Financial Analysis

Commitment and Contingencies Purchase Obligation The Company has entered into agreements to purchase goods and services in the ordinary course of business. As of December 31, 2025, these remaining purchase commitments for future periods are as follows: (in thousands) 2026 $ 28,085 2027 7,922 2028 4,640 2029 677 Total purchase commitments $ 41,324 Indemnifications The Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company's bylaws, under which it must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship, and (iii) contracts under which the Company may be required to indemnify customers or resellers from certain liabilities arising from potential infringement of intellectual property rights, as well as potential damages caused by limited product defects. To date, the Company has not incurred and has not recorded any liability in connection with such indemnifications. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors. Legal Proceedings From time to time the Company may become involved in legal proceedings or be s …

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Employee Benefits Plan The Companys 401(k) Plan was established in 2000 to provide retirement and incidental benefits for its employees. As allowed under section 401(k) of the Internal Revenue Code, the 401(k) Plan provides tax-deferred salary deductions for eligible employees. Contributions to the 401(k) Plan are limited to a maximum amount as set periodically by the Internal Revenue Service. For the years ended December 31, 2025 , 2024 and 2023, the Company made contributions to the 401(k) Plan of $4.5 million, $4.4 million and $4.1 million, respectively. The Company contributes to a Provident Fund Plan for its employees in India, which is a defined contribution plan set up in accordance with local labor and tax laws. Gratuity is also paid by the Company to eligible employees in India in accordance with Payment of Gratuity Act, 1972. For the years ended December 31, 2025 , 2024 and 2023, the Company contributed $4.0 million, $3.2 million and $2.3 million, respectively, to those plans. …

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Revenues by sales channel are as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Direct $ 337,998 $ 325,428 $ 314,988 Partner 331,127 282,143 239,470 Total $ 669,125 $ 607,571 $ 554,458

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Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Companys financial instruments, including certain cash equivalents, accounts receivable, accounts payable and accrued liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances. The Company measures and reports certain cash equivalents, marketable securities, derivative foreign currency forward contracts at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2 - Valuations based on other than quoted prices in active markets for identical assets and liabilities, including quoted prices for identical assets or liabilities in less active or inactive markets, quoted prices for similar assets or liabilities in active markets, or inputs other than quoted prices that are observable for su …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA permanently extends and modifies certain domestic and international provisions from the 2017 Tax Cuts and Jobs Act (TCJA) and phases out certain provisions from the 2022 Inflation Reduction Act. Beginning in 2025, the OBBBA provides an elective deduction for domestic research and development expenses and a reinstatement of elective 100% first-year bonus depreciation. Some international provisions of the OBBBA will not be effective until 2026 and forward. The Company has recognized the effects of the OBBBA provisions in its financial results to the extent they are applicable to the year ended December 31, 2025. The Company will continue to monitor the impact of the OBBBA and the range of potential outcomes, which will depend on facts in each year and anticipated guidance from the U.S. Department of the Treasury. The Companys geographical breakdown of income before income taxes is as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Domestic $ 216,666 $ 192,394 $ 164,958 Foreign 30,162 17,428 13,693 Income before income taxes $ 246,828 $ 209,822 $ 178,651 Income tax provision consists of the following: Year Ended December 31, 2025 2024 2023 (in thousands) Current Federal $ 23,906 $ 39,989 $ 32,405 State 5,535 5,885 6,061 Foreign 10,784 9,837 5,218 Current income tax provision 40,225 55,711 43,684 Deferred Federal 8,372 (18,470) (13,584) State 682 (599) (2,009) Forei …

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Leases The Company leases certain offices, computer equipment and its shared cloud platform facilities under non-cancelable operating leases for varying periods through 2034. While under the Company's lease agreements the Company has options to extend its certain leases, the Company has not included renewal options in determining the lease terms for calculating its lease liabilities, as these options are not reasonably certain of being exercised. Lease expense was $14.8 million, $16.6 million and $16.1 million for the years ended December 31, 2025 , 2024 and 2023, respectively. Supplemental cash flow information related to operating leases was as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Cash payments included in the measurement of lease liabilities $ 12,336 $ 14,720 $ 14,984 Lease liabilities arising from obtaining right-of-use assets $ 14,559 $ 30,639 $ 121 The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows: December 31, 2025 2024 Weighted average remaining lease term (years) 5.8 4.2 Weighted average discount rate 8.0 % 7.4 % Maturities of the Company's operating lease liabilities as of December 31, 2025 are as follows: (in thousands) 2026 $ 11,043 2027 12,698 2028 12,529 2029 10,719 2030 5,507 2031 and thereafter 13,306 Total minimum lease payments 65,802 Less: interest (13,528) Present value of net minimum lease payments 52,274 Less: lease liabilities, current (7,315) Leas …

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"Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures , requiring improvements to income tax disclosures. The new ASU requires disclosure of disaggregated information about the effective tax rate and income taxes paid. ASU 2023-09 should be applied prospectively, although retrospective application is permitted. The requirements of the ASU are effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company's annual reporting requirements will be effective for fiscal year 2025. The Company adopted this ASU during fiscal year 2025 on a prospective basis. See Note 11, ""Income Taxes"" for the additional required disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03 - Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , requiring more detailed information about the types of expenses included in certain expense captions presented on the consolidated statements of operations. Additionally, this amendment requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of selling expenses. The requirements of the ASU …

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"Revenue from Contracts with Customers The Company records deferred revenue when cash payments are received or due in advance of its performance obligations offset by revenue recognized in the period. Revenues of $369.9 million and $332.3 million were recognized during the years ended December 31, 2025 and December 31, 2024 , respectively, which amounts were included in the deferred revenue balances of $395.7 million and $364.9 million as of December 31, 2024 and December 31, 2023 , respectively. The Company's payment terms vary by the type and location of its customers. The term between invoicing and when payment is due is not significant. In certain circumstances, based on the credit quality of the customer, the Company requires payment before the products or services are delivered to the customer. The following table sets forth the expected revenue from all remaining performance obligations as of December 31, 2025: (in thousands) 2026 $ 322,984 2027 142,494 2028 46,875 2029 3,867 2030 1,711 2030 and thereafter 68 Total $ 517,999 Revenues allocated to remaining performance obligations represents the transaction price of noncancelable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals. The Company applied the short-term contract exemption to exclude the remaining performance obligations that are part of a contra …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment and Geographic Area Information Under ASC 280 Segment Reportin g, operating segments are defined as components of an entity about which separate financial information is evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance. The Company operates in one operating segment and has only one reportable segment. The Companys chief operating decision maker is the Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. All of the Companys principal operations and decision-making functions are located in the United States. The key measure of segment profit or loss that the CODM uses to allocate resources and in assessing performance is the Companys consolidated net income, as reported on the Consolidated Statements of Operations. The CODM uses net income to monitor actual results against budgeted and prior period operating results for the purpose of evaluating operational efficiency, and to evaluate income generated from the assets in making strategic decisions on organizational resource allocation, as well as to benchmark segment performance against industry competitors. The CODM manages the business using consolidated expense information. The following table sets forth the Company's reported segment revenue, segment profit or loss, and significant segment expenses: Year Ended December 31, 2025 2024 2023 (in thousands) Revenues $ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing