Company: EVCM
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001853145-25-000017
Chunk: 45

Company: EverCommerce Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 45
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 unaudited condensed consolidated balance sheets. Revenue recognized from the contract liability balance at December 31, 2024 was $16.3 million for the three months ended March 31, 2025. Customer deposits: Customer deposits relate to payments received in advance for contracts, which allow the customer to terminate a contract and receive a pro rata refund for the unused portion of payments received to date.Accounts ReceivableActivity in our allowance for expected credit losses is as follows as of:March 31,20242023(in thousands)Allowance for expected credit losses, beginning of year$2,283 $3,328 Bad debt expense322 492 Write-offs, net of recoveries(552)(1,025)Disposition of Fitness Solutions— (96)Transfer to held for sale— (53)Allowance for expected credit losses, end of period$2,053 $2,646 Remaining Performance Obligations Remaining performance obligations represent the transaction price of unsatisfied or partially satisfied performance obligations within contracts with an original expected contract term that is greater than one year for which fulfillment of the contract has started as of the end of the reporting period. Contracts that include 30-day termination rights are considered to be contracts with a term of one month and are therefore excluded from remaining performance obligations. Remaining performance obligations generally relate to those which are stand-ready in nature, as found within the subscription revenue streams. The aggregate amount of transaction consideration allocated to remaining performance obligations as of March 31, 2025 was $19.1 million. The Company expects to recognize approximately 61% of its remaining performance obligations as revenue within the next year, 29% of its remaining performance obligations as revenue the subsequent year, 8% of its remaining performance obligations as revenue in the third year, and the remainder during the two-year period thereafter.

9

EverCommerce Inc.Notes to Unaudited Condensed Consolidated Financial Statements

Cost to Obtain and Fulfill a Contract

Assets resulting from costs to obtain contracts are included within prepaid expenses and other current assets for short-term balances and other non-current assets for long-term balances on the Company’s unaudited condensed consolidated balance sheets. The costs to obtain contracts are amortized over five years, which corresponds with the useful life of the related technology. Short-term assets were $9.2 million and $8.9 million at March 31, 2025 and December 31, 2024, respectively, and long-term assets were $15.9 million and