Company: EVCM
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001853145-25-000009
Chunk: 158

Company: EverCommerce Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 158
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 credit losses, beginning of year$6,183 $4,670 Beginning balance adjustment due to implementation of the new credit loss standard— 1,309 Bad debt expense4,660 6,016 Write-offs, net of recoveries(5,175)(5,812)Disposition of Fitness Solutions(141)— Allowance for expected credit losses, end of year$5,527 $6,183 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 

II-37

   EverCommerce Inc.Notes to Consolidated Financial Statements

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 and marketing technology solutions revenue streams. The aggregate amount of transaction consideration allocated to remaining performance obligations as of December 31, 2024 was $20.2 million. The Company expects to recognize approximately 60% of its remaining performance obligations as revenue within the next year, 29% of its remaining performance obligations as revenue the subsequent year, 9% of its remaining performance obligations as revenue in the third year, and the remainder during the two-year period thereafter.Cost to Obtain and Fulfill a ContractAssets 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 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 $10.2 million and $8.6 million at December 31, 2024 and 2023, respectively, and long-term assets were $18.5 million and $17.9 million at December 31, 2024 and 2023, respectively. The Company recorded $6.7 million, $5.7 million and $4.3 million of amortization expense related to assets for the years ended December 31, 2024, 2023 and 2022, respectively, which is included in sales and marketing expense on the consolidated statements of operations and comprehensive loss, as well as $3.1 million, $2