

The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining its provision for income taxes and deferred tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.

The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts for financial reporting purposes and the tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. The deferred assets and liabilities are measured using the statutorily enacted tax rates anticipated to be in effect when those tax assets and liabilities are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date.

A valuation allowance is established if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income in assessing the need for a valuation allowance.

The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not the position will be sustainable upon examination by the taxing authority, including resolution of any related appeals or litigation processes. This evaluation is based on all available evidence and assumes that the tax authorities have full knowledge of all relevant information concerning the tax position. The tax benefit recognized is measured as the largest amount of benefit which is more likely than not (greater than 50% likely) to be realized upon ultimate settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in income tax expense. The

Company makes adjustments to these reserves in accordance with the income tax guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and operating results.

Stock-based Compensation

The Company measures and recognizes stock-based compensation expense for all stock-based awards, including grants of restricted stock units ("RSUs") and options to purchase stocks granted to employees, outside directors and consultants based on the estimated fair value of the awards on the grant date of the award. The Company estimates the grant date fair value for options using the Black-Scholes option pricing model. The determination of the grant-date fair value using an option-pricing model is affected by the fair value of the Company’s common stock as well as assumptions regarding a number of other complex and subjective variables. These variables include expected stock price volatility over the expected term of the award, actual and projected employee stock option exercise behaviors, the risk-free interest rate for the expected term of the award, and expected dividends. The fair value of an RSU is measured using the market price of the Company's Class A common stock on the date of grant. Compensation cost is recognized on a straight-line basis over the employee requisite service period, which is the stated vesting period of the award, provided that total compensation cost recognized at least equals the pro rata value of the awards that have vested. Forfeitures are accounted for in the period in which they occur. All compensation expense is recorded in operating expenses in the consolidated statements of operations based on the recipient grant.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original or remaining maturities of three months or less when purchased to be cash equivalents, which are composed of primarily bank deposits and government issued securities.

Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market

participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

•

Level 1 inputs - unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date;

•

Level 2 inputs - other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability; and

•

Level 3 inputs - unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The carrying amounts reflected in the consolidated balance sheets for accounts receivable, and accounts payable approximate their respective fair values due to the short maturities of those instruments.

Accounts and Other Receivables and Allowance for Credit Losses

Accounts receivable are recorded at invoiced amounts and do not bear interest. The Company will evaluate its accounts receivable portfolio to determine if an allowance for credit losses is necessary. The development of the allowance for credit losses is based on an expected loss model that considers reasonable and supportable forecasts of future conditions and a review of past due amounts, historical write-off and recovery experience. Past due balances over 90 days and over a specified amount are reviewed individually for collectability and all other balances are reviewed as a portfolio. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet exposure related to its customers. Other receivables included $2.5 million and $2.4 million in rebates related to interchange fees for the years ended December 31, 2021 and 2020, respectively.

The changes in the allowance for credit losses were as follows (in thousands):



	Allowance for Credit Losses
Balance as of December 31, 2019	$	—
Charge-offs		—
Recoveries		—
Provision for credit losses		100
Balance as of December 31, 2020	$	100
Charge-offs		(104	)
Recoveries		—
Provision for credit losses		106
Balance as of December 31, 2021	$	102

Internal-use Software Development Costs

The Company capitalizes qualifying internal-use software development costs related to its platform. The costs consist of personnel costs (including related benefits) that are incurred during the application development stage, as well as implementation costs incurred to fulfill our contracts with customers as they (1) relate directly to the contract, (2) are expected to generate resources that will be used to satisfy the performance obligation under the contract, and (3) are expected to be recovered through revenues generated under the contract. Capitalization of costs begins when two criteria are met: (1) the preliminary project stage is completed, and (2) it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post implementation

operating activities are expensed as incurred. During the years ended December 31, 2021, 2020 and 2019 the Company capitalized $19.3 million, $14.4 million and $10.2 million in software development costs, respectively.

Capitalized costs are amortized over the estimated useful life of the software, which management estimated to be a range of three to five years, and are recorded on a straight-line basis, which represents the manner in which the expected benefit will be derived. Amortization expense is recorded in cost of revenue and operating expenses in the consolidated statement of operations aligned with the internal organizations that are the primary beneficiaries of such assets. During the years ended December 31, 2021, 2020 and 2019, the Company recorded $4.9 million, $3.5 million and $2.0 million of amortization expense in cost of revenue, and $4.5 million, $3.0 million and $2.0 million of amortization expense in operating expenses, respectively.

Property and Equipment, Net

Property and equipment, net is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset as follows:

Computer equipment.................................................................. 3 years

Furniture and fixtures ................................................................. 5 years

Automobile ................................................................................. 5 years

Leasehold improvements are amortized over the shorter of estimated useful life or the remaining lease term. Expenses that improve an asset or extend its remaining useful life are capitalized. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, is removed from the accounts and any resulting gain or loss is reflected in other income (loss) in the consolidated statements of operations. Costs of maintenance or repairs that do not extend the lives of the respective assets are expensed as incurred.

Business Combination

The purchase price of an acquisition is allocated to the tangible and intangible assets and liabilities assumed based on their estimated fair values at the acquisition dates. The excess of total consideration over the fair values of the assets acquired and the liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments would be recorded in the consolidated statements of operations.

Treasury Stock

The Company accounts for treasury stock acquisitions using the cost method. The Company accounts for the retirement of treasury stock by deducting its par value from common stock or Series A preferred stock and reflecting any excess of cost over par value as a deduction from additional paid-in capital in the consolidated balance sheets.

Impairment of Long-lived Assets (Including Goodwill and Intangible Assets)

Long-lived assets with finite lives include property and equipment, capitalized internal-use software development costs, and acquired intangible assets. The Company evaluates long-lived assets, including intangible assets and capitalized internal-use software development costs, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds these estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group.

Goodwill is not amortized but rather tested at the reporting unit level for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. The Company has three reporting units. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge is recorded to goodwill to the extent the carrying value exceeds the fair value, limited to the amount of goodwill. See Note 6 for more information regarding the carrying value of goodwill by reporting unit.

In performing this qualitative assessment, the Company considers the following circumstances as well as others:

•

Changes in general macroeconomic conditions such as a deterioration in general economic conditions; limitations on accessing capital; or other developments in equity and credit markets;

•

Changes in industry and market conditions such as a deterioration in the environment in which the

Company operates; an increased competitive environment; a decline in market-dependent multiples or metrics (in both absolute terms and relative to peers); a change in the market for an entity’s products or services; or a regulatory or political development;

•

Changes in cost factors that have a negative effect on earnings and cash flows; and

•

Decline in overall financial performance (for both actual and expected performance).

The Company completed its annual goodwill impairment test as of November 30, 2021 using a qualitative assessment. The Company did not recognize any impairment of goodwill during the years ended December 31, 2021 or 2020.

Leases

The Company classifies leases as either operating or financing at inception and as necessary at modification. Leased assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not obtain and control its right to use the identified asset until the lease commencement date.

Although it may have a right and an obligation to exchange lease payments for a leased asset from the date of inception, the Company is unlikely to have an obligation to make lease payments before the asset is made available for use; therefore, lease classification, recognition, and measurement are determined at the lease commencement date.

The Company made accounting policy elections, including a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e., leases with expected terms of 12 months or less), and an accounting policy to account for lease and certain non-lease components as a single component for certain classes of assets other than computer equipment leases. For computer equipment leases, the Company has agreements with lease and non-lease components, which are accounted for separately. For these agreements, lease payments are allocated between the lease and non-lease components based on the relative stand-alone price of these components.

The Company has leases for office facilities, computer equipment, and data centers. The Company’s leases have remaining initial lease terms of less than one year to approximately ten years, some of which include options to extend the leases for up to 4 years, and some of which include options to terminate the leases.

Operating leases are included in operating lease ROU assets, and operating lease liabilities on the Company’s consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and in a similar economic environment. The operating lease ROU asset also includes any initial direct costs, lease payments made prior to lease commencement, and lease incentives received. The Company’s lease terms are the noncancelable period including any rent-free periods provided by the lessor and may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. At lease inception, and upon modification or remeasurement, the Company estimates the lease term based on its assessment of extension and termination options that are reasonably certain to be exercised. Lease cost for lease payments is recognized on a straight-line basis over the lease term.

Leased property under finance leases are included in property and equipment, net. Finance lease liabilities are included within accrued liabilities, and finance lease and other finance obligations, net of current portion on the Company’s consolidated balance sheets. Property and equipment under finance leases is generally amortized over the lease term and is included in general and administrative expenses. The interest on the finance lease liabilities is included in interest income, net.

Judgment is required when determining whether any of the Company’s data center contracts contain a lease. The Company concluded a lease exists when the asset is specifically identifiable, substantially all the economic benefit of the asset is obtained, and the right to direct the use of the asset exists during the term of the lease.

Custodial Accounts

The Company has established a relationship with its merchant processors to act as collection and paying agents, whereby a merchant processor receives funds from customers and forwarding such funds to the respective Paymentus client, based on the instructions received from the Company. These merchant processors act as custodians of the cash received and the Company has no legal ownership rights to the funds held in such custodial accounts and does not control the use of these funds. As the Company does not take ownership of the funds, these custodial accounts are not included in the Company’s consolidated balance sheets. The balance of cash in the custodial accounts held by these merchant processors was $47.4 million and $20.5 million as of December 31, 2021 and December 31, 2020, respectively.

Restricted funds held for financial institutions and financial institution funds-in transit

Restricted Funds Held for Financial Institutions and Financial Institution Funds In-Transit

Restricted funds held for financial institutions and the corresponding liability of financial institution funds in-transit represent the timing differences arising between the amounts the Company's sponsor bank receives from the sending financial institutions and the amounts disbursed to the recipient financial institutions. The restricted funds held for financial institutions account is a transaction account maintained at the Company’s sponsor bank for clearing payments from financial institutions (as defined by the U.S. Treasury’s Financial Crimes Enforcement Network) to other financial institutions. Restricted funds held for financial institutions represent restricted cash that, based upon the Company's intent, are restricted solely for satisfying the corresponding obligations to send funds to the various financial institutions.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents, and accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded in the consolidated balance sheets. No customer accounted for more than 10% of revenue for either of the years ended December 31, 2021, 2020 and 2019. One customer accounted for more than 10% of accounts receivable as of December 31, 2021, and no customer accounted for more than 10% of accounts receivable as of December 31, 2020.

Deferred Offering Costs

Deferred offering costs, which consist of direct incremental legal and accounting fees, relating to the Company’s IPO, were initially capitalized and included in prepaid expenses and other current assets on the consolidated balance sheets. Upon consummation of the IPO in May 2021, the Company reclassified $2.0 million of deferred offering costs to additional paid-in capital offsetting the IPO proceeds. There were no material deferred offering costs recorded as of December 31, 2020.

Accounting Pronouncements

The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as non-public business entities, including early

adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below.

Accounting Pronouncements Recently Adopted

In December 2019, the Financial Accounting Standards Board, ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating some exceptions to the general approach in ASC 740, Income Taxes in order to reduce cost and complexity of its application. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, with early adoption permitted. The Company elected to early adopt this standard on January 1, 2021. Adoption of this standard did not have a material impact on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance on January 1, 2020. The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments, which requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected, with further clarifications made more recently. For trade receivables, loans, and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company adopted this guidance on January 1, 2020. The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02, Leases (“Topic 842”) (“ASU 2016-02”).The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. ASU 2016-02 requires the recognition on the balance sheet of a lease liability to make lease payments by lessees and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance will also require significant additional disclosure about the amount, timing and uncertainty of cash flows from leases. The new lease guidance is effective for periods beginning after December 15, 2018 for public entities and January 1, 2021 for non-public companies. The Company early adopted this standard beginning January 1, 2020, using the modified retrospective approach as discussed above. For additional information, see Note 7 – Leases.

Accounting Pronouncements Not Yet Adopted

In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08"). ASU 2021-08 will require companies to apply the definition of a performance obligation under ASU 2014-09, Revenue from contracts with customers (“Topic 606”) to recognize and measure contract assets and contract liabilities relating to contracts with customers that are acquired in a business combination. Under current U.S. GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASU Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Total property and equipment	$ 6,835	$ 5,532
Less: Accumulated depreciation and amortization	(4,791)	(3,760)
Property and equipment, net	2,044	1,772
Computer Equipment [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	4,934	4,368
Furniture And Fixtures [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	1,456	976
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	445	183
Automobiles [Member]
Property Plant And Equipment [Line Items]
Total property and equipment	$ 0	$ 5

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)		12 Months Ended
	May 10, 2021	Dec. 31, 2021 USD ($) Segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Stock split ratio	5
Revenue from other Sources		1.2	1.4	1.4
Advertising cost		$ 1,500,000	$ 500,000	$ 200,000
Rebates for Interchange fees		2,500,000	2,400,000
Capitalized internal-use software development costs		19,300,000	14,389,000	10,222,000
Amortization expense in cost of revenue		4,900,000	3,500,000	2,000,000.0
Amortization expense in operating expenses		$ 4,500,000	3,000,000.0	$ 2,000,000.0
Number of operating segment \| Segment		3
Cash in custodial account		$ 47,400,000	20,500,000
Impairment of goodwill		0	$ 0
Deferred offering costs related to additional-paid-in capital		$ 2,000,000.0
Lease descriptions		The Company’s leases have remaining initial lease terms of less than one year to approximately ten years
Lease, Option to Extend		options to extend the leases for up to 4 years, and some of which include options to terminate the leases.
Computer Equipment [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life		3 years
Furniture and Fixtures [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life		5 years
Automobile [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life		5 years
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Finite-Lived Intangible Asset, Useful Life		3 years
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Finite-Lived Intangible Asset, Useful Life		5 years
Revenue [Member] \| Customer Concentration Risk [Member] \| Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		10.00%	10.00%	10.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		10.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			10.00%

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

. Stock-Based Compensation

In May 2021, the Company’s board of directors adopted, and its stockholders approved, the 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the IPO. The 2021 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company's employees and any of its parent or subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, and performance awards to the Company’s employees, directors and consultants and any of its parent or subsidiary corporations’ employees and consultants. A total of 10,459,000 shares of the Company’s Class A common stock have been reserved for issuance under the 2021 Plan in addition to (i) an annual increase of 4% of the outstanding shares of the Company's common stock, with Class A and Class B common

stock taken together, on the first day of each fiscal year (the "Evergreen Addition") and (ii) upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock awards granted under the 2012 Equity Incentive Plan, an equal number of shares of Class A common stock, such number of shares not to exceed 7,563,990. At December 31, 2021, there were 10,034,803 remaining shares available for the Company to grant under the 2021 Plan. On January 1, 2022, pursuant to the Evergreen Addition, approximately 4.8 million shares of Class A common stock were added to the 2021 Plan issuance reserve.

Stock Options

A summary of the Company’s option activity during the year ended December 31, 2021 was as follows (in thousands, except share and per share amounts):


						Weighted-
				Weighted-		Average
				Average		Remaining		Aggregate
	Options			Exercise Price		Contractual		Intrinsic
	Outstanding			per Share		Life (years)		Value
Outstanding at December 31, 2020		7,509,210		$	4.68		5.80	$	36,580
Options granted		67,397			10.56
Options exercised		(623,720	)		0.51
Options forfeited		(104,227	)		9.02
Outstanding at December 31, 2021		6,848,660		$	5.05		4.98	$	204,977
Exercisable at December 31, 2021		4,970,855		$	3.69		3.98	$	155,520

The weighted average grant date fair value of options granted during the years ended December 31, 2021, 2020 and 2019, was $3.38, $3.71 and $2.59, respectively. Aggregate intrinsic value represents the difference between the exercise price of the options and the fair value of the Company’s common stock. The aggregate intrinsic value of options exercised for the year ended December 31, 2021 was $17.8 million. There were no option exercises in the years ended December 31, 2020 and 2019, respectively.

The fair value of options granted during the years ended December 31, 2021, 2020 and 2019 was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	Year Ended December 31,
	2021			2020			2019
Dividend yield		0.0	%		0.0	%		0.0	%
Risk-free interest rate	0.3 % - 0.8%			0.3 % - 0.4%			2.3%
Expected term (in years)		5			5			5
Expected volatility		38.0	%		50.0	%		29.0	%

The determination of the fair value of stock options on the date of grant using a Black-Scholes option-pricing model is affected by the estimated fair value of the Company’s common stock, as well as assumptions regarding a number of variables that are complex, subjective and generally require significant judgment to determine. The valuation assumptions were determined as follows:

Expected Term

The expected life of options granted to employees was determined by using management’s best estimation of exercise activity.

Risk-Free Interest Rate

The Company utilizes a risk-free interest rate in the option valuation model based on U.S. Treasury zero-coupon issues, with remaining terms similar to the expected term of the options.

Expected Volatility

As the Company does not have an extensive trading history for its common stock, the expected volatility is based on the historical volatility of the Company’s publicly traded industry peers utilizing a period of time consistent with the Company’s estimate of expected term.

Expected Dividend Yield

The Company does not anticipate paying any cash dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero in the option valuation model.

Fair Value of Underlying Common Stock

Prior to the initial public offering, the fair value of the shares of common stock underlying stock options was estimated by the Company. The Company prepared the valuations with the assistance of a third-party valuation firm, utilizing approaches and methodologies consistent with the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation and information provided by management, including historical and projected financial information, prospects and risks, company performance, various corporate documents, capitalization, and economic and financial market conditions. Management, with its third-party valuation firm, also utilized other economic, industry, and market information obtained from other resources considered reliable. After the initial public offering, the Company used the publicly quoted price as reported on the New York Stock Exchange as the fair value of its common stock.

RSUs

In August 2021, the Company began issuing RSUs to certain employees and nonemployees under the 2021 Plan. A summary of the Company’s RSU activity during the year ended December 31, 2021 was as follows:


				Weighted-
				Average
	Number of			Grant Date
	RSU's Outstanding			Fair Value
Awarded and unvested at December 31, 2020		—		$	—
Awards granted		537,570			25.95
Awards vested		—			—
Awards forfeited		(24,933	)		26.37
Awarded and unvested at December 31, 2021		512,637		$	25.93

The fair value of RSU grants is determined based upon the market closing price of the Company's Class A common stock on the date of grant. RSUs vest over the requisite service period, which ranges between four and five years from the date of grant, subject to continued employment for employees and provision of services for nonemployees. No RSUs vested during the year ended December 31, 2021.

Stock-based compensation expense included in the consolidated statements of operations was as follows (in

thousands):


	Year Ended December 31,
	2021		2020		2019
Cost of revenue	$	—	$	—	$	—
Operating expenses
Research and development		517		27		7
Sales and marketing		280		34		12
General and administrative		2,339		1,933		1,566
Total stock-based compensation	$	3,136	$	1,994	$	1,585

At December 31, 2021, there was $5.2 million of total unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan, which is expected to be recognized over a remaining weighted-average period of 2.5 years.

At December 31, 2021, there was $12.4 million of total unrecognized compensation cost related to unvested RSUs granted under the 2021 Plan, which is expected to be recognized over a remaining weighted-average period of 4.3 years.

Equity - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
Equity - Additional Information (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2021	May 31, 2021	May 13, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Preferred stock, shares authorized	5,000,000	5,000,000			0
Preferred stock, par value	$ 0.0001	$ 0.0001			$ 0.0001
Common stock, shares authorized	0	0			150,000,000
Common stock, par value	$ 0.005	$ 0.005		$ 18.38	$ 0.005
Common Stock, Terms of Conversion		Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (i) sale or transfer of such share of Class B common stock; (ii) the death of the Class B common stockholder (or nine months after the date of death if the stockholder is one of the Company’s founders); and (iii) on the first trading day on or after the date on which the outstanding shares of Class B common stock represent less than 10% of the then outstanding Class A and Class B common stock. Following the conversion of all outstanding shares of Class B common stock into Class A common stock, no further shares of Class B common stock will be issued.
Common stock, shares issued	0	0			104,785,651
Preferred stock, $0.0001 par value per share, 5,000,000 and zero shares authorized as of December 31, 2021 and 2020, respectively, none issued and outstanding as of December 31, 2021 and 2020, respectively	$ 0	$ 0			$ 0
Preferred stock, shares issued	0	0			0
Preferred stock, shares outstanding	0	0			0
Warrant Issue				509,370
Fully Vested				382,027
Vesting of the Remaining Shares of the Warrant				127,343
Change in equity valuation	$ 0
Class A Common Stock [Member]
Class Of Stock [Line Items]
Common stock, shares authorized	883,950,000	883,950,000			0
Common Stock, Voting Rights		one
Common stock, par value	$ 0.0001	$ 0.0001			$ 0.0001
Common stock, shares issued	17,251,079	17,251,079			0
Class A Common Stock [Member] \| IPO [Member]
Class Of Stock [Line Items]
Common stock, shares issued			11,500,000
Class B Common Stock [Member]
Class Of Stock [Line Items]
Common stock, shares authorized	111,050,000	111,050,000			0
Common Stock, Voting Rights		one
Common stock, par value	$ 0.0001	$ 0.0001			$ 0.0001
Common stock, shares issued	103,388,082	103,388,082			0
Series A Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, shares authorized	0	0			50,000
Preferred stock, par value	$ 0.01	$ 0.01			$ 0.01
Preferred stock, $0.0001 par value per share, 5,000,000 and zero shares authorized as of December 31, 2021 and 2020, respectively, none issued and outstanding as of December 31, 2021 and 2020, respectively	$ 0	$ 0			$ 0
Dividends, Preferred Stock		$ 34,400,000
Preferred stock, shares issued	0	0			23,333
Preferred stock, shares outstanding	0	0			23,013
Series A Preferred Stock [Member] \| IPO [Member]
Class Of Stock [Line Items]
Preferred stock, $0.0001 par value per share, 5,000,000 and zero shares authorized as of December 31, 2021 and 2020, respectively, none issued and outstanding as of December 31, 2021 and 2020, respectively	$ 57,400,000	$ 57,400,000

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).

Stock Split

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and balances have been eliminated upon consolidation.

Segment Information

Use of Estimates

Foreign Currency

Revenue Recognition

Contract Assets

Contract Liabilities

Contract liabilities relate to fees billed in advance of services provided. The terms of the contract normally require the customer to pay a fixed monthly fee for hosting and maintenance, plus a nonrefundable up-front fee for set-up, integration services, and data conversion at contract inception. The non-refundable up-front fees are typically billed in advance of services provided and are recorded as contract liability in the consolidated balance sheets. These fees are amortized ratably over the term of the agreement and recognized as revenue. The fixed monthly fee is for a promised service of hosting and maintenance. These services are provided over the same period and have the same pattern of transfer to the customer as the payment processing services. They are both stand-ready obligations satisfied ratably over the contractual period, and assessed as a single performance obligation. Therefore, they are recognized in the same manner as the variable consideration.

Assets Recognized From the Costs to Obtain a Contract With a Customer

The Company capitalizes certain costs to obtain contracts with customers, including employee sales commissions, when the commission is tied to new sales and is therefore considered an incremental cost of obtaining a customer. At

contract inception, the Company capitalizes commission costs that the Company expects to recover and that would not have been incurred if the contract had not been obtained. Capitalized costs to obtain contracts of $0.1 million are included in prepaid expenses and other current and long-term assets in the consolidated balance sheets. Some of the Company’s sales compensation paid to the sales force is earned based on the margins earned from the contract over the contract term and is contingent on continued employment with the Company by the salesperson. Sales commissions tied to key operating metrics other than new sales, are not considered incremental costs of obtaining a customer and are expensed in the same period as they are earned, rather than being capitalized. The Company records commission expense within sales and marketing expense in the consolidated statements of operations.

Amortization of capitalized commissions to obtain customer contracts is included in sales and marketing expense in the consolidated statements of operations. The Company utilizes a straight-line method as it best depicts the pattern of transfer of the goods or services to the customer. The Company amortizes these assets over the expected period of benefit, which is typically three to five years. The Company evaluates contract costs for impairment by comparing, on a pooled basis, the expected future net cash flows from underlying customer relationships to the carrying amount of the capitalized contract costs

Cost of Revenue

Research and Development Costs

Advertising Costs

Income Taxes

Stock-based Compensation

Cash and Cash Equivalents

Custodial Accounts

Restricted Funds Held for Financial Institutions and Financial Institution Funds In-Transit

Concentration of Credit Risk

Fair Value Measurements

•

Level 1 inputs - unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date;

•

Accounts and Other Receivables and Allowance for Credit Losses

The changes in the allowance for credit losses were as follows (in thousands):



	Allowance for Credit Losses
Balance as of December 31, 2019	$	—
Charge-offs		—
Recoveries		—
Provision for credit losses		100
Balance as of December 31, 2020	$	100
Charge-offs		(104	)
Recoveries		—
Provision for credit losses		106
Balance as of December 31, 2021	$	102

Deferred Offering Costs

Internal-use Software Development Costs

Property and Equipment, Net

Computer equipment.................................................................. 3 years

Furniture and fixtures ................................................................. 5 years

Automobile ................................................................................. 5 years

Business Combination

Impairment of Long-lived Assets (Including Goodwill and Intangible Assets)

In performing this qualitative assessment, the Company considers the following circumstances as well as others:

•

Changes in general macroeconomic conditions such as a deterioration in general economic conditions; limitations on accessing capital; or other developments in equity and credit markets;

•

Changes in industry and market conditions such as a deterioration in the environment in which the

•

Changes in cost factors that have a negative effect on earnings and cash flows; and

•

Decline in overall financial performance (for both actual and expected performance).

Leases

Treasury Stock

Accounting Pronouncements

Accounting Pronouncements Recently Adopted

Accounting Pronouncements Not Yet Adopted

Revenue (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

The following table presents a disaggregation of revenue from contracts with customers (in thousands):


	Year Ended December 31,
	2021		2020		2019
Payment transaction processing revenue	$	390,703	$	297,494	$	232,379
Other		4,821		4,273		3,399
Total revenue	$	395,524	$	301,767	$	235,778

Leases - Summary of Remaining Lease Payments under Non-Cancelable Operating and Finance Leases (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Operating Leases:
2022	$ 1,723
2023	843
2024	836
2025	847
2026	858
Thereafter	3,692
Total minimum lease payments including interest	8,799
Less imputed interest	(880)
Operating Lease Liability	7,919
Finance Leases:
2022	271
2023	106
2024	0
2025	0
Thereafter	0
Total minimum lease payments including interest	377
Less imputed interest	(11)
Total lease liabilities	$ 366

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Payments for Non Cancellable Agreements

Future minimum payments under other non-cancellable agreements as of December 31, 2021 were as follows (in thousands):


Years Ending December 31,
2022	$	1,586
2023		1,729
2024		615
2025		16
2026		—
Thereafter		—
	$	3,946

Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 8,246
2023	8,042
2024	7,658
2025	6,156
2026	3,269
Thereafter	8,717
Net Carrying Amount	$ 42,088	$ 296

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

7. Leases

The Company enters into operating and finance leases, primarily related to rental of office space, equipment and data centers. Both operating and finance leases have remaining lease terms which range from less than one year to ten years, and often include one or more renewal or termination options. These options are not included in the determination of the lease term at commencement unless it is reasonably certain that the Company will exercise the option. During the year ended December 31, 2021, the Company recorded approximately $2.5 million for an additional right-of-use asset and related operating lease liability for an office lease that commenced in April 2021.

The components of lease cost were as follows (in thousands):


	Year Ended December 31,
	2021		2020
Operating lease cost	$	2,847	$	3,026
Finance lease cost
Depreciation expense		272		302
Interest on finance lease liabilities		16		23
Total finance lease cost		288		325
Short-term lease cost		1,063		345
Total lease cost	$	4,198	$	3,696

Supplemental cash flow information related to leases was as follows (in thousands):


	Year Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	2,755	$	2,652
Operating cash flows for finance leases		16		23
Financing cash flows for finance leases		272		323
Right-of-use assets obtained in exchange of operating lease obligations		2,550		7,678
Property and equipment obtained in exchange of finance lease obligations		—		814

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:


	December 31,
	2021			2020
Weighted-average remaining lease term (years)
Operating leases		8.3			6.7
Finance leases		1.2			2.2
Weighted-average discount rate
Operating leases		2.82	%		2.98	%
Finance leases		3.24	%		3.24	%

The total remaining lease payments under non-cancelable operating and finance leases as of December 31, 2021 were as follows (in thousands):


Years Ending December 31,	Operating Leases			Finance Leases
2022	$	1,723		$	271
2023		843			106
2024		836			—
2025		847			—
2026		858			—
Thereafter		3,692			—
Total minimum lease payments including interest	$	8,799		$	377
Less imputed interest		(880	)		(11	)
Total lease liabilities	$	7,919		$	366

In January 2022, the Company signed a new lease agreement that commences in April 2022 with a lease term of five years, for a total of $4.5 million in future operating lease payments.

Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions

15. Related Party Transactions

Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to the Company’s business and may include terms, conditions and agreements that are not necessarily beneficial to or in the best interest of the Company.

On September 6, 2011, the Company issued a loan to the Company’s Chief Executive Officer for $0.8 million at an interest rate of 2% per annum. The Company recorded the principal amount of $0.8 million as a reduction to additional paid-in capital in the consolidated statements of stockholders’ equity. The Chief Executive Officer and an entity affiliated with him pledged 805 shares of the Company's Series A preferred shares and 1,788,205 common shares as security for the loan. The loan principal and interest were due and payable on September 6, 2026. During the years ended December 31, 2021, 2020 and 2019, the Company recognized an immaterial amount of interest income relating to the loan. At December 31, 2020, the Company had recorded a receivable for accrued interest of $0.2 million, which is included in prepaid expenses and other current assets in the consolidated balance sheets. On March 16, 2021, the Company’s Chief Executive Officer paid in full the loan outstanding in the amount of $0.8 million, plus accrued interest of $0.2 million for a total payment of $1.0 million.

The wife of the Company’s Chief Executive Officer serves as a vice president for the Company. She received aggregate compensation, inclusive of her base salary and bonus of $0.2 million for her employment with the Company for each of the years ended December 31, 2021, 2020 and 2019. In addition, the son of a member of the Company’s board of directors serves as a vice president of the Company and he received aggregate compensation, inclusive of his base salary and bonus, of $0.3 million, $0.3 million and $0.2 million for his employment with the Company for the years ended December 31, 2021, 2020 and 2019, respectively.

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill by Reporting Unit

The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands):


	United States		Other			Total
Balance as of December 31, 2019	$	12,303	$	917		$	13,220
Foreign currency translation adjustments		—		(15	)		(15	)
Balance as of December 31, 2020	$	12,303	$	902		$	13,205
Goodwill acquired(1)		116,216		—			116,216
Foreign currency translation adjustments		—		(8	)		(8	)
Balance as of December 31, 2021	$	128,519	$	894		$	129,413

(1) The goodwill acquired in the year ended December 31, 2021 is related to the Payveris and Finovera acquisitions. See Note 4.

Summary of Intangible Assets

Intangible assets, net consisted of the following (in thousands):


	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted- Average Useful Life (Years)
Technology	$	20,837	$	(8,655	)	$	12,182		4.0
License		2,652		(2,652	)		—		—
Customer relationship		33,830		(8,021	)		25,809		8.0
Software		893		(456	)		437		3.0
Trademark		4,193		(533	)		3,660		4.0
Total	$	62,405	$	(20,317	)	$	42,088


	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted- Average Useful Life (Years)
Technology	$	7,579	$	(7,460	)	$	119		7.0
License		2,652		(2,652	)		—		—
Customer relationship		6,782		(6,782	)		—		—
Software		532		(355	)		177		3.0
Non-compete		330		(330	)		—		—
Trademark		200		(200	)		—		—
Total	$	18,075	$	(17,779	)	$	296

Schedule of Expected Future Amortization Expense

As of December 31, 2021, future amortization expense is expected to be as follows (in thousands):


Years Ending December 31,
2022	$	8,246
2023		8,042
2024		7,658
2025		6,156
2026		3,269
Thereafter		8,717
Total future amortization expense	$	42,088

Property and Equipment, Net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

5. Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	December 31,
	2021			2020
Computer equipment	$	4,934		$	4,368
Furniture and fixtures		1,456			976
Leasehold improvements		445			183
Automobile		—			5
Total property and equipment		6,835			5,532
Less: Accumulated depreciation and amortization		(4,791	)		(3,760	)
Property and equipment, net	$	2,044		$	1,772

Depreciation and amortization expense recorded for property and equipment was $1.1 million, $1.0 million and $0.6 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands):


	United States		Other			Total
Balance as of December 31, 2019	$	12,303	$	917		$	13,220
Foreign currency translation adjustments		—		(15	)		(15	)
Balance as of December 31, 2020	$	12,303	$	902		$	13,205
Goodwill acquired(1)		116,216		—			116,216
Foreign currency translation adjustments		—		(8	)		(8	)
Balance as of December 31, 2021	$	128,519	$	894		$	129,413

(1) The goodwill acquired in the year ended December 31, 2021 is related to the Payveris and Finovera acquisitions. See Note 4.

Intangible Assets

Intangible assets, net consisted of the following (in thousands):


	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted- Average Useful Life (Years)
Technology	$	20,837	$	(8,655	)	$	12,182		4.0
License		2,652		(2,652	)		—		—
Customer relationship		33,830		(8,021	)		25,809		8.0
Software		893		(456	)		437		3.0
Trademark		4,193		(533	)		3,660		4.0
Total	$	62,405	$	(20,317	)	$	42,088


	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted- Average Useful Life (Years)
Technology	$	7,579	$	(7,460	)	$	119		7.0
License		2,652		(2,652	)		—		—
Customer relationship		6,782		(6,782	)		—		—
Software		532		(355	)		177		3.0
Non-compete		330		(330	)		—		—
Trademark		200		(200	)		—		—
Total	$	18,075	$	(17,779	)	$	296

Amortization expense of intangible assets was $2.9 million, $0.6 million and $1.4 million for the years ended December 31, 2021, 2020 and 2019 respectively.

As of December 31, 2021, future amortization expense is expected to be as follows (in thousands):


Years Ending December 31,
2022	$	8,246
2023		8,042
2024		7,658
2025		6,156
2026		3,269
Thereafter		8,717
Total future amortization expense	$	42,088

Geographic Information - Summary of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets, comprising property and equipment assets	$ 2,044	$ 1,772
United States [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets, comprising property and equipment assets	588	717
Other [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets, comprising property and equipment assets	$ 1,456	$ 1,055

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 168,386	$ 46,666
Restricted funds for financial institutions	33,443	0
Accounts and other receivables, net of allowance of $102 and $100	43,935	28,034
Income tax receivable	2,488	2,011
Prepaid expenses and other current assets	8,184	3,117
Total current assets	256,436	79,828
Property and equipment, net of accumulated depreciation and amortization of $4,791 and $3,760	2,044	1,772
Capitalized internal-use software development costs, net	30,888	20,963
Intangible assets, net	42,088	296
Goodwill	129,413	13,205
Operating lease right-of-use assets	7,703	8,322
Deferred tax asset (non-current)	163	270
Other long-term assets	4,207	218
Total assets	472,942	124,874
Current liabilities
Accounts payable	24,748	16,825
Accrued liabilities	12,491	10,201
Financial institution funds- in transit	33,443	0
Operating lease liabilities	1,456	3,010
Contract liabilities	2,173	612
Income tax payable	122	463
Total current liabilities	74,433	31,111
Deferred tax liability (non-current)	3,318	3,499
Operating leases, net of current portion	6,463	5,476
Contract liabilities, net of current portion	1,713	0
Finance leases and other finance obligations, net of current portion	883	412
Total liabilities	86,810	40,498
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock, $0.0001 par value per share, 5,000,000 and zero shares authorized as of December 31, 2021 and 2020, respectively, none issued and outstanding as of December 31, 2021 and 2020, respectively	0	0
Treasury stock at cost, zero and 320 Series A preferred shares; and zero and 1,306,412 common shares as of December 31, 2021 and 2020, respectively	0	(579)
Additional paid-in capital	356,017	29,175
Accumulated other comprehensive income	168	216
Retained earnings	29,935	55,047
Total stockholders’ equity	386,132	84,376
Total liabilities and stockholders' equity	472,942	124,874
Series A Preferred Stock [Member]
Stockholders’ equity
Preferred stock, $0.0001 par value per share, 5,000,000 and zero shares authorized as of December 31, 2021 and 2020, respectively, none issued and outstanding as of December 31, 2021 and 2020, respectively	0	0
Class A Common Stock [Member]
Stockholders’ equity
Common stock, value	1	0
Class B Common Stock [Member]
Stockholders’ equity
Common stock, value	11	0
Class Undefined Common Stock [Member]
Stockholders’ equity
Common stock, value	$ 0	$ 517

Subsequent Events - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended
	Sep. 01, 2021	Dec. 31, 2021
Subsequent Event [Line Items]
Cash payment to acquire business, gross		$ 8.5
Payveris LLC [Member]
Subsequent Event [Line Items]
Cash payment to acquire business, gross	$ 145.5

Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$ 2,755	$ 2,652
Operating cash flows for finance lease	16	23
Financing cash flows for finance leases	272	323
Right-of-use assets obtained in exchange of operating lease obligations	$ 2,550	7,678
Right-of-use assets obtained in exchange of operating lease obligations		$ 814
Weighted-average remaining lease term (years), Operating leases	8 years 3 months 18 days	6 years 8 months 12 days
Weighted-average remaining lease term (years), Finance leases	1 year 2 months 12 days	2 years 2 months 12 days
Weighted-average discount rate, Operating leases	2.82%	2.98%
Weighted-average discount rate, Finance leases	3.24%	3.24%

Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accrued Liabilities, Current [Abstract]
Payroll and employee-related expenses	$ 8,093	$ 6,474
Finance leases and other financing obligations	2,382	1,132
Other accrued liabilities	2,016	2,595
Accrued liabilities	$ 12,491	$ 10,201

Stock-Based compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	May 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance		10,034,803
Weighted average grant date fair value of options granted		$ 3.38	$ 3.71	$ 2.59
Options granted in period		67,397
Aggregate intrinsic value		$ 17.8
Options exercised		623,720	0	0
Total unrecognized compensation cost, recognition period		4 years 3 months 18 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost		$ 12.4
RSUs vested		0
Class A Common Stock [Member] \| Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance					4,800,000
Class A & Class B Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of annual increase of outstanding shares		4.00%
Maximum [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs vest over the requisite service period		5 years
Minimum [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs vest over the requisite service period
Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost		$ 5.2
Total unrecognized compensation cost, recognition period		2 years 6 months
Equity Incentive Plan [Member] \| Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance	10,459,000
Options granted in period	7,563,990

Stock-Based compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 3,136	$ 1,994	$ 1,585
Cost Of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	0	0	0
Research and Development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	517	27	7
Sales and Marketing [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	280	34	12
General and Administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 2,339	$ 1,933	$ 1,566

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Allowance for accounts and other receivables	$ 102	$ 100
Accumulated depreciation and amortization for property and equipment	$ 4,791	$ 3,760
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.005	$ 0.005
Common stock, shares authorized	0	150,000,000
Common stock, shares issued	0	104,785,651
Common stock, shares outstanding	0	103,479,239
Common Shares [Member]
Treasury stock, shares	0	1,306,412
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	0	50,000
Preferred stock, shares issued	0	23,333
Preferred stock, shares outstanding	0	23,013
Treasury stock, shares	0	320
Class A Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	883,950,000	0
Common stock, shares issued	17,251,079	0
Common stock, shares outstanding	17,251,079	0
Class B Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	111,050,000	0
Common stock, shares issued	103,388,082	0
Common stock, shares outstanding	103,388,082	0

Net Income Per Share Attributable to Common Stock - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021 shares
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0
RSU [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 395,524	$ 301,767	$ 235,778
Cost of revenue	274,144	209,140	161,344
Gross profit	121,380	92,627	74,434
Operating expenses
Research and development	34,122	24,510	17,864
Sales and marketing	43,917	31,842	27,989
General and administrative	32,968	17,847	10,210
Total operating expenses	111,007	74,199	56,063
Income from operations	10,373	18,428	18,371
Other income (loss)
Interest (expense) income, net	(6)	52	106
Foreign exchange (loss) gain	(1)	(116)	2
Income before income taxes	10,366	18,364	18,479
Provision for income taxes	(1,066)	(4,653)	(4,782)
Net income	9,300	13,711	13,697
Undeclared dividends on Series A preferred stock	(2,258)	(5,186)	(4,697)
Net income attributable to common stock	$ 7,042	$ 8,525	$ 9,000
Net income per share attributable to common stock
Basic	$ 0.06	$ 0.08	$ 0.09
Diluted	$ 0.06	$ 0.08	$ 0.08
Weighted-average number of shares used to compute net income per share attributable to common stock
Basic	112,763,261	103,479,239	103,469,238
Diluted	118,821,925	106,207,883	106,350,473

Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Equity

10. Equity

Preferred Stock

In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 5,000,000 shares of undesignated preferred stock with a par value of $0.0001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors.

Common Stock

The Company has two classes of common stock: Class A common stock and Class B common stock. In connection with the IPO, the Company’s amended and restated certificate of incorporation authorized the issuance of 883,950,000 shares of Class A common stock and 111,050,000 shares of Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock have a par value of $0.0001 per share, and are referred to as common stock throughout the notes to the consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors.

Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (i) sale or transfer of such share of Class B common stock; (ii) the death of the Class B common stockholder (or nine months after the date of death if the stockholder is one of the Company’s founders); and (iii) on the first trading day on or after the date on which the outstanding shares of Class B common stock represent less than 10% of the then outstanding Class A and Class B common stock. Following the conversion of all outstanding shares of Class B common stock into Class A common stock, no further shares of Class B common stock will be issued.

Series A Preferred Stock

Upon completion of the IPO, the Company used approximately $57.4 million of the net proceeds to redeem all of the issued and outstanding shares of Series A preferred stock (including accrued dividends of $34.4 million). As of December 31, 2021, there were no shares of Series A preferred stock issued and outstanding.

Warrant

On May 13, 2021, the Company entered into a warrant agreement with an affiliate of J.P. Morgan Securities LLC, an underwriter in the IPO, whereas the Company agreed to issue a warrant to such affiliate for up to 509,370 shares of Class A common stock upon completion of the IPO at an exercise price of $18.38 per share. Upon completion of the IPO, 382,027 of the warrant shares had vested and are therefore, exercisable. The vesting of the remaining 127,343 shares of Class A common stock underlying the warrant will be subject to the achievement of certain commercial milestones through December 31, 2025 pursuant to a related commercial agreement. Consistent with classification guidance in ASU Topic 606, the Company accounts for the consideration payable in the form of warrants to a customer as a reduction of the transaction price and, therefore, of revenue as the revenue is earned. The warrant fair value was determined using the Black-Scholes pricing model in accordance with ASC 718, Compensation-Stock Compensation.

During the third quarter of 2021, the Company updated the warrant value recognized based on the expectation that the probability of achievement of certain milestones would be achieved. The increase was recorded using the fair value determined at the time of grant multiplied by the estimated number of remaining warrants expected to vest. This increase was recorded as additional paid-in capital and as a contract asset included in prepaid expenses and other current assets and other long-term assets in the consolidated balance sheets. There were no changes to the valuation in the fourth quarter of 2021.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Business Combinations - Schedule Of Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 129,413		$ 13,205	$ 13,220
Payveris L L C [Member]
Business Acquisition [Line Items]
Accounts receivable	1,026
Prepaid expenses and other current assets	237
Intangible assets	38,498
Property and equipment	77
Goodwill	108,950
Restricted funds held for financial institutions	31,459
Financial institution funds in -transit	(31,459)
Accounts payable	(194)
Accrued liabilities	(265)
Deferred revenue	(2,805)
Business combination, recognized identifiable assets acquired and liabilities assumed, Net	145,524
Finovera Inc [Member]
Business Acquisition [Line Items]
Cash	65	$ 5,000
Accounts receivable	267
Prepaid expenses and other current assets	39
Intangible assets	6,048
Goodwill	7,266
Accounts payable	(85)
Accrued liabilities	(72)
Deferred taxes	(588)
Business combination, recognized identifiable assets acquired and liabilities assumed, Net	$ 12,940

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The components of income before income taxes were as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
United States	$	7,265	$	16,548	$	16,661
Foreign		3,101		1,816		1,818
Total	$	10,366	$	18,364	$	18,479

The provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2021			2020		2019
Current:
Domestic	$	915		$	2,485	$	3,261
Foreign		811			534		241
Total		1,726			3,019		3,502
Deferred:
Domestic		(765	)		1,583		1,071
Foreign		105			51		209
Total		(660	)		1,634		1,280
Provision for income taxes	$	1,066		$	4,653	$	4,782

The effective income tax rate differs from the federal statutory income tax rate applied to the income before provision for income taxes due to the following (in thousands):


	Year Ended December 31,
	2021			2020			2019
Federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes		4.8	%		4.3	%		4.3	%
Non-deductible executive compensation		14.3	%		—	%		—	%
Non-deductible IPO expenses		4.5	%		—	%		—	%
Other permanent differences		0.6	%		(0.3	)%		0.3	%
Excess tax benefit on stock-based compensation		(41.6	)%		—	%		—	%
Difference in prior year tax filings from provision		4.3	%		0.1	%		0.1	%
Foreign tax rate differences		2.5	%		—	%		—	%
Other		—	%		0.2	%		0.2	%
		10.4	%		25.3	%		25.9	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities at December 31, 2021 and 2020 were as follows (in thousands):


	December 31,
	2021			2020
Deferred tax assets:
Stock-based compensation and other accruals	$	1,895		$	1,714
State net operating losses		3,919			70
Foreign tax credit		741			—
Operating lease liabilities		3,732			3,521
Fixed assets		87			197
Other		76			48
Total deferred tax assets		10,450			5,550
Valuation allowance		(744	)		(22	)
Net deferred tax assets	$	9,706		$	5,528
Deferred tax liabilities:
Intangible assets		(9,031	)		(5,046	)
Research and development tax credit carry forward		—			(36	)
Fixed assets		(98	)		(39	)
Operating lease right-of-use assets		(3,602	)		(3,423	)
Foregone foreign tax credit		(130	)		(213	)
Total deferred tax liabilities		(12,861	)		(8,757	)
Net deferred tax liabilities	$	(3,155	)	$	(3,229	)

Reported as:
Deferred tax asset (non-current)	$	163		$	270
Deferred tax liability (non-current)		(3,318	)		(3,499	)
Net deferred tax liabilities	$	(3,155	)	$	(3,229	)

The Company provided a valuation allowance against certain excess foreign tax credits as of December 31, 2021 and 2020 as it was more likely than not the Company will not be able to utilize these credits. The Company also provided a valuation allowance against certain acquired state net operating losses that are not more likely than not to be utilized.

As of December 31, 2021, the Company had $15.1 million of federal and $17.7 million of state net operating loss carryforwards available to offset future taxable income. State net operating losses, if not utilized, will begin to expire in 2031. A portion of these losses were acquired in the acquisition of Finovera, and therefore are subject to change of control provisions, which limit the amount of acquired tax attributes that can be utilized in a given tax year. The Company does not expect the change of control limitations to significantly impact our ability to utilize these attributes. Furthermore, the Company had an immaterial amount of non-refundable federal investment tax credits as of December 31,2021 and 2020 in Canada, which are available to reduce future Canadian taxes and, if unused, begin to expire in 2034.

As of December 31, 2021 and 2020, the total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was not material.

Interest and penalties related to income tax matters are classified as a component of income tax expense and were immaterial for the years ended December 31, 2021, 2020 and 2019. Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next 12 months due to tax examination changes, settlement activities, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, the Company does not anticipate any significant changes to unrecognized tax benefits over the next 12 months.

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and in various international jurisdictions. The Company’s tax filings remain subject to audits by applicable tax authorities for a certain length of time following the tax year to which those filings relate. Tax years 2018 and forward generally remain open for examination for federal and state tax purposes. Tax years 2017 and forward generally remain open for examination for foreign tax purposes.

The Company has not recorded foreign withholding taxes or deferred income tax liabilities related to undistributed earnings of foreign operations of approximately $4.8 million and $2.7 million as of December 31, 2021 and 2020, respectively, since such earnings are considered permanently invested.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income before income taxes were as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
United States	$	7,265	$	16,548	$	16,661
Foreign		3,101		1,816		1,818
Total	$	10,366	$	18,364	$	18,479

The provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2021			2020		2019
Current:
Domestic	$	915		$	2,485	$	3,261
Foreign		811			534		241
Total		1,726			3,019		3,502
Deferred:
Domestic		(765	)		1,583		1,071
Foreign		105			51		209
Total		(660	)		1,634		1,280
Provision for income taxes	$	1,066		$	4,653	$	4,782

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differs from the federal statutory income tax rate applied to the income before provision for income taxes due to the following (in thousands):


	Year Ended December 31,
	2021			2020			2019
Federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes		4.8	%		4.3	%		4.3	%
Non-deductible executive compensation		14.3	%		—	%		—	%
Non-deductible IPO expenses		4.5	%		—	%		—	%
Other permanent differences		0.6	%		(0.3	)%		0.3	%
Excess tax benefit on stock-based compensation		(41.6	)%		—	%		—	%
Difference in prior year tax filings from provision		4.3	%		0.1	%		0.1	%
Foreign tax rate differences		2.5	%		—	%		—	%
Other		—	%		0.2	%		0.2	%
		10.4	%		25.3	%		25.9	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Significant components of the Company's deferred tax assets and liabilities at December 31, 2021 and 2020 were as follows (in thousands):


	December 31,
	2021			2020
Deferred tax assets:
Stock-based compensation and other accruals	$	1,895		$	1,714
State net operating losses		3,919			70
Foreign tax credit		741			—
Operating lease liabilities		3,732			3,521
Fixed assets		87			197
Other		76			48
Total deferred tax assets		10,450			5,550
Valuation allowance		(744	)		(22	)
Net deferred tax assets	$	9,706		$	5,528
Deferred tax liabilities:
Intangible assets		(9,031	)		(5,046	)
Research and development tax credit carry forward		—			(36	)
Fixed assets		(98	)		(39	)
Operating lease right-of-use assets		(3,602	)		(3,423	)
Foregone foreign tax credit		(130	)		(213	)
Total deferred tax liabilities		(12,861	)		(8,757	)
Net deferred tax liabilities	$	(3,155	)	$	(3,229	)

Reported as:
Deferred tax asset (non-current)	$	163		$	270
Deferred tax liability (non-current)		(3,318	)		(3,499	)
Net deferred tax liabilities	$	(3,155	)	$	(3,229	)

Revenue - Additional Information (Details) - USD ($)	12 Months Ended
Revenue - Additional Information (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Reduction in revenue and related contract asset	$ 900,000
Contract asset balance	5,600,000	$ 0
Contract Liabilities	3,900,000	600,000
Contract liabilities	2,173,000	612,000
Remaining Performance Obligation, aggregate amount of transaction price	$ 3,900,000
Remaining Performance Obligation, percentage	90.00%
Expected revenue period	2 years
Fixed consideration related to the future minimum guarantees, contract amount	$ 33,400,000
Acquisitions [Member]
Disaggregation of Revenue [Line Items]
Contract liabilities	2,800,000
Prepaid Expenses and Other Current Assets [Member]
Disaggregation of Revenue [Line Items]
Contract asset balance	1,700,000
Payment Transaction Processing Revenue [Member]
Disaggregation of Revenue [Line Items]
Contract Liabilities	600,000	$ 500,000
Other Long-Term Assets [Member]
Disaggregation of Revenue [Line Items]
Contract asset balance	$ 3,900,000

Net Income Per Share Attributable to Common Stock - Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income	$ 9,300	$ 13,711	$ 13,697
Undeclared dividends on Series A preferred stock	2,258	5,186	4,697
Net income attributable to common stock	$ 7,042	$ 8,525	$ 9,000
Denominator:
Weighter-average shares of common stock - basic	112,763,261	103,479,239	103,469,238
Dilutive effect of stock options to purchase common stock	6,009,890	2,728,644	2,881,235
Dilutive effect of RSUs	19,160	0	0
Dilutive effect of warrants	29,614	0	0
Weighter-average shares of common stock - diluted	118,821,925	106,207,883	106,350,473
Net income (loss) per share attributable to common stock
Basic	$ 0.06	$ 0.08	$ 0.09
Diluted	$ 0.06	$ 0.08	$ 0.08

Business Combinations - Schedule Of Fair Values And Estimated Useful Lives Of Intangible Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 6,048
Payveris L L C [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 38,249
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	8 years
Customer Relationships [Member] \| Payveris L L C [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 26,154
Estimated useful life	8 years
Customer Relationships [Member] \| Finovera Inc [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 893
Estimated useful life	2 years
Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	4 years
Trademarks [Member] \| Payveris L L C [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 3,993
Estimated useful life	4 years
Developed Technology Rights [Member] \| Payveris L L C [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 8,102
Estimated useful life	4 years
Developed Technology Rights [Member] \| Finovera Inc [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 5,155
Estimated useful life	4 years

Geographic Information - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	$ 395,524	$ 301,767	$ 235,778
United States [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	387,242	295,761	230,975
Other [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	$ 8,282	$ 6,006	$ 4,803

- Definition

+ References

+ Details

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 2.9	$ 0.6	$ 1.4

Net Income Per Share Attributable to Common Stock

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income Per Share Attributable to Common Stock

13. Net Income Per Share Attributable to Common Stock

Basic net income per share attributable to common stockholders is computed by deducting the undeclared dividends on the Series A preferred stock from net income to arrive at net income attributable to common stock and dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income per share attributable to common stock is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. The dilutive effect of outstanding options, RSUs and warrants is reflected in diluted net income per share attributable to common stock by application of the treasury stock method. The calculation of diluted net income per share attributable to common stock excludes all anti-dilutive common shares.

The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net income per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.

The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands except share and per share data):


	Year Ended December 31,
	2021			2020			2019
Numerator:
Net income	$	9,300		$	13,711		$	13,697
Undeclared dividends on Series A preferred stock		(2,258	)		(5,186	)		(4,697	)
Net income attributable to common stock	$	7,042		$	8,525		$	9,000
Denominator:
Weighted-average shares of common stock - basic		112,763,261			103,479,239			103,469,238
Dilutive effect of stock options to purchase common stock		6,009,890			2,728,644			2,881,235
Dilutive effect of RSUs		19,160			—			—
Dilutive effect of warrants		29,614			—			—
Weighted-average shares of common stock - diluted		118,821,925			106,207,883			106,350,473
Net income per share attributable to common stock
Basic	$	0.06		$	0.08		$	0.09
Diluted		0.06			0.08			0.08

Commitments and Contingencies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Other commitments, description	The Company has entered into certain non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. Obligations under contracts that are cancellable or with remaining terms of 12 months or less are not included.
Contributions under plan	$ 0	$ 0	$ 0

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Geographic Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Geographic Information

14. Geographic Information

Revenue by geographic area, based on the location of the Company’s users, was as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
United States	$	387,242	$	295,761	$	230,975
Other		8,282		6,006		4,803
Total	$	395,524	$	301,767	$	235,778

Long-lived assets, comprising property and equipment assets, by geographic area were as follows (in thousands):


	December 31,
	2021		2020
United States	$	588	$	717
Other		1,456		1,055
Total	$	2,044	$	1,772

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation, Depletion and Amortization	$ 1.1	$ 1.0	$ 0.6

Accrued Liabilities

12 Months Ended

Dec. 31, 2021

Accrued Liabilities, Current [Abstract]

Accrued Liabilities

8. Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	December 31,
	2021		2020
Payroll and employee-related expenses	$	8,093	$	6,474
Finance leases and other financing obligations		2,382		1,132
Other accrued liabilities		2,016		2,595
	$	12,491	$	10,201

Finance leases and other financing obligations includes the current portion of finance leases related to the acquisition of computer equipment and short-term insurance premium financing arrangements. Other accrued liabilities includes $ 0.06 million related to Class A common stock issuable for the Payveris acquisition.

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended	12 Months Ended
	Sep. 02, 2021	Sep. 01, 2021	Dec. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]
Purchase price of acquisition			$ 8,500
Cash purchase price				$ 57,400	$ 290	$ 1,370
Issuance of shares						100
Value of shares in acquisition						$ 100
Common Class A [Member]
Restructuring Cost and Reserve [Line Items]
Issuance of shares				68,229
Value of shares in acquisition				68,229
Payveris L L C [Member]
Restructuring Cost and Reserve [Line Items]
Purchase price of acquisition		$ 145,500
Cash purchase price		$ 85,100
Payveris L L C [Member] \| Common Class A [Member]
Restructuring Cost and Reserve [Line Items]
Number of shares issued for business acquisition		2,364,270
Common stock fair value		$ 60,400
Payveris L L C [Member] \| Accrued Liabilities [Member] \| Common Class A [Member]
Restructuring Cost and Reserve [Line Items]
Issuance of shares (in shares)		2,494
Issuance of shares		$ 60
Value of shares in acquisition		$ 60
Finovera Inc [Member]
Restructuring Cost and Reserve [Line Items]
Cash	$ 5,000		$ 65	65
Cash purchase price	12,900
Common stock fair value	$ 7,900
Acquisition cost incurred				$ 1,700
Finovera Inc [Member] \| Common Class A [Member]
Restructuring Cost and Reserve [Line Items]
Number of shares issued for business acquisition	293,506
Finovera Inc [Member] \| Accrued Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Cash held back for acquisition closing	$ 800

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Accrued Liabilities, Current [Abstract]

Summary of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	December 31,
	2021		2020
Payroll and employee-related expenses	$	8,093	$	6,474
Finance leases and other financing obligations		2,382		1,132
Other accrued liabilities		2,016		2,595
	$	12,491	$	10,201

Stock-Based compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Options Outstanding, Beginning	7,509,210
Options granted	67,397
Options exercised	(623,720)	0	0
Options forfeited	(104,227)
Options Outstanding, Ending	6,848,660	7,509,210
Options Outstanding, Exercisable	4,970,855
Weighted Average Exercise Price, Beginning	$ 4.68
Weighted Average Exercise Price, Granted	10.56
Weighted Average Exercise Price, Exercised	0.51
Weighted Average Exercise Price, Forfeited	9.02
Weighted Average Exercise Price, Ending	5.05	$ 4.68
Weighted Average Exercise Price, Exercisable	$ 3.69
Weighted Average Remaining Contractual Term (years)	4 years 11 months 23 days	5 years 9 months 18 days
Weighted Average Remaining Contractual Term (years), Exercisable	3 years 11 months 23 days
Aggregate Intrinsic Value, Beginning	$ 36,580
Aggregate Intrinsic Value, Ending	204,977	$ 36,580
Aggregate Intrinsic Value, Exercisable	$ 155,520

Organization and Description of Business (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Subsidiary Sale Of Stock [Line Items]
Common stock, shares issued		0	104,785,651
Proceeds from initial public offering, net of underwriter's discounts and commissions		$ 224,595
Common stock, shares outstanding		0	103,479,239
Proceeds from private placement		$ 50,000
IPO [Member]
Subsidiary Sale Of Stock [Line Items]
Issuance of shares (in shares)		7,500
Class A Common Stock [Member]
Subsidiary Sale Of Stock [Line Items]
Common stock, shares issued		17,251,079	0
Common stock, shares outstanding		17,251,079	0
Class A Common Stock [Member] \| IPO [Member]
Subsidiary Sale Of Stock [Line Items]
Common stock, shares issued	11,500,000
Shares issued, price per share	$ 21.00
Proceeds from initial public offering, net of underwriter's discounts and commissions	$ 224,600
Underwriting discounts and commissions	16,900
Direct Offering Expenses	$ 2,000
Class A Common Stock [Member] \| Over-Allotment Option [Member]
Subsidiary Sale Of Stock [Line Items]
Issuance of shares (in shares)	1,500,000
Class A Common Stock [Member] \| Private Placement [Member]
Subsidiary Sale Of Stock [Line Items]
Common stock, shares issued	2,380,950
Sale of stock, price per share	$ 21.00
Proceeds from private placement	$ 50,000
Class B Common Stock [Member]
Subsidiary Sale Of Stock [Line Items]
Common stock, shares issued		103,388,082	0
Common stock, shares outstanding		103,388,082	0
Class B Common Stock [Member] \| IPO [Member]
Subsidiary Sale Of Stock [Line Items]
Common stock, shares outstanding	103,479,239

Stock Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded and unvested, Beginning Balance \| shares \| shares	0
Awards, Granted \| shares \| shares	537,570
Awards, Vested \| shares \| shares	0
Awards,Forfeited \| shares \| shares	(24,933)
Awarded and unvested, Ending Balance \| shares \| shares	512,637
Weighted Average Grant-Date Fair Value, Unvested, Beginning Balance \| $ / shares \| $ / shares	$ 0
Weighted Average Grant-Date Fair Value, Granted \| $ / shares \| $ / shares	25.95
Weighted Average Grant-Date Fair Value, Vested \| $ / shares \| $ / shares	0
Weighted Average Grant-Date Fair Value, Forfeited \| $ / shares \| $ / shares	26.37
Weighted Average Grant-Date Fair Value, Unvested, Ending Balance \| $ / shares \| $ / shares	$ 25.93

Business Combinations

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Business Combinations

4. Business Combinations

Payveris, LLC

On September 1, 2021, the Company completed its acquisition of Payveris, LLC ("Payveris") by acquiring all outstanding equity interests for a total purchase price of approximately $145.5 million, comprised of $85.1 million in cash and 2,364,270 shares of the Company's Class A common stock with a fair value of approximately $60.4 million, of which 2,494 shares of the Company's Class A common stock with an approximate value of $0.06 million are subject to final issuance and is currently recorded in accrued liabilities in the consolidated balance sheets. Payveris is a payments processing company for financial institutions. The acquisition is expected to increase the addressable market opportunity for the Company's existing solutions while also enhancing Payveris’ platform with real-time capabilities, enhanced electronic bill presentment and additional payment options for banks, credit unions and financial institutions of all sizes.

The acquisition was accounted for as a business combination and, accordingly, the total fair value of purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their fair values on the acquisition date. The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands):


Accounts receivable	$	1,026
Prepaid expenses and other current assets		237
Intangible assets, includes software acquired		38,498
Property and equipment		77
Goodwill		108,950
Restricted funds held for financial institutions		31,459
Financial institution funds in-transit		(31,459	)
Accounts payable		(194	)
Accrued liabilities		(265	)
Deferred revenue		(2,805	)
Total	$	145,524

The purchase price allocation is preliminary. The Company continues to collect information with regard to its estimates and assumptions, including potential liabilities and contingencies. The Company will record adjustments to the fair value of the net assets acquired and goodwill within the twelve months measurement period, if necessary. The Company recorded a measurement period adjustment of $8.5 million during the fourth quarter of 2021 to decrease trademarks and increase goodwill related to the refinement of inputs of the acquisition valuation.

The goodwill recognized was primarily attributed to increased synergies that are expected to be achieved from the integration of Payveris and the assembled workforce. The goodwill is deductible for income tax purposes.

The fair values and estimated useful lives of the acquired intangible assets by category were as follows (in thousands, except years):


	Fair Value		Useful Life (Years)
Customer Relationships	$	26,154		8.0
Trademarks		3,993		4.0
Developed Technology		8,102		4.0
Total	$	38,249

Finovera, Inc.

On September 2, 2021, the Company completed its acquisition of Finovera by acquiring all outstanding shares for a total purchase price of approximately $12.9 million, net of cash acquired, comprised of $5.0 million in cash of which $0.8 million is being held back by the Company for a period of twenty-four months following the transaction closing date and is recorded in finance leases and other finance obligations, net of current portion in the consolidated balance sheets, and 293,506 shares of the Company's Class A common stock with a fair value of approximately $7.9 million. Finovera is a bill aggregation technology provider for financial institutions. The acquisition of Finovera is expected to increase the addressable market opportunity for the Company's biller and financial institution solutions by, among other things, increasing the availability of certain bill data.


Cash	$	65
Accounts receivable		267
Intangible assets		6,048
Prepaid expenses and other		39
Goodwill		7,266
Accounts payable		(85	)
Accrued liabilities		(72	)
Deferred taxes		(588	)
Total	$	12,940

The goodwill recognized was primarily attributed to increased synergies that are expected to be achieved from the integration of Finovera and the assembled workforce. The goodwill is not deductible for income tax purposes.

The fair values and estimated useful lives of the acquired intangible assets by category were as follows (in thousands, except years):


	Fair Value		Useful Life (Years)
Developed Technology	$	5,155		4.0
Customer Relationships		893		2.0
Total	$	6,048

The revenue and expenses of the acquired businesses have been included in the Company's consolidated financial results since the acquisition date. Revenues and expenses related to these acquisitions and pro forma results of operations have not been presented for the years ended December 31, 2021 and 2020 because the effects of these acquisitions was not material to the Company's overall operations.

The Company incurred costs related to these acquisitions of approximately $1.7 million for the year ended December 31, 2021. All acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in the consolidated statements of operations.

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 15,100
Non-refundable federal investment tax credits	Company had an immaterial amount of non-refundable federal investment tax credits as of December 31,2021 and 2020 in Canada, which are available to reduce future Canadian taxes and, if unused, begin to expire in 2034.	Company had an immaterial amount of non-refundable federal investment tax credits as of December 31,2021 and 2020 in Canada, which are available to reduce future Canadian taxes and, if unused, begin to expire in 2034.
Tax credit carryforward expiration year	2034
Unrecognized Tax Benefits	$ 0	$ 0
Undistributed earnings of foreign operations	4,800	$ 2,700
State
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 17,700

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

A summary of the Company’s option activity during the year ended December 31, 2021 was as follows (in thousands, except share and per share amounts):


						Weighted-
				Weighted-		Average
				Average		Remaining		Aggregate
	Options			Exercise Price		Contractual		Intrinsic
	Outstanding			per Share		Life (years)		Value
Outstanding at December 31, 2020		7,509,210		$	4.68		5.80	$	36,580
Options granted		67,397			10.56
Options exercised		(623,720	)		0.51
Options forfeited		(104,227	)		9.02
Outstanding at December 31, 2021		6,848,660		$	5.05		4.98	$	204,977
Exercisable at December 31, 2021		4,970,855		$	3.69		3.98	$	155,520

Schedule of Stock Option Grant Using Black-Scholes Option Pricing Model With Assumptions

The fair value of options granted during the years ended December 31, 2021, 2020 and 2019 was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	Year Ended December 31,
	2021			2020			2019
Dividend yield		0.0	%		0.0	%		0.0	%
Risk-free interest rate	0.3 % - 0.8%			0.3 % - 0.4%			2.3%
Expected term (in years)		5			5			5
Expected volatility		38.0	%		50.0	%		29.0	%

Summary of RSU Activity

A summary of the Company’s RSU activity during the year ended December 31, 2021 was as follows:


				Weighted-
				Average
	Number of			Grant Date
	RSU's Outstanding			Fair Value
Awarded and unvested at December 31, 2020		—		$	—
Awards granted		537,570			25.95
Awards vested		—			—
Awards forfeited		(24,933	)		26.37
Awarded and unvested at December 31, 2021		512,637		$	25.93

Summary of Stock Based Compensation Expense

Stock-based compensation expense included in the consolidated statements of operations was as follows (in

thousands):


	Year Ended December 31,
	2021		2020		2019
Cost of revenue	$	—	$	—	$	—
Operating expenses
Research and development		517		27		7
Sales and marketing		280		34		12
General and administrative		2,339		1,933		1,566
Total stock-based compensation	$	3,136	$	1,994	$	1,585

Goodwill and Intangible Assets - Summary of Goodwill by Reporting Units (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Goodwill [Line Items]

Beginning Balance

$ 13,205

$ 13,220

Goodwill acquired

^[1]

116,216

Foreign currency translation adjustments

(8)

(15)

Ending Balance

129,413

13,205

United States [Member]

Goodwill [Line Items]

Beginning Balance

12,303

Goodwill acquired

^[1]

116,216

Foreign currency translation adjustments

Ending Balance

128,519

12,303

Other [Member]

Goodwill [Line Items]

Beginning Balance

902

917

Goodwill acquired

^[1]

Foreign currency translation adjustments

(8)

(15)

Ending Balance

$ 894

$ 902

[1]	(1) The goodwill acquired in the year ended December 31, 2021 is related to the Payveris and Finovera acquisitions. See Note 4.

Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease cost	$ 2,847	$ 3,026
Depreciation expense	272	302
Interest on finance lease liabilities	16	23
Total finance lease cost	288	325
Short-term lease cost	1,063	345
Total lease cost	$ 4,198	$ 3,696

Commitments and Contingencies - Schedule of Future Minimum Payments for Non Cancellable Agreements (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 1,586
2023	1,729
2024	615
2025	16
2026	0
Thereafter	0
Other commitment	$ 3,946

Stock-Based compensation - Schedule of Stock Option Grant Using Black-Scholes Option Pricing Model With Assumptions (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate, minimum			2.30%
Expected term (in years)	5 years	5 years	5 years
Expected volatility, maximum	38.00%	50.00%	29.00%
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, minimum	0.30%	0.30%
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, maximum	0.80%	0.40%

Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Sep. 06, 2011	Sep. 30, 2021	Dec. 31, 2021	Mar. 16, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Loan Principal and Interest Due and Payable Date		Sep. 06, 2026
Payment of loan				$ 1.0
Accrued interest					$ 0.2
Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Number of shares pledged as security for loan	805
Common Shares [Member]
Related Party Transaction [Line Items]
Principal amount of loan as reduction to additional paid-in capital	$ (0.8)
Number of shares pledged as security for loan	1,788,205
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Issued a loan to related party	$ 0.8
Loan Interest Rate	2.00%
Payment of loan				0.8
Aggregate compensation			$ 0.2		0.2	$ 0.2
Accrued interest				$ 0.2
Vice President [Member]
Related Party Transaction [Line Items]
Aggregate compensation			$ 0.3		$ 0.3	$ 0.2

Organization and Description of Business

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

1. Organization and Description of Business

Description of Business

Paymentus Holdings, Inc. and its wholly owned subsidiaries (“Paymentus” or “the Company”) provides electronic bill presentment and payment services, enterprise customer communication and self-service revenue management to billers through a Software-as-a-Service, (“SaaS”), secure, omni-channel technology platform. The platform seamlessly integrates into a biller’s core financial and operating systems to provide flexible and secure access to payment processing of credit cards, debit cards, eChecks and digital wallets across a significant number of channels including online, mobile, IVR, call center, chatbot and voice-based assistants. Paymentus was incorporated in the state of Delaware on September 2, 2011 with office locations in Charlotte, North Carolina, Richmond Hill, Ontario (Canada), Blacksburg, Virginia, Cromwell, Connecticut, Redmond, Washington and Delhi and Bangalore (India). The Company was headquartered in Charlotte, North Carolina until 2020 when the Company moved its headquarters to Redmond, Washington.

Initial Public Offering and Private Placement

In May 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 11,500,000 shares of its Class A common stock at $21.00 per share, including 1,500,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $224.6 million after deducting underwriting discounts and commissions of $16.9 million. The Company incurred direct offering expenses of $2.0 million.

In connection with the IPO:

•

all 103,479,239 shares of the Company’s outstanding common stock automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis; and

•

entities affiliated with Accel-KKR purchased 2,380,950 shares of the Company’s Class A common stock at $21.00 per share in a concurrent private placement that closed immediately subsequent to the closing of the IPO. The Company received aggregate proceeds of $50.0 million in this concurrent private placement and did not pay underwriting discounts or commissions with respect to the shares of Class A common stock that were sold in the private placement.

Label	Element	Value
Share Price	us-gaap_SharePrice	$ 35.50

Income Taxes - The income before provision for income taxes due (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	21.00%
State taxes	4.80%	4.30%	4.30%
Non-deductible executive compensation	14.30%
Non-deductible IPO expenses	4.50%
Other permanent differences	0.60%	(0.30%)	0.30%
Excess tax benefit on stock-based compensation	(41.60%)
Difference in prior year tax filings from provision	4.30%	0.10%	0.10%
Foreign tax rate differences	2.50%
Other		0.20%	0.20%
Effective tax rate	10.40%	25.30%	25.90%

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Other Commitments

The Company has entered into certain non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. Obligations under contracts that are cancellable or with remaining terms of 12 months or less are not included.

Future minimum payments under other non-cancellable agreements as of December 31, 2021 were as follows (in thousands):


Years Ending December 31,
2022	$	1,586
2023		1,729
2024		615
2025		16
2026		—
Thereafter		—
	$	3,946

401(k) Plan

The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. The Company did not make any matching contributions to the 401(k) plan for the years ended December 31, 2021, 2020 and 2019.

Legal Matters

The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current legal proceedings will have a material adverse effect on its financial position, results of operations, or cash flows as of and for the years ended December 31, 2021, 2020 and 2019.

Indemnification

The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers, and the Company’s officers, directors, and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims due to the Company’s activities or non-compliance with obligations or representations made by the Company. The Company seeks to limit, or cap, its indemnification exposure in its commercial and other contracts. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision.