0001827090-24-000037 | 10-Q | XBRL Viewer

Accrued Expenses and Other Liabilities

9 Months Ended

Sep. 30, 2024

Accrued Liabilities, Current [Abstract]

Accrued expenses consist of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Accrued compensation	$	26,470	$	28,624
Legal and professional accruals	2,627		3,913
Interest payable	130		2,351
Income taxes payable	1,700		1,010
Short-term contingent consideration liabilities	20,870		18,410
Other	1,497		2,471
Total accrued expenses	$	53,294	$	56,779

Other long-term liabilities consist of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Uncertain tax position liability	$	1,308	$	2,381
Contingent consideration	23,607		36,828
Total other long-term liabilities	$	24,915	$	39,209

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, among other estimates, assumptions used in the allocation of the transaction price to separate performance obligations, estimates towards the measure of progress of completion on fixed-price service contracts, the determination of fair values and useful lives of long-lived assets as well as intangible assets, goodwill, allowance for credit losses for accounts receivable, recoverability of deferred tax assets, recognition of deferred revenue, valuation of interest rate swaps, determination of fair value of equity-based awards, measurement of fair value of contingent consideration, and assumptions used in testing for impairment of long-lived assets. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements.

Use of Estimates

Unaudited Interim Financial Statements

The accompanying condensed consolidated balance sheet as of September 30, 2024, the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30,

2024 and 2023, the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2024 and 2023, the condensed consolidated statements of cash flows for the nine months ended September 30, 2024 and 2023, and the related interim disclosures are unaudited.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. These unaudited condensed consolidated financial statements include all adjustments necessary to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s 2023 audited consolidated financial statements and notes thereto.

Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The ASU requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this ASU on the disclosures in our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures". The ASU requires disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The ASU will be effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on the disclosures in our consolidated financial statements.

Principles of Consolidation

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

Fair Value Measurements

The Company follows FASB Accounting Standards Codification (“ASC”) 820-10, “Fair Value Measurements” (“ASC 820-10”), which defines fair value, establishes a framework for measuring fair value in U.S. GAAP, and requires certain disclosures about fair value measurements.

ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the most advantageous market for the asset or liability in an orderly transaction. Fair value measurement is based on a hierarchy of observable or unobservable inputs. The standard describes three levels of inputs that may be used to measure fair value.

Level 1 — Inputs to the valuation methodology are quoted prices available in active markets for identical securities as of the reporting date;

Level 2 — Inputs to the valuation methodology are other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk etc. as of the reporting date, and the fair value can be determined through the use of models or other valuation methodologies; and

Level 3 — Inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity of the securities and the reporting entity makes estimates and assumptions relating to the pricing of the securities including assumptions regarding risk.

If the inputs used to measure fair value fall at different levels of the fair value hierarchy, the hierarchy is based on the lowest level of input that is significant to the fair value measurement. For the acquisitions noted in Note 5, the fair value measurement methods used to estimate the fair value of the assets acquired and liabilities assumed at the acquisition dates utilized a number of significant unobservable inputs of Level 3 assumptions. These assumptions included, among other things, projections of future operating results, implied fair value of assets using an income approach by preparing a discounted cash flow analysis, and other subjective assumptions.

Interest rate swaps are valued in the market using discounted cash flows techniques. These techniques incorporate Level 1 and Level 2 inputs. The market inputs are utilized in the discounted cash flows’ calculation considering the instrument’s term, notional amount, discount rate and credit risk. Significant inputs to the derivative instrument valuation model for interest rate swaps are observable in active markets and are classified as Level 2 in the hierarchy.

Contingent liabilities related to acquisitions are measured at fair value using Level 3 unobservable inputs. The Company's estimates of fair value are based upon assumptions believed to be reasonable but that are uncertain and involve significant judgments by management. Any changes in the fair value of these contingent liabilities are included in the earnings in the condensed consolidated statements of operations and comprehensive income (loss).

The Company utilizes Monte Carlo or a series of Black-Scholes-Merton options models to estimate the fair value of the contingent consideration liabilities of business acquisitions. Significant inputs used in the fair value measurement of contingent consideration include: expected eligible revenue for the acquired businesses over the relevant measurement periods, the risk-profile of the expected eligible revenue for the acquired businesses, the uncertainty regarding the expected eligible revenue for the acquired businesses, the risk-free rate of return, the expected timing at which settlement of the contingent liabilities may occur, and the credit-adjusted discount rate associated with the risk of the Company’s future liability payments.

Cash and Cash Equivalents

Cash equivalents include highly liquid investments with maturities of three months or less from the date purchased.

Accounts Receivable

Accounts receivable include current outstanding invoices billed to customers. Invoices are typically issued with net 30 days to net 90 days terms upon delivery of the product or upon achievement of billable events for service-based contracts. Unbilled receivables relate to the Company’s rights to consideration for performance obligations satisfied but not billed at the reporting date on contracts. Unbilled receivables are billed and transferred to customer accounts receivable when the rights become unconditional. The carrying amount of accounts receivable is reduced by a valuation allowance.

Derivative Instruments

In the normal course of business, the Company is subject to risk from adverse fluctuations in interest rates. The Company has chosen to manage this risk through the use of derivative financial instruments that consist of interest rate swap contracts. Counterparties to these contracts are major financial institutions. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company does not use

derivative instruments for trading or speculative purposes. The objective of managing exposure to market risk is to limit its impact on cash flows. To qualify for hedge accounting, the interest rate swaps must effectively reduce the risk exposure that they are designed to hedge. In addition, at the inception of a qualifying cash flow hedging relationship, the underlying transaction or transactions must be, and be expected to remain, probable of occurring in accordance with the related assertions.

FASB ASC 815, “Derivatives and Hedging,” requires the Company to recognize all derivatives on the balance sheet at fair value. The Company may enter into derivative contracts such as interest rate swap contracts that effectively convert portions of the Company’s floating rate debt to a fixed rate, which serves to mitigate interest rate risk. The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The Company entered into an interest rate swap agreement in May 2022 that pays a fixed interest rate and receives a variable interest rate to modify the interest rate characteristics of term loan debt from variable to fixed in order to reduce the impact of changes in future cash flows due to market interest rate changes. The swap agreement has a notional amount of $230,000, a fixed rate of 2.8% and a termination date of August 31, 2025. During the quarter ended September 30, 2023, the Company and the counter party amended the floating rate of the swap agreement from term LIBOR to term SOFR due to LIBOR cessation. At September 30, 2024 and December 31, 2023, the interest swap had a fair value of $2,424 and $5,624, respectively. The gross fair value recognized in accumulated other comprehensive income (loss) was $2,424 and $5,624, respectively, at September 30, 2024 and December 31, 2023.

Revenue Recognition

In accordance with ASC Topic 606, “Revenue from Contracts with Customers”, the Company determines revenue recognition through the following steps:

i. Identification of the contract, or contracts, with a customer

ii. Identification of the performance obligations in the contract

iii. Determination of the transaction price

iv. Allocation of the transaction price to the performance obligations in the contract

v. Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company’s revenue consists of fees for perpetual and term licenses for its software products, post-contract customer support (referred to as maintenance), software as a service (“SaaS”), and professional services including training and other revenue. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services.

The following describes the nature of the Company’s primary types of revenues and the revenue recognition policies as they pertain to the types of transactions the Company enters into with its customers.

Software Licenses Revenues

Software license revenue consists primarily of sales of software licenses downloaded and installed by our customers on their own hardware. The license period is generally one year or less and includes an insignificant amount of customer support to assist the customer with the software. Software license performance obligations are generally recognized upfront at the point in time when the software license has been delivered.

Software as a Service (SaaS) Revenues

SaaS revenues consist of subscription fees for access to, and related support for, the Company’s cloud-based solutions. The Company typically invoices subscription fees in advance in annual installments. The invoice is initially deferred and revenue is recognized ratably over the life of the contract. The Company’s software contracts do not typically include variable consideration or options for future purchases that would not be similar to the original goods.

Software Service Revenues

Maintenance services agreements on perpetual software consist of fees for providing software updates and for providing technical support for software products for a specified term. Revenue allocated to maintenance services is recognized ratably over the contract term beginning on the delivery date of each offering. Maintenance contracts generally have a term of one year. While the transfer of control of the software training and implementation performance obligations are over time, the services are typically started and completed within a few days. Due to the quick nature of the performance obligation from start to finish and the insignificant amounts, the Company recognizes any software training or implementation revenue at the completion of the service. Any unrecognized portion of amounts paid in advance for licenses and services is recorded as deferred revenue.

Consulting Service Revenues

The Company’s primary professional services offering includes consulting services, which may be either strategic consulting services, reporting and analysis services, regulatory writing services, or any combination of the three. The Company’s professional services contracts are either time-and-materials or fixed fee. Service revenues are generally recognized over time as the services are performed. Generally, these services are delivered to customers electronically. Revenue from time-and-material contracts is recognized on an output basis as labor hours are delivered and/or direct expenses are incurred. Revenues for fixed-price services are generally recognized over time by applying input methods to estimate progress to completion. Accordingly, the number of resources being paid for and the varying lengths of time they are being paid for determine the measure of progress.

Arrangements with Multiple Performance Obligations

For contracts with multiple performance obligations, such as a software license plus software training, implementation, and/or maintenance/support, or in contracts where there are multiple software licenses, the Company determines if the products or services are distinct and allocates the consideration to each distinct performance obligation on a relative standalone selling price basis. The delivery of a particular type of software and each of the user licenses would be one performance obligation. Additionally, any training, implementation, or support and maintenance promises sold as part of the software license agreement would be considered separate performance obligations, as those promises are distinct and separately identifiable from the software licenses. The payment terms in these arrangements are less than one year such that there is no significant financing component.

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (deferred revenue, contract liabilities) on the condensed consolidated balance sheets. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., quarterly or monthly) or upon achievement of contractual milestones.

Contract assets relate to the Company’s rights to consideration for performance obligations satisfied but not billed at the reporting date on contracts (i.e., unbilled revenue, a component of accounts receivable in the condensed consolidated balance sheets). Contract assets are billed and transferred to customer accounts receivable when the rights become unconditional. The Company typically invoices customers for term licenses, subscriptions, maintenance and support fees in advance with payment due before the start of the subscription term, ranging from one to three years. The Company records the amounts collected in advance of the satisfaction of performance obligations, usually over time, as a contract liability or deferred revenue. Invoiced amounts for non-cancelable services starting in future periods are included in contract assets and deferred revenue. The portion of deferred revenue that will be recognized within 12 months is recorded as current deferred revenue, and the remaining portion is recorded as deferred revenue in the condensed consolidated balance sheets.

Contract balances at September 30, 2024 and December 31, 2023 were as follows:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Contract assets	$	16,230	$	10,405
Contract liabilities	$	60,513	$	61,748

During the nine months ended September 30, 2024, the Company recognized revenue of $55,782 related to contract liabilities at December 31, 2023.

The unsatisfied performance obligations as of September 30, 2024 were $123,447. We expect to recognize approximately $107,010 or 86.7% of this revenue over the next 12 months and the remainder thereafter.

Deferred Contract Acquisition Costs

Under ASC Topic 606, sales commissions paid to the sales force and the related employer payroll taxes, collectively deferred contract acquisition costs, are considered incremental and recoverable costs of obtaining a contract with a customer.

The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain sales incentive programs meet the requirements to be capitalized. The costs capitalized are primarily sales commissions for our sales force personnel. Capitalized costs to obtain a contract are amortized on a straight-line basis over the expected period of benefit. Amortization of capitalized costs is included in sales and marketing expenses in our condensed consolidated statements of operations and comprehensive income (loss).

Capitalized contract acquisition costs were $639 and $655 as of September 30, 2024 and December 31, 2023, respectively, and were included in prepaid expenses and other current assets in the condensed consolidated balance sheets.

Grant Revenue

The Company receives grant funding for certain specific projects from time to time. These grants specify that the funds provided are to be used exclusively to satisfy the deliverables outlined in the grant agreements. In these agreements, both involved parties receive and sacrifice approximately commensurate value, so these are accounted for as exchange transactions, and revenue is recognized according to ASC Topic 606. Grant funding is generally provided near contract inception, so a contract liability is initially recorded and revenue is recognized as the performance obligations are satisfied over time.

Sources and Timing of Revenue

The Company’s performance obligations are satisfied either over time or at a point in time.

Earnings per Share

Basic earnings per common share is computed by dividing the net earnings by the weighted-average number of shares outstanding during the reporting period, without consideration for potentially dilutive securities. Diluted shares are calculated under the treasury stock method. Diluted earnings per share is calculated by dividing the

net earnings attributable to stockholders by the weighted-average number of shares and dilutive securities outstanding during the period.

Equity-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested restricted stock beginning balance (in shares)	2,588,403
Granted (in shares)	2,252,411
Vested (in shares)	(1,111,181)
Forfeited (in shares)	(279,526)
Cancelled (in shares)	(42,098)
Non-vested restricted stock ending balance (in shares)	3,408,009
WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested restricted stock of beginning balance (in dollars per share) \| $ / shares	$ 23.77
Granted (in dollars per share) \| $ / shares	17.84
Vested (in dollars per share) \| $ / shares	23.71
Forfeited (in dollars per share) \| $ / shares	20.85
Cancelled (in dollars per share) \| $ / shares	24.21
Non-vested restricted stock of ending balance (in dollars per share) \| $ / shares	$ 20.10
Common shares issued for share-based compensation awards and shares withheld for tax (in shares)	408,378

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Net income (loss) available to common shareholders	$ (1,371)	$ (48,965)	$ (18,628)	$ (42,901)
Basic weighted-average common shares outstanding (in shares)	160,642,052	159,165,206	160,225,375	158,769,638
Basic earnings per common share (in dollars per share)	$ (0.01)	$ (0.31)	$ (0.12)	$ (0.27)
Diluted earnings per share
Net income (loss) available to common shares	$ (1,371)	$ (48,965)	$ (18,628)	$ (42,901)
Basic weighted-average common shares outstanding (in shares)	160,642,052	159,165,206	160,225,375	158,769,638
Dilutive potential common shares (in shares)	0	0	0	0
Diluted weighted average common shares outstanding (in shares)	160,642,052	159,165,206	160,225,375	158,769,638
Diluted earnings per common share (in dollars per share)	$ (0.01)	$ (0.31)	$ (0.12)	$ (0.27)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

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

+ References

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	COMMON STOCK	ADDITIONAL PAID-IN CAPITAL	ACCUMULATED DEFICIT	ACCUMULATED OTHER COMPREHENSIVE LOSS	TREASURY STOCK
Common stock, beginning balance (in shares) at Dec. 31, 2022		159,676,150
Beginning balance at Dec. 31, 2022	$ 1,079,661	$ 1,596	$ 1,150,168	$ (60,873)	$ (8,230)	$ (3,000)
Treasury shares beginning balance (in shares) at Dec. 31, 2022						(150,207)
Increase (Decrease) in Stockholders' Equity
Equity-based compensation expense, net of forfeiture	20,798		20,798
Common shares issued for share-based compensation awards and shares withheld for tax (in shares)		805,607				(280,946)
Common shares issued for share-based compensation awards and shares withheld for tax	(6,323)	$ 8	(8)			$ (6,323)
Restricted stock forfeiture (in shares)		(201,838)
Restricted stock forfeiture	0	$ (2)	2
Change in fair value from interest rate swap, net of tax	758				758
Net income (loss)	(42,901)			(42,901)
Foreign currency translation adjustment, net of tax	(242)				(242)
Common stock, ending balance (in shares) at Sep. 30, 2023		160,279,919
Ending balance at Sep. 30, 2023	1,051,751	$ 1,602	1,170,960	(103,774)	(7,714)	$ (9,323)
Treasury shares ending balance (in shares) at Sep. 30, 2023						(431,153)
Common stock, beginning balance (in shares) at Jun. 30, 2023		160,171,493
Beginning balance at Jun. 30, 2023	1,097,174	$ 1,601	1,162,317	(54,809)	(3,173)	$ (8,762)
Treasury shares beginning balance (in shares) at Jun. 30, 2023						(394,209)
Increase (Decrease) in Stockholders' Equity
Equity-based compensation expense, net of forfeiture	8,645		8,645
Common shares issued for share-based compensation awards and shares withheld for tax (in shares)		119,101				(36,944)
Common shares issued for share-based compensation awards and shares withheld for tax	(562)	$ 1	(2)			$ (561)
Common shares issued for employee share-based compensation	0
Restricted stock forfeiture (in shares)		(10,675)
Change in fair value from interest rate swap, net of tax	117				117
Net income (loss)	(48,965)			(48,965)
Foreign currency translation adjustment, net of tax	(4,658)				(4,658)
Common stock, ending balance (in shares) at Sep. 30, 2023		160,279,919
Ending balance at Sep. 30, 2023	$ 1,051,751	$ 1,602	1,170,960	(103,774)	(7,714)	$ (9,323)
Treasury shares ending balance (in shares) at Sep. 30, 2023						(431,153)
Common stock, beginning balance (in shares) at Dec. 31, 2023	159,848,286	160,284,901
Beginning balance at Dec. 31, 2023	$ 1,046,840	$ 1,603	1,178,461	(116,230)	(7,593)	$ (9,401)
Treasury shares beginning balance (in shares) at Dec. 31, 2023	(436,615)					(436,615)
Increase (Decrease) in Stockholders' Equity
Equity-based compensation expense, net of forfeiture	$ 27,043		27,043
Common stock withheld for tax liabilities (in shares)						(455,163)
Common stock withheld for tax liabilities	(8,137)					$ (8,137)
Common shares issued for employee share-based compensation (in shares)		1,297,519
Common shares issued for employee share-based compensation		$ 13	(13)
Restricted stock forfeiture (in shares)		(5,123)
Common shares issued related with Vyasa (in shares)		214,692
Common shares issued for contingent consideration	3,707	$ 2	3,705
Change in fair value from interest rate swap, net of tax	(2,412)				(2,412)
Net income (loss)	(18,628)			(18,628)
Foreign currency translation adjustment, net of tax	$ 4,992				4,992
Common stock, ending balance (in shares) at Sep. 30, 2024	160,900,211	161,791,989
Ending balance at Sep. 30, 2024	$ 1,053,405	$ 1,618	1,209,196	(134,858)	(5,013)	$ (17,538)
Treasury shares ending balance (in shares) at Sep. 30, 2024	(891,778)					(891,778)
Common stock, beginning balance (in shares) at Jun. 30, 2024		161,764,197
Beginning balance at Jun. 30, 2024	$ 1,043,401	$ 1,618	1,201,009	(133,487)	(8,328)	$ (17,411)
Treasury shares beginning balance (in shares) at Jun. 30, 2024						(882,883)
Increase (Decrease) in Stockholders' Equity
Equity-based compensation expense, net of forfeiture	8,187		8,187
Common stock withheld for tax liabilities (in shares)						(8,895)
Common stock withheld for tax liabilities	(127)					$ (127)
Common shares issued for employee share-based compensation (in shares)		27,792
Change in fair value from interest rate swap, net of tax	(2,385)				(2,385)
Net income (loss)	(1,371)			(1,371)
Foreign currency translation adjustment, net of tax	$ 5,700				5,700
Common stock, ending balance (in shares) at Sep. 30, 2024	160,900,211	161,791,989
Ending balance at Sep. 30, 2024	$ 1,053,405	$ 1,618	$ 1,209,196	$ (134,858)	$ (5,013)	$ (17,538)
Treasury shares ending balance (in shares) at Sep. 30, 2024	(891,778)					(891,778)

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On October 1, 2024, the Company completed the acquisition of Chemaxon, a leading provider of scientific informatics software products. The total cash consideration paid for this acquisition is $90,000. The Company will finalize the initial accounting for the acquisition of Chemaxon, including the allocation of the purchase consideration, in the fourth quarter of 2024.

Equity-Based Compensation - Performance Stock Units (Details) - Performance Shares	6 Months Ended	9 Months Ended
	Jun. 30, 2024 $ / shares shares	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested restricted stock beginning balance (in shares)	849,467	849,467
Granted (in shares)		338,445
Vested (in shares)		(30,728)
Forfeited (in shares)		(20,042)
Cancelled (in shares)		(394,050)
Non-vested restricted stock ending balance (in shares)		743,092
WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested restricted stock of beginning balance (in dollars per share) \| $ / shares	$ 24.84	$ 24.84
Granted (in dollars per share) \| $ / shares		18.98
Vested (in dollars per share) \| $ / shares		24.83
Forfeited (in dollars per share) \| $ / shares		21.46
Cancelled (in dollars per share) \| $ / shares		27.09
Non-vested restricted stock of ending balance (in dollars per share) \| $ / shares		$ 21.07
Assumed, granted, and cancelled (in shares)	6,651
Common stock withheld for tax liabilities (in shares)		46,785

Summary of Significant Accounting Policies - Level 3 Contingent Liability Roll Forward (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance at December 31, 2023	$ 54,457
Additions	0
Payments	(18,863)
Fair value remeasurement	8,102
Ending balance at September 30, 2024	$ 43,696

Segment Data

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Data

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources and in assessing performance.

The Company has determined that its chief executive officer is its CODM. The Company manages its operations as a single segment for the purposes of assessing and making operating decisions. The Company’s CODM allocates resources and assesses performance based upon financial information at the consolidated level. Since the Company operates in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements.

The following table summarizes revenue by geographic area for the three and nine months ended September 30, 2024 and 2023:


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2024		2023		2024		2023

Revenue(1):
Americas	$	69,906	$	64,634	$	208,690	$	199,824
EMEA	18,117		14,721		56,205		46,746
Asia Pacific	6,797		6,221		19,892		19,757
Total	$	94,820	$	85,576	$	284,787	$	266,327

___________________________________

(1) Revenue is attributable to the countries based on the location of the customer.

- 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.

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+ Details

Business Combinations (Details) $ in Thousands				9 Months Ended		141 Months Ended
Business Combinations (Details) $ in Thousands	Dec. 12, 2023 USD ($)	Oct. 10, 2023 USD ($)	Jun. 20, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) acquisition	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Number of businesses acquired \| acquisition						20
Contingent liabilities				$ 43,696		$ 43,696	$ 54,457
Change in fair value of contingent considerations				8,092	$ 11,316
Goodwill				718,483		$ 718,483	$ 716,333
Payments for business acquisition related contingent consideration				(15,156)	$ 0
Software or Technology Related Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired \| acquisition						13
Drug Interaction Solutions University of Washington (DIDB)
Business Acquisition [Line Items]
Business combination, consideration transferred			$ 8,340
Contingent consideration earn out period			2 years
Contingent consideration arrangements, range of outcomes, high			$ 2,000
Contingent liabilities				136		$ 136
Change in fair value of contingent considerations				4
Goodwill			2,289
Drug Interaction Solutions University of Washington (DIDB) \| Revenue Target
Business Acquisition [Line Items]
Contingent liabilities			790
Drug Interaction Solutions University of Washington (DIDB) \| Trademarks
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			330
Drug Interaction Solutions University of Washington (DIDB) \| Developed Technology Rights
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			5,600
Drug Interaction Solutions University of Washington (DIDB) \| Customer Relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			$ 360
Formedix
Business Acquisition [Line Items]
Business combination, consideration transferred		$ 41,389
Contingent consideration earn out period		2 years
Contingent consideration arrangements, range of outcomes, high		$ 9,000
Contingent liabilities		5,161		0		$ 0
Change in fair value of contingent considerations				(1,919)
Goodwill		25,062
Payments for business acquisition related contingent consideration				(1,777)
Formedix \| Revenue Target
Business Acquisition [Line Items]
Contingent liabilities		4,380
Formedix \| Developed Technology Rights
Business Acquisition [Line Items]
Finite-lived intangible assets acquired		11,700
Formedix \| Customer Relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired		$ 3,100
Applied Biomath
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 36,594
Contingent consideration earn out period	2 years
Contingent consideration arrangements, range of outcomes, high	$ 17,550
Change in fair value of contingent considerations				(650)
Goodwill	15,872
Payments for business acquisition related contingent consideration				$ (4,730)
Applied Biomath \| Revenue Target
Business Acquisition [Line Items]
Contingent liabilities	5,357
Applied Biomath \| Developed Technology Rights
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	4,600
Applied Biomath \| Customer Relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	13,700
Applied Biomath \| Noncompete Agreements
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 800

- Details

Name:	us-gaap_BusinessAcquisitionAxis=cert_AppliedBiomathMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

The Company leases certain office facilities and equipment under non-cancelable operating leases with remaining terms ranging from less than one to nine years.

Operating lease ROU assets are included in other assets. With respect to operating lease liabilities, current operating lease liabilities are included in current liabilities and non-current operating lease liabilities are included in long-term liabilities in the condensed consolidated balance sheets. At September 30, 2024, the weighted average remaining lease terms were 5.76 years for operating leases, and the weighted average discount rate was 5.54% for operating leases. For additional information on the Company's leases, see Note 14. “Leases” to the consolidated financial statements included in the Company’s 2023 Annual Report.

The following table summarizes the lease-related assets and liabilities recorded in the condensed consolidated balance sheets at September 30, 2024 and December 31, 2023:


Lease Position	Balance Sheet Classification	SEPTEMBER 30, 2024		DECEMBER 31, 2023
		(In thousands)
Assets
Operating lease assets	Operating lease right-of-use assets	$	12,070	$	9,604

Total lease assets		$	12,070	$	9,604

Liabilities
Current
Operating	Other current liabilities	$	4,581	$	4,375


Noncurrent
Operating	Operating lease liabilities, net of current portion	10,420		6,955
Total lease liabilities		$	15,001	$	11,330

The following table summarizes by year the maturities of our minimum lease payments as of September 30, 2024:


	OPERATING LEASES
	(In thousands)
Remainder of 2024	$	1,489
2025	4,011
2026	2,837
2027	1,891
2028	1,034
Thereafter	6,087
Total future lease payments	17,349
Less: imputed interest	(2,348)
Total	$	15,001

Equity-Based Compensation - Non-vested Restricted Stock (Details) - Restricted Stock	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested restricted stock beginning balance (in shares)	538,661
Granted (in shares)	16,842
Vested (in shares)	(292,242)
Forfeited (in shares)	(5,123)
Cancelled (in shares)	(16,842)
Non-vested restricted stock ending balance (in shares)	241,296
WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested restricted stock of beginning balance (in dollars per share) \| $ / shares	$ 23.18
Granted (in dollars per share) \| $ / shares	17.35
Vested (in dollars per share) \| $ / shares	22.67
Forfeited (in dollars per share) \| $ / shares	23.00
Cancelled (in dollars per share) \| $ / shares	23.00
Non-vested restricted stock of ending balance (in dollars per share) \| $ / shares	$ 23.41
Assumed, granted, and cancelled (in shares)	16,842

Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary Of The Restricted Stock


	SHARES	WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested restricted stock as of December 31, 2023	538,661	$	23.18
Granted*	16,842	17.35
Vested*	(292,242)	22.67
Forfeited	(5,123)	23.00
Cancelled*	(16,842)	23.00
Non-vested restricted stock as of September 30, 2024	241,296	$	23.41

___________________________________

* The Company did not legally authorize or issue any restricted stock during the nine month period ended September 30, 2024. During the nine months ended 2024, the Company modified an award for a recipient, resulting in 16,842 shares assumed to be granted, vested, and cancelled.

Summary Of The Company's RSU activity

A summary of the Company’s RSU activity is as follows:


	UNITS	WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested RSUs as of December 31, 2023	2,588,403	$	23.77
Granted*	2,252,411	17.84
Vested**	(1,111,181)	23.71
Forfeited	(279,526)	20.85
Cancelled*	(42,098)	24.21
Non-vested RSUs as of September 30, 2024	3,408,009	$	20.10

___________________________________

*The majority of shares granted during the first nine months of 2024 were issued under the 2020 Incentive Plan. During the first nine months of 2024, the Company modified awards for recipients, resulting in 42,098 shares assumed to be granted, vested, and cancelled for accounting purposes.

**The number of the RSUs vested included 408,378 shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements.

Schedule Of Nonvested Performance-Based Units Activity

A summary of the Company’s PSU activity for the period ended September 30, 2024 is as follows:


	UNITS	WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested PSUs as of December 31, 2023	849,467	$	24.84
Granted*	338,445	18.98
Vested**	(30,728)	24.83
Forfeited	(20,042)	21.46
Cancelled*	(394,050)	27.09
Non-vested PSUs as of September 30, 2024	743,092	$	21.07

___________________________________

* During the first half of 2024, the Company modified an award for a recipient, resulting in 6,651 shares assumed to be granted and cancelled for accounting purpose.

** The number of the PSUs vested included 46,785 shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements.

Schedule Of Compensation Expense

The following table summarizes the components of total equity-based compensation expense included in the condensed consolidated statements of operations and comprehensive income (loss) for each period presented:


	THREE MONTHS ENDED SEPTEMBER 30,			NINE MONTHS ENDED SEPTEMBER 30,
		2024		2023		2024		2023
	(In thousands)
Cost of revenues		$	3,235	$	3,198	$	10,095	$	8,328
Sales and marketing		865		343		2,546		1,272
Research and development		1,302		1,919		4,306		4,789
General and administrative		2,785		3,185		10,096		6,409
Total		$	8,187	$	8,645	$	27,043	$	20,798

Long-Term Debt and Revolving Line of Credit (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Long-term debt

Long-term debt consists of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Term loans	$	299,250	$	294,450
Revolving line of credit	—		—
Less: debt issuance costs	(3,197)		(3,213)
Total	296,053		291,237
Current portion of long-term debt	(3,000)		(3,020)
Long-term debt, net of current portion and debt issuance costs	$	293,053	$	288,217

Schedule of Maturity of Long-Term Debt

The principal amount of long-term debt outstanding as of September 30, 2024 matures in the following years:


	Remainder of 2024		2025		2026		2027		2028		Thereafter		TOTAL
	(In thousands)
Maturities	$	750	$	3,000	$	3,000	$	3,000	$	3,000	$	286,500	$	299,250

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

There have been no changes other than what is discussed herein to the Company’s significant accounting policies as compared to the significant accounting policies described in Note 2. “Summary of Significant Accounting Policies” to the Company’s audited consolidated financial statements included in the Company’s 2023 Annual Report. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes as of and for the year ended December 31, 2023.

(a) Basis of Presentation and Use of Estimates

(b) Unaudited Interim Financial Statements

(d) Principles of Consolidation

(e) Fair Value Measurements

Level 1 — Inputs to the valuation methodology are quoted prices available in active markets for identical securities as of the reporting date;

The following table sets forth the assets and liabilities that were measured at fair value on a recurring and non-recurring basis by their levels in the fair value hierarchy at September 30, 2024:



	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
	(In thousands)
Assets
Money market funds	$	78,253	$	—	$	—	$	78,253
Interest rate swap assets	—		2,424		—		2,424
Total assets	$	78,253	$	2,424	$	—	$	80,677

Liabilities
Contingent liabilities	$	—	$	—	$	43,696	$	43,696
Total liabilities	$	—	$	—	$	43,696	$	43,696

The following table sets forth the assets and liabilities that were measured at fair value on a recurring and non-recurring basis by their levels in the fair value hierarchy at December 31, 2023:


	LEVEL 1		LEVEL2		LEVEL 3		TOTAL
	(In thousands)
Assets
Money market funds	$	147,478	$	—	$	—	$	147,478
Interest rate swap assets	—		5,624		—		5,624
Total assets	$	147,478	$	5,624	$	—	$	153,102

Liabilities
Contingent liabilities	$	—	$	—	$	54,457	$	54,457
Total liabilities	$	—	$	—	$	54,457	$	54,457

For the period ended September 30, 2024, there were no transfers between the levels within the fair value hierarchy. The Company’s Level 3 liabilities are acquisition related contingent consideration liabilities.

The following table summarizes the Level 3 activity of the changes in the contingent consideration liability.



	SEPTEMBER 30, 2024
	(In thousands)
Beginning balance at December 31, 2023	$	54,457
Additions	—
Payments	(18,863)
Fair value remeasurement	8,102
Ending balance at September 30, 2024	$	43,696

For more information regarding fair value measurements and the fair value hierarchy, see Note 2. “Summary of Significant Accounting Policies” in the notes to the consolidated financial statements in the Company’s 2023 Annual Report.

(f) Cash and Cash Equivalents

Cash equivalents include highly liquid investments with maturities of three months or less from the date purchased. The cash and cash equivalents was $233,023 and $234,951 at September 30, 2024 and December 31, 2023, respectively.

(g) Accounts Receivable

The Company estimates the expected credit losses for accounts receivable using historical loss data adjusted for current economic conditions, including reasonable and supportable forecasts to estimate the relative size of credit losses to be expected. The Company generally writes off a receivable or records a specific allowance for credit losses if it determines that the receivable is not collectible. Allowances for credit losses of $1,556 and $1,312 were provided in the accompanying condensed consolidated financial statements as of September 30, 2024 and December 31, 2023, respectively.

Accounts receivable consists of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Trade receivables	$	80,978	$	75,410
Unbilled receivables	16,230		10,405
Other receivables	304		354
Allowances for credit losses	(1,556)		(1,312)
Accounts receivable, net	$	95,956	$	84,857

The following table presents the information regarding the allowance for credit losses:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Beginning balance	$	1,312	$	1,250
Provision for credit losses	393		684
Charge-offs, net of recoveries	(149)		(622)
Ending balance	$	1,556	$	1,312

(h) Derivative Instruments

The Company uses derivatives to manage certain interest exposures and designated all the derivatives as cash flow hedges. The Company records derivatives at fair value on its condensed consolidated balance sheets. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss). Those amounts are reclassified into interest expenses in the same period during which the hedged transactions impact earnings. The amount of derivative gains reclassified from accumulated other comprehensive income on derivative instruments recognized in the Company’s condensed consolidated statements of operations and comprehensive income (loss) was $1,529, $1,489 , $4,580, and $3,751 for the three and nine months ended September 30, 2024 and 2023, respectively.

The notional amounts, fair values, and classification of derivative instruments in the condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023 were as follows:


Interest rate swap derivative designated as cash flow hedging instrument:	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Notional amounts	$	230,000	$	230,000
Prepaid expenses and other current assets	$	2,424	$	4,473
Other long-term assets	$	—	$	1,151

The net amount of deferred gains related to derivative instruments designated as cash flow hedges that is expected to be reclassified from accumulated other comprehensive gains into earnings over the next twelve months is $2,424.

(i) Revenue Recognition

In accordance with ASC Topic 606, “Revenue from Contracts with Customers”, the Company determines revenue recognition through the following steps:

i. Identification of the contract, or contracts, with a customer

ii. Identification of the performance obligations in the contract

iii. Determination of the transaction price

iv. Allocation of the transaction price to the performance obligations in the contract

v. Recognition of revenue when, or as, the Company satisfies a performance obligation

Software Licenses Revenues

Software as a Service (SaaS) Revenues

Software Service Revenues

Consulting Service Revenues

Arrangements with Multiple Performance Obligations

Contract Balances

Contract balances at September 30, 2024 and December 31, 2023 were as follows:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Contract assets	$	16,230	$	10,405
Contract liabilities	$	60,513	$	61,748

During the nine months ended September 30, 2024, the Company recognized revenue of $55,782 related to contract liabilities at December 31, 2023.

Deferred Contract Acquisition Costs

Grant Revenue

Sources and Timing of Revenue

The Company’s performance obligations are satisfied either over time or at a point in time. The following table presents the Company’s revenue by timing of revenue recognition to understand the risks of timing of transfer of control and cash flows:


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2024		2023		2024		2023
	(In thousands)
Software licenses transferred at a point in time	$	10,202	$	9,916	$	39,031	$	38,967
Software licenses transferred over time	25,710		21,414		74,395		59,092
Service revenues earned over time	58,908		54,246		171,361		168,268
Total	$	94,820	$	85,576	$	284,787	$	266,327

(j) Earnings per Share

net earnings attributable to stockholders by the weighted-average number of shares and dilutive securities outstanding during the period.

Long-Term Debt and Revolving Line of Credit - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 26, 2024	Dec. 31, 2023	Aug. 31, 2017
Debt Instrument
Term loans	$ 299,250		$ 299,250
Accrued interest payable	130		130			$ 2,351
Line of Credit \| Secured Debt
Debt Instrument
Term loans	$ 299,250		$ 299,250		$ 100,000	294,450	$ 300,000
Effective interest rate	8.96%	8.67%	8.96%	8.67%
Interest incurred	$ 6,366	$ 6,844	$ 19,900	$ 19,283
Interest payable	65		65			2,400
Prepayment on the loan			750
Line of Credit \| Revolving Credit Facility
Debt Instrument
Term loans	100,000		100,000			100,000
Interest incurred	81	$ 65	207	$ 193
Accrued interest payable	$ 1		$ 1			$ 2
Line of Credit \| Secured Overnight Financing Rate SOFR \| Variable Rate Component One
Debt Instrument
Floor rate	0.00%		0.00%
Line of Credit \| Secured Overnight Financing Rate SOFR \| Variable Rate Component One \| Secured Debt
Debt Instrument
Basis spread on variable rate			3.00%
Line of Credit \| Secured Overnight Financing Rate SOFR \| Variable Rate Component Three
Debt Instrument
Floor rate	1.00%		1.00%
Line of Credit \| Secured Overnight Financing Rate SOFR \| Maximum \| Variable Rate Component One \| Revolving Credit Facility
Debt Instrument
Basis spread on variable rate			3.50%
Line of Credit \| Secured Overnight Financing Rate SOFR \| Minimum \| Variable Rate Component One \| Revolving Credit Facility
Debt Instrument
Basis spread on variable rate			2.75%
Line of Credit \| Alternate Base Rate \| Variable Rate Component Two
Debt Instrument
Floor rate	1.00%		1.00%
Line of Credit \| Alternate Base Rate \| Variable Rate Component Two \| Secured Debt
Debt Instrument
Basis spread on variable rate			2.00%
Line of Credit \| Alternate Base Rate \| Maximum \| Variable Rate Component Two \| Revolving Credit Facility
Debt Instrument
Basis spread on variable rate			2.50%
Line of Credit \| Alternate Base Rate \| Minimum \| Variable Rate Component Two \| Revolving Credit Facility
Debt Instrument
Basis spread on variable rate			1.75%
Line of Credit \| Fed Funds Effective Rate \| Variable Rate Component Two
Debt Instrument
Basis spread on variable rate			0.50%

Subsequent Event (Details) $ in Thousands	Oct. 01, 2024 USD ($)
Subsequent Event \| Chemaxon
Subsequent Event [Line Items]
Payments to acquire businesses	$ 90

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Cash and cash equivalents	$ 233,023	$ 234,951

Prepaid Expenses and Other Current Assets and Other Long-Term Assets - Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid expenses	$ 7,345	$ 6,363
Income tax receivable	3,233	3,395
Research and development tax credit receivable	7,112	5,004
Current portion of interest rate swap asset	2,424	4,473
Other current assets	1,516	1,158
Prepaid expenses and other current assets	$ 21,630	$ 20,393

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Schedule Of Operating And Financing Lease Right Of Use Assets And Lease Liabilities

The following table summarizes the lease-related assets and liabilities recorded in the condensed consolidated balance sheets at September 30, 2024 and December 31, 2023:


Lease Position	Balance Sheet Classification	SEPTEMBER 30, 2024		DECEMBER 31, 2023
		(In thousands)
Assets
Operating lease assets	Operating lease right-of-use assets	$	12,070	$	9,604

Total lease assets		$	12,070	$	9,604

Liabilities
Current
Operating	Other current liabilities	$	4,581	$	4,375


Noncurrent
Operating	Operating lease liabilities, net of current portion	10,420		6,955
Total lease liabilities		$	15,001	$	11,330

Schedule Of Minimum Lease Payments Of Operating Leases

The following table summarizes by year the maturities of our minimum lease payments as of September 30, 2024:


	OPERATING LEASES
	(In thousands)
Remainder of 2024	$	1,489
2025	4,011
2026	2,837
2027	1,891
2028	1,034
Thereafter	6,087
Total future lease payments	17,349
Less: imputed interest	(2,348)
Total	$	15,001

Schedule Of Minimum Lease Payments Of Finance Leases

The following table summarizes by year the maturities of our minimum lease payments as of September 30, 2024:


	OPERATING LEASES
	(In thousands)
Remainder of 2024	$	1,489
2025	4,011
2026	2,837
2027	1,891
2028	1,034
Thereafter	6,087
Total future lease payments	17,349
Less: imputed interest	(2,348)
Total	$	15,001

Prepaid Expenses and Other Current Assets and Other Long-Term Assets

9 Months Ended

Sep. 30, 2024

Prepaid Expense and Other Assets, Current [Abstract]

Prepaid Expenses And Other Current Assets and Other Long-Term Assets

Prepaid Expenses and Other Current Assets and Other Long-Term Assets

Prepaid expense and other current assets at September 30, 2024 and December 31, 2023 consist of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Prepaid expenses	$	7,345	$	6,363
Income tax receivable	3,233		3,395
Research and development tax credit receivable	7,112		5,004
Current portion of interest rate swap asset	2,424		4,473
Other current assets	1,516		1,158
Prepaid expenses and other current assets	$	21,630	$	20,393

Other long-term assets at September 30, 2024 and December 31, 2023 consisted of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Long-term deposits	$	1,456	$	1,451
Interest rate swap asset - long-term	—		1,151
Deferred financing cost	596		451
Total other long-term assets	$	2,052	$	3,053

Segment Data (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Area

The following table summarizes revenue by geographic area for the three and nine months ended September 30, 2024 and 2023:


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2024		2023		2024		2023

Revenue(1):
Americas	$	69,906	$	64,634	$	208,690	$	199,824
EMEA	18,117		14,721		56,205		46,746
Asia Pacific	6,797		6,221		19,892		19,757
Total	$	94,820	$	85,576	$	284,787	$	266,327

___________________________________

(1) Revenue is attributable to the countries based on the location of the customer.

Leases - Lease-related Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Operating lease right-of-use assets	$ 12,070	$ 9,604
Liabilities
Other current liabilities	4,581	4,375
Operating lease liabilities, net of current portion	10,420	6,955
Total	$ 15,001	$ 11,330

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	17.00%	4.00%	9.00%	(0.30%)

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income (loss) available to common shareholders	$ (1,371)	$ (48,965)	$ (18,628)	$ (42,901)

- Definition

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

+ References

+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 1,556	$ 1,312
Intangible assets, accumulated amortization	$ 323,609	$ 273,522
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, shares authorized (in shares)	50,000,000	50,000,000
Preferred shares, shares issued (in shares)	0	0
Preferred shares, shares outstanding (in shares)	0	0
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	600,000,000	600,000,000
Common shares, shares issued (in shares)	161,791,989	160,284,901
Common shares, shares, outstanding (in shares)	160,900,211	159,848,286
Treasury stock at cost (in shares)	891,778	436,615

Accrued Expenses and Other Liabilities - Other Long Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Uncertain tax position liability	$ 1,308	$ 2,381
Contingent consideration	23,607	36,828
Total other long-term liabilities	$ 24,915	$ 39,209

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenues	$ 94,820	$ 85,576	$ 284,787	$ 266,327
Cost of revenues	37,189	35,876	116,253	106,956
Operating expenses:
Sales and marketing	11,347	7,238	34,247	23,351
Research and development	8,271	8,980	29,333	26,155
General and administrative	22,030	27,760	73,080	61,777
Intangible asset amortization	12,950	11,155	38,286	32,272
Depreciation and amortization expense	439	367	1,322	1,139
Goodwill impairment expense	0	46,984	0	46,984
Total operating expenses	55,037	102,484	176,268	191,678
Income (loss) from operations	2,594	(52,784)	(7,734)	(32,307)
Other income (expenses):
Interest expense	(5,187)	(5,903)	(16,516)	(17,046)
Net other income	932	5,078	4,886	6,594
Total other expenses	(4,255)	(825)	(11,630)	(10,452)
Loss before income taxes	(1,661)	(53,609)	(19,364)	(42,759)
Provision (benefit) for income taxes	(290)	(4,644)	(736)	142
Net loss	(1,371)	(48,965)	(18,628)	(42,901)
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax of $(390), $254, $(346), and $(33) respectively	5,700	(4,658)	4,992	(242)
Change in fair value from interest rate swap, net of tax of $(795), $37, $(788), and $211 respectively	(2,385)	117	(2,412)	758
Total other comprehensive income (loss)	3,315	(4,541)	2,580	516
Comprehensive income (loss)	$ 1,944	$ (53,506)	$ (16,048)	$ (42,385)
Net income (loss) per share attributable to common stockholders:
Basic (in dollar per share)	$ (0.01)	$ (0.31)	$ (0.12)	$ (0.27)
Diluted (in dollar per share)	$ (0.01)	$ (0.31)	$ (0.12)	$ (0.27)
Weighted average common shares outstanding:
Basic (in shares)	160,642,052	159,165,206	160,225,375	158,769,638
Diluted (in shares)	160,642,052	159,165,206	160,225,375	158,769,638

Leases - Narrative (Details)	Sep. 30, 2024
Leases
Operating leases - Weighted-average remaining lease term (years)	5 years 9 months 3 days
Operating leases - Weighted-average discount rate	5.54%
Minimum
Leases
Remaining operating and capital lease term	1 year
Maximum
Leases
Remaining operating and capital lease term	9 years

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings per Share


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2024		2023		2024		2023

Net income (loss) available to common shareholders	$	(1,371)	$	(48,965)	$	(18,628)	$	(42,901)
Basic weighted-average common shares outstanding	160,642,052		159,165,206		160,225,375		158,769,638
Basic earnings per common share	$	(0.01)	$	(0.31)	$	(0.12)	$	(0.27)

Diluted earnings per share
Net income (loss) available to common shares	$	(1,371)	$	(48,965)	$	(18,628)	$	(42,901)
Basic weighted-average common shares outstanding	160,642,052		159,165,206		160,225,375		158,769,638
Dilutive potential common shares	—		—		—		—
Diluted weighted-average common shares outstanding	160,642,052		159,165,206		160,225,375		158,769,638
Diluted earnings per common share	$	(0.01)	$	(0.31)	$	(0.12)	$	(0.27)

__________________________________

•For the period ended September 30, 2024 and 2023, the Company excluded potentially dilutive securities from the calculation of diluted earnings per share that could potentially dilute earnings per share in the future because of the anti-dilutive effect of the reported net loss.

Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Trade receivables	$ 80,978	$ 75,410
Unbilled receivables	16,230	10,405
Other receivables	304	354
Allowances for credit losses	(1,556)	(1,312)	$ (1,250)
Accounts receivable, net	$ 95,956	$ 84,857

Accrued Expenses and Other Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accrued Liabilities, Current [Abstract]
Accrued compensation	$ 26,470	$ 28,624
Legal and professional accruals	2,627	3,913
Interest payable	130	2,351
Income taxes payable	1,700	1,010
Short-term contingent consideration liabilities	20,870	18,410
Other	1,497	2,471
Total accrued expenses	$ 53,294	$ 56,779

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-39799
Entity Registrant Name	Certara, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2180925
Entity Address, Address Line One	4 Radnor Corporate Center
Entity Address, Address Line Two	Suite 350
Entity Address, City or Town	Radnor
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	415
Local Phone Number	237-8272
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	CERT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		160,974,813
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001827090
Amendment Flag	false
Document Fiscal Period Focus	Q3

Earnings per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings per Share

Basic earnings per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average common shares outstanding for the period. Diluted earnings per share is computed by dividing the net income (loss) attributable to stockholders by the weighted-average number of shares and dilutive potential common shares during the period.


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2024		2023		2024		2023

Net income (loss) available to common shareholders	$	(1,371)	$	(48,965)	$	(18,628)	$	(42,901)
Basic weighted-average common shares outstanding	160,642,052		159,165,206		160,225,375		158,769,638
Basic earnings per common share	$	(0.01)	$	(0.31)	$	(0.12)	$	(0.27)

Diluted earnings per share
Net income (loss) available to common shares	$	(1,371)	$	(48,965)	$	(18,628)	$	(42,901)
Basic weighted-average common shares outstanding	160,642,052		159,165,206		160,225,375		158,769,638
Dilutive potential common shares	—		—		—		—
Diluted weighted-average common shares outstanding	160,642,052		159,165,206		160,225,375		158,769,638
Diluted earnings per common share	$	(0.01)	$	(0.31)	$	(0.12)	$	(0.27)

__________________________________

Equity-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Equity-Based Compensation

The Company’s equity-based compensation programs are intended to attract, retain and provide incentives for employees, officers, and directors. The Company has the following stock-based compensation plans and programs.

Restricted Stock

The majority of the Company’s restricted stock awarded to its employees was originally issued on December 10, 2020 in exchange for the Class B Profits Interest Unit (the “Class B Units”) of EQT Avatar Parent LP, which was the former parent of the Company.

Share-based compensation for the restricted stock exchanged for the time-based Class B Units is recognized on a straight-line basis over the requisite service period of the award, which is generally five years. Share-based compensation for the restricted stock exchanged for the performance-based Class B Units is recognized using the accelerated attribution approach.

In 2021, the Company granted 87,127 replacement shares of restricted stock in connection with the acquisition of Pinnacle 21, LLC under which equity-based awards are outstanding. The fair value of the restricted stock awarded was initially based on the fair value of our common stock on the date of grant, then adjusted for time restrictions due to unregistered shares and lack of marketability. The non-vested restricted stock at September 30, 2024 issued in 2021 has a three-year vesting period.


	SHARES	WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested restricted stock as of December 31, 2023	538,661	$	23.18
Granted*	16,842	17.35
Vested*	(292,242)	22.67
Forfeited	(5,123)	23.00
Cancelled*	(16,842)	23.00
Non-vested restricted stock as of September 30, 2024	241,296	$	23.41

___________________________________

Equity-based compensation expenses related to the restricted stock exchanged for performance-based Class B Units were $173, $333, $579, and $497 for the three and nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024, the total unrecognized equity-based compensation expense related to outstanding restricted stock recognized using the accelerated attribution approach was $249, which is expected to be recognized over a weighted-average period of 10.2 months.

Equity-based compensation expenses related to the restricted stock exchanged for time-based Class B Units were $196 and $252, $794, and $1,062 for the three and nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024, the total unrecognized equity-based compensation expense related to outstanding restricted stock recognized using the straight-line attribution approach was $455, which is expected to be recognized over a weighted-average period of 11 months.

Equity-based employee compensation expense related to the time-based restricted stock for the Pinnacle 21, LLC acquisition was $106, $292, $318, and $877 for the three and nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024, there is no unrecognized equity-based compensation expenses related to outstanding restricted stock recognized using the straight-line attribution approach.

2020 Incentive Plan

In order to align the Company’s equity compensation program with public company practices, the Company’s Board of Directors adopted and stockholders approved the 2020 Incentive Plan. The 2020 Incentive Plan allows for grants of non-qualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), and performance stock units (“PSUs”) to employees, directors, officers, and consultants or advisors of the Company. The 2020 Incentive Plan allows for 20,000,000 shares (the “plan share reserve”) of common stock to be issued. No more than the number of shares of common stock equal to the plan share reserve may be issued in aggregate pursuant to the exercise of incentive stock options. The maximum number of shares of common stock granted during a single fiscal year to any non-employee director, taken together with any cash fees paid to such non-employee director during the fiscal year, may not exceed $1,000,000 in total value, except for certain awards made to a non-executive chair of our Board of Directors.

Restricted Stock Units

RSUs represent the right to receive shares of the Company’s common stock at a specified date in the future. The fair value of the RSUs is based on the fair value of the underlying shares on the date of grant.

A summary of the Company’s RSU activity is as follows:


	UNITS	WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested RSUs as of December 31, 2023	2,588,403	$	23.77
Granted*	2,252,411	17.84
Vested**	(1,111,181)	23.71
Forfeited	(279,526)	20.85
Cancelled*	(42,098)	24.21
Non-vested RSUs as of September 30, 2024	3,408,009	$	20.10

___________________________________

**The number of the RSUs vested included 408,378 shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements.

Equity-based compensation expenses related to the RSUs were $8,069, $7,260, $24,388, and $19,397 for three and nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024, the total unrecognized equity-based compensation expense related to outstanding RSUs was $49,584, which is expected to be recognized over a weighted-average period of 24.6 months.

Performance Stock Units

PSUs are issued under the 2020 Incentive Plan and represent the right to receive shares of the Company’s common stock at a specified date in the future based on the satisfaction of various service conditions and the achievement of certain performance thresholds, including year over year revenue growth, unlevered free cash flow growth, annual revenue, and annual EBITDA. The PSUs granted in 2023 and 2024 also contains market conditions.

Share-based compensation for the PSUs is only recognized to the extent a threshold is probable of being achieved and is recognized using the accelerated attribution approach. The Company will continue to assess the probability of each condition being achieved at each reporting period to determine whether and when to recognize compensation costs.

A summary of the Company’s PSU activity for the period ended September 30, 2024 is as follows:


	UNITS	WEIGHTED- AVERAGE GRANT DATE FAIR VALUE
Non-vested PSUs as of December 31, 2023	849,467	$	24.84
Granted*	338,445	18.98
Vested**	(30,728)	24.83
Forfeited	(20,042)	21.46
Cancelled*	(394,050)	27.09
Non-vested PSUs as of September 30, 2024	743,092	$	21.07

___________________________________

* During the first half of 2024, the Company modified an award for a recipient, resulting in 6,651 shares assumed to be granted and cancelled for accounting purpose.

** The number of the PSUs vested included 46,785 shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements.

Equity-based compensation expenses related to the PSUs were $(358), $506, $964, and $(1,035) for the three and nine months ended at September 30, 2024 and 2023, respectively. At September 30, 2024, the total unrecognized equity-based compensation expense related to outstanding PSUs was $1,335, which is expected to be recognized over a weighted-average period of 15.7 months.


	THREE MONTHS ENDED SEPTEMBER 30,			NINE MONTHS ENDED SEPTEMBER 30,
		2024		2023		2024		2023
	(In thousands)
Cost of revenues		$	3,235	$	3,198	$	10,095	$	8,328
Sales and marketing		865		343		2,546		1,272
Research and development		1,302		1,919		4,306		4,789
General and administrative		2,785		3,185		10,096		6,409
Total		$	8,187	$	8,645	$	27,043	$	20,798

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Equity-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Equity-Based Compensation
Compensation expense	$ 8,187	$ 8,645	$ 27,043	$ 20,798
Cost of revenues
Equity-Based Compensation
Compensation expense	3,235	3,198	10,095	8,328
Sales and marketing
Equity-Based Compensation
Compensation expense	865	343	2,546	1,272
Research and development
Equity-Based Compensation
Compensation expense	1,302	1,919	4,306	4,789
General and administrative
Equity-Based Compensation
Compensation expense	$ 2,785	$ 3,185	$ 10,096	$ 6,409

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Cash flows from operating activities:
Net loss			$ (18,628)	$ (42,901)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of property and equipment			1,322	1,139
Amortization of intangible assets			48,495	40,099
Amortization of debt issuance costs			891	1,146
(Recovery of) provision for credit losses			393	52	$ 684
Equity-based compensation expense			27,043	20,798
Change in fair value of contingent considerations			8,092	11,316
Goodwill impairment expense	$ 0	$ 46,984	0	46,984
Deferred income taxes			(12,626)	(18,532)
Deferred income taxes
Accounts receivable			(10,973)	6,441
Prepaid expenses and other assets			(2,473)	85
Accounts payable, accrued expenses, and other liabilities			(9,774)	(1,851)
Deferred revenues			(2,122)	(6,978)
Other operating activities, net			1,457	1,631
Net cash provided by operating activities			31,097	59,429
Cash flows from investing activities:
Capital expenditures			(1,210)	(899)
Capitalized software development costs			(13,995)	(10,000)
Investment in intangible assets			0	(54)
Business acquisitions, net of cash acquired			0	(7,550)
Net cash used in investing activities			(15,205)	(18,503)
Cash flows from financing activities:
Proceeds from borrowings on term loan debt			6,305	0
Payment of debt issuance costs			(1,216)	0
Payments on long-term debt and finance lease obligations			(1,505)	(2,290)
Payments for business acquisition related contingent consideration			(15,156)	0
Payment of taxes on shares withheld for employee taxes			(8,135)	(5,905)
Net cash used in financing activities			(19,707)	(8,195)
Effect of foreign exchange rate on cash and cash equivalents, and restricted cash			1,887	(107)
Net increase (decrease) in cash and cash equivalents, and restricted cash			(1,928)	32,624
Cash and cash equivalents, and restricted cash, at beginning of period			234,951	239,688	239,688
Cash and cash equivalents, and restricted cash, at end of period	$ 233,023	$ 272,312	233,023	272,312	$ 234,951
Supplemental disclosures of cash flow information
Cash paid for interest			11,171	13,668
Cash paid for taxes			11,630	12,365
Supplemental schedule of noncash investing and financing activities
Stock issuance or establish liabilities related to business acquisition contingent consideration			$ 3,707	$ 790

Leases - Maturities of our Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
OPERATING LEASES
Remainder of 2024	$ 1,489
2025	4,011
2026	2,837
2027	1,891
2028	1,034
Thereafter	6,087
Total future lease payments	17,349
Less: imputed interest	(2,348)
Total	$ 15,001	$ 11,330

Commitments and Contingencies (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Loss Contingencies [Line Items]
Payments on long-term debt and finance lease obligations	$ 15,156	$ 0
Common shares issued for contingent consideration	3,707
Contingent liabilities	43,696		$ 54,457
DIDB, Formedix, And ABM
Loss Contingencies [Line Items]
Contingent consideration arrangements, range of outcomes, high	88,550
Payment for contingent consideration cash and equity	18,863
Payments on long-term debt and finance lease obligations	15,156
Common shares issued for contingent consideration	3,707
Contingent liabilities	$ 44,477		$ 55,238

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Long-Term Debt and Revolving Line of Credit - Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 26, 2024	Dec. 31, 2023	Aug. 31, 2017
Debt Instrument
Term loans	$ 299,250
Less: debt issuance costs	(3,197)		$ (3,213)
Total	296,053		291,237
Current portion of long-term debt	(3,000)		(3,020)
Long-term debt, net of current portion and debt issuance costs	293,053		288,217
Secured Debt \| Line of Credit
Debt Instrument
Term loans	299,250	$ 100,000	294,450	$ 300,000
Revolving Credit Facility \| Line of Credit
Debt Instrument
Term loans	100,000		100,000
Revolving line of credit	$ 0		$ 0

Summary of Significant Accounting Policies - Accounts Receivable Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Accounts receivable, allowance for credit loss	$ 1,556	$ 1,312	$ 1,250

Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Money market funds	$ 78,253	$ 147,478
Interest rate swap assets	2,424	5,624
Total assets	80,677	153,102
Liabilities
Contingent liabilities	43,696	54,457
Total liabilities	43,696	54,457
LEVEL 1
Assets
Money market funds	78,253	147,478
Interest rate swap assets	0	0
Total assets	78,253	147,478
Liabilities
Contingent liabilities	0	0
Total liabilities	0	0
LEVEL 2
Assets
Money market funds	0	0
Interest rate swap assets	2,424	5,624
Total assets	2,424	5,624
Liabilities
Contingent liabilities	0	0
Total liabilities	0	0
LEVEL 3
Assets
Money market funds	0	0
Interest rate swap assets	0	0
Total assets	0	0
Liabilities
Contingent liabilities	43,696	54,457
Total liabilities	$ 43,696	$ 54,457

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 233,023	$ 234,951
Accounts receivable, net of allowance for credit losses of $1,556 and $1,312, respectively	95,956	84,857
Prepaid expenses and other current assets	21,630	20,393
Total current assets	350,609	340,201
Other assets:
Property and equipment, net	2,554	2,670
Operating lease right-of-use assets	12,070	9,604
Goodwill	718,483	716,333
Intangible assets, net of accumulated amortization of $323,609 and $273,522, respectively	453,225	487,043
Deferred income taxes	4,236	4,236
Other long-term assets	2,052	3,053
Total assets	1,543,229	1,563,140
Current liabilities:
Accounts payable	2,494	5,171
Accrued expenses	53,294	56,779
Current portion of deferred revenue	59,336	60,678
Current portion of long-term debt	3,000	3,020
Other current liabilities	4,581	4,375
Total current liabilities	122,705	130,023
Long-term liabilities:
Deferred revenue, net of current portion	1,177	1,070
Deferred income taxes	37,554	50,826
Operating lease liabilities, net of current portion	10,420	6,955
Long-term debt, net of current portion and debt discount	293,053	288,217
Other long-term liabilities	24,915	39,209
Total liabilities	489,824	516,300
Commitments and contingencies
Stockholders' equity
Preferred shares, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	0	0
Common shares, $0.01 par value, 600,000,000 shares authorized, 161,791,989 and 160,284,901 shares issued, 160,900,211 and 159,848,286 shares outstanding as of September 30, 2024 and December 31, 2023, respectively	1,618	1,603
Additional paid-in capital	1,209,196	1,178,461
Accumulated deficit	(134,858)	(116,230)
Accumulated other comprehensive loss	(5,013)	(7,593)
Treasury stock at cost, 891,778 and 436,615 shares at September 30, 2024 and December 31, 2023, respectively	(17,538)	(9,401)
Total stockholders' equity	1,053,405	1,046,840
Total liabilities and stockholders' equity	$ 1,543,229	$ 1,563,140

Prepaid Expenses and Other Current Assets and Other Long-Term Assets - Other Long-term Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Prepaid Expense and Other Assets, Current [Abstract]
Long-term deposits	$ 1,456	$ 1,451
Interest rate swap asset - long-term	0	1,151
Deferred financing cost	596	451
Total other long-term assets	$ 2,052	$ 3,053

Summary of Significant Accounting Policies - Allowance of Accounts Receivable (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 1,312	$ 1,250	$ 1,250
(Recovery of) provision for credit losses	393	$ 52	684
Charge-offs, net of recoveries	(149)		(622)
Ending balance	$ 1,556		$ 1,312

Long-Term Debt and Revolving Line of Credit - Maturity of Long Term Debt (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Maturities
Remainder of 2024	$ 750
2025	3,000
2026	3,000
2027	3,000
2028	3,000
Thereafter	286,500
TOTAL	$ 299,250

Long-Term Debt and Revolving Line of Credit

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Long-Term Debt and Revolving Line of Credit

The Company has been a party to a Credit Agreement since August 2017 that provides for a senior secured term loan and commitments under a revolving credit facility (as amended, the “Credit Agreement”). On June 26, 2024, the Company entered into the Fifth Amendment to its Credit Agreement (the "Amendment"), primarily amended (1) the principal amount of the term loan to $300,000 and its maturity date to June 26, 2031; and (2) extending the termination date of the $100,000 revolving credit commitment to June 26, 2029. The term loan under this Amendment has substantially the same terms as the existing term loans and revolving credit commitments. The Credit Agreement is collateralized by substantially all U.S. assets and stock pledges for the non-U.S. subsidiaries and contains various financial and nonfinancial covenants.

As multiple lenders syndicated funds under the credit agreements, the Company assessed whether existing debt was modified, extinguished, or if new debt was issued under GAAP guidelines. This evaluation was conducted separately for each lender's portion of the loans and commitments in the syndication, treating each lender's participation as if separate debt instruments existed. The Company either deferred and amortize debt issuance costs or recognized expenses or losses, according to the applicable accounting guidance for each category.

Borrowings under the Credit Agreement bear interest at a rate per annum equal to, at the election of the Borrowers, either (i) the Term SOFR rate, with a floor of 0.00% plus an applicable margin rate of 3.00% for the Term Loans and between 3.50% and 2.75% for loans under the Revolving Facility, depending on the applicable first lien leverage ratio, or (ii) an Alternate Base Rate (“ABR”), with a floor of 1.00%, plus an applicable margin rate of 2.00% for the Term Loans or between 2.50% and 1.75% for loans under the Revolving Facility, depending on the applicable first lien leverage ratio. The ABR is determined as the greatest of (a) the prime rate, (b) the federal funds effective rate, plus 0.50%, and (iii) the Term SOFR rate plus 1.00%. Additionally, the Company is obligated to pay a commitment fee of the unused amount and other customary fees.

As of September 30, 2024 and December 31, 2023, available borrowings under the revolving lines of credit were $100,000.

The effective interest rate was 8.96% and 8.67% for the nine months ended September 30, 2024 and 2023 for the term loan debt. As discussed previously, the Company entered into interest rate swap agreements and continues to use the swap to mitigate the interest risk for the Company's debt obligations under the Credit Agreement.

Interest incurred on the Credit Agreement with respect to the term loan amounted to $6,366, $6,844, $19,900, and $19,283 for the three and nine months ended September 30, 2024 and 2023, respectively. Accrued interest payable on the Credit Agreement with respect to the term loan amounted to $65 and $2,400 at September 30, 2024 and December 31, 2023, respectively, and is included in accrued expenses. Interest incurred on the Credit Agreement with respect to the revolving line of credit was $81, $65, $207, and $193 for the three and nine months ended September 30, 2024 and 2023, respectively. There was $1 and $2 accrued interest payable on the revolving line of credit September 30, 2024 and December 31, 2023.

Long-term debt consists of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Term loans	$	299,250	$	294,450
Revolving line of credit	—		—
Less: debt issuance costs	(3,197)		(3,213)
Total	296,053		291,237
Current portion of long-term debt	(3,000)		(3,020)
Long-term debt, net of current portion and debt issuance costs	$	293,053	$	288,217

The principal amount of long-term debt outstanding as of September 30, 2024 matures in the following years:


	Remainder of 2024		2025		2026		2027		2028		Thereafter		TOTAL
	(In thousands)
Maturities	$	750	$	3,000	$	3,000	$	3,000	$	3,000	$	286,500	$	299,250

The Credit Agreements require the Company to make an annual mandatory prepayment as it relates to the Company’s Excess Cash Flow calculation. For the year ended December 31, 2023, the Company was not required to make a mandatory prepayment on the term loan. Under the Credit Agreement (as amended by the Amendment), the Company is required to make a quarterly principal payment of $750 on the term loans starting September 30, 2024.

The fair values of the Company’s variable interest term loan and revolving line of credit are not significantly different than their carrying value because the interest rates on these instruments are subject to change with market interest rates.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Section 50
-Paragraph 6
-Subparagraph (a)
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Reference 3: 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 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

+ Details

Equity-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense	$ 8,187	$ 8,645	$ 27,043	$ 20,798
2020 Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units authorized (in shares)	20,000,000		20,000,000
Authorized amount	$ 1,000,000		$ 1,000,000
Time Based Class B Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Service period			5 years
Unrecognized share-based compensation expense	455		$ 455
Compensation expense	196	794	$ 252	1,062
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non-vested restricted stock (in shares)			16,842
Vesting period					3 years
Unrecognized share-based compensation expense, recognition period			11 months
Restricted Stock \| Pinnacle 21, LLC
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non-vested restricted stock (in shares)					87,127
Performance Based Class B Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based payment arrangement, income	173	579	$ 333	497
Unrecognized share-based compensation expense	249		$ 249
Unrecognized share-based compensation expense, recognition period			10 months 6 days
Time Based Restricted Stock \| Pinnacle 21, LLC
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense	106	318	$ 292	877
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non-vested restricted stock (in shares)			2,252,411
Compensation expense	8,069	24,388	$ 7,260	19,397
Unrecognized share-based compensation expense	49,584		$ 49,584
Unrecognized share-based compensation expense, recognition period			24 months 18 days
Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non-vested restricted stock (in shares)			338,445
Compensation expense	(358)	$ 964	$ 506	$ (1,035)
Unrecognized share-based compensation expense	$ 1,335		$ 1,335
Unrecognized share-based compensation expense, recognition period			15 months 21 days

Segment Data (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Data (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)
Segments
Number of operating segment \| segment			1
Revenue	$ 94,820	$ 85,576	$ 284,787	$ 266,327
Americas
Segments
Revenue	69,906	64,634	208,690	199,824
EMEA
Segments
Revenue	18,117	14,721	56,205	46,746
Asia Pacific
Segments
Revenue	$ 6,797	$ 6,221	$ 19,892	$ 19,757

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef
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-Paragraph 32
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479941/924-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

Prepaid Expenses and Other Current Assets and Other Long-Term Assets (Tables)

9 Months Ended

Sep. 30, 2024

Prepaid Expense and Other Assets, Current [Abstract]

Schedule of Prepaid and Other Current Assets

Prepaid expense and other current assets at September 30, 2024 and December 31, 2023 consist of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Prepaid expenses	$	7,345	$	6,363
Income tax receivable	3,233		3,395
Research and development tax credit receivable	7,112		5,004
Current portion of interest rate swap asset	2,424		4,473
Other current assets	1,516		1,158
Prepaid expenses and other current assets	$	21,630	$	20,393

Schedule of Other Long-Term Assets

Other long-term assets at September 30, 2024 and December 31, 2023 consisted of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Long-term deposits	$	1,456	$	1,451
Interest rate swap asset - long-term	—		1,151
Deferred financing cost	596		451
Total other long-term assets	$	2,052	$	3,053

Summary of Significant Accounting Policies - Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	May 31, 2022
Derivative
Embedded derivative, fair value of embedded derivative liability	$ 2,424		$ 2,424		$ 5,624
Gains reclassified from AOCI into income (loss)	1,529	$ 1,489	4,580	$ 3,751
Interest rate swap assets	2,424		2,424		5,624
Not Designated as Hedging Instrument, Economic Hedge \| Cash Flow Hedging \| Prepaid expenses and other current assets
Derivative
Interest rate swap assets	2,424		2,424		4,473
Not Designated as Hedging Instrument, Economic Hedge \| Cash Flow Hedging \| Other long-term assets
Derivative
Interest rate swap assets	0		0		1,151
Level 2
Derivative
Interest rate swap assets	2,424		2,424		5,624
Level 2 \| Fair Value, Recurring
Derivative
Notional amounts	230,000		230,000		$ 230,000
Interest rate swap assets \| Not Designated as Hedging Instrument, Economic Hedge \| Cash Flow Hedging
Derivative
Interest rate						2.80%
Interest rate swap assets \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivative
Notional amounts						$ 230,000
Interest rate cash flow hedge gain to be reclassified during next 12 months	$ 2,424		$ 2,424

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Summary of Significant Accounting Policies
Software license revenue term of recognition period			1 year
Contract assets	$ 16,230		$ 16,230		$ 10,405
Contract liabilities	60,513		60,513		61,748
Contract with customer, liability, revenue recognized			55,782
Remaining performance obligation, amount	123,447		123,447
Capitalized contract cost, net	639		639		$ 655
Revenue	94,820	$ 85,576	284,787	$ 266,327
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Summary of Significant Accounting Policies
Remaining performance obligation, amount	$ 107,010		$ 107,010
Remaining performance obligation, expected timing of satisfaction, period	12 months		12 months
Remaining performance obligation, percentage	86.70%		86.70%
Minimum
Summary of Significant Accounting Policies
Subscription term			1 year
Maximum
Summary of Significant Accounting Policies
Subscription term			3 years
Software licenses transferred at a point in time \| Software Licenses
Summary of Significant Accounting Policies
Revenue	$ 10,202	9,916	$ 39,031	38,967
Software licenses transferred over time \| Software Licenses
Summary of Significant Accounting Policies
Revenue	25,710	21,414	74,395	59,092
Software licenses transferred over time \| Service Revenue
Summary of Significant Accounting Policies
Revenue	$ 58,908	$ 54,246	$ 171,361	$ 168,268

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Certara, Inc. and its wholly-owned subsidiaries (together, the “Company”) deliver software products and technology-driven services to customers to efficiently carry out and realize the full benefits of biosimulation in drug discovery, preclinical and clinical research, regulatory submissions and market access. The Company is a global leader in model-informed drug development, and the Company’s biosimulation software and technology-enabled services help optimize, streamline, or even waive certain clinical trials to accelerate programs, reduce costs, and increase the probability of success. The Company’s regulatory science and market access software and services are underpinned by technologies such as regulatory submissions software, natural language processing, and Bayesian analytics. When combined, these solutions allow the Company to offer customers end-to-end support across the entire product life cycle. The Company has operations in the United States, Australia, Brazil, Canada, China, Egypt, France, Germany, India, Italy, Japan, Korea, Luxembourg, Netherlands, Philippines, Poland, Portugal, Spain, Switzerland, and the United Kingdom.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table sets forth the assets and liabilities that were measured at fair value on a recurring and non-recurring basis by their levels in the fair value hierarchy at September 30, 2024:



	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
	(In thousands)
Assets
Money market funds	$	78,253	$	—	$	—	$	78,253
Interest rate swap assets	—		2,424		—		2,424
Total assets	$	78,253	$	2,424	$	—	$	80,677

Liabilities
Contingent liabilities	$	—	$	—	$	43,696	$	43,696
Total liabilities	$	—	$	—	$	43,696	$	43,696

The following table sets forth the assets and liabilities that were measured at fair value on a recurring and non-recurring basis by their levels in the fair value hierarchy at December 31, 2023:


	LEVEL 1		LEVEL2		LEVEL 3		TOTAL
	(In thousands)
Assets
Money market funds	$	147,478	$	—	$	—	$	147,478
Interest rate swap assets	—		5,624		—		5,624
Total assets	$	147,478	$	5,624	$	—	$	153,102

Liabilities
Contingent liabilities	$	—	$	—	$	54,457	$	54,457
Total liabilities	$	—	$	—	$	54,457	$	54,457

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes the Level 3 activity of the changes in the contingent consideration liability.



	SEPTEMBER 30, 2024
	(In thousands)
Beginning balance at December 31, 2023	$	54,457
Additions	—
Payments	(18,863)
Fair value remeasurement	8,102
Ending balance at September 30, 2024	$	43,696

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable consists of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Trade receivables	$	80,978	$	75,410
Unbilled receivables	16,230		10,405
Other receivables	304		354
Allowances for credit losses	(1,556)		(1,312)
Accounts receivable, net	$	95,956	$	84,857

Accounts Receivable, Allowance for Credit Loss

The following table presents the information regarding the allowance for credit losses:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Beginning balance	$	1,312	$	1,250
Provision for credit losses	393		684
Charge-offs, net of recoveries	(149)		(622)
Ending balance	$	1,556	$	1,312

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The notional amounts, fair values, and classification of derivative instruments in the condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023 were as follows:


Interest rate swap derivative designated as cash flow hedging instrument:	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Notional amounts	$	230,000	$	230,000
Prepaid expenses and other current assets	$	2,424	$	4,473
Other long-term assets	$	—	$	1,151

Contract Balances, Contract Asset, Contract Liability, and Receivable

Contract balances at September 30, 2024 and December 31, 2023 were as follows:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Contract assets	$	16,230	$	10,405
Contract liabilities	$	60,513	$	61,748

Summary of Revenue by Timing of Revenue Recognition

The following table presents the Company’s revenue by timing of revenue recognition to understand the risks of timing of transfer of control and cash flows:


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2024		2023		2024		2023
	(In thousands)
Software licenses transferred at a point in time	$	10,202	$	9,916	$	39,031	$	38,967
Software licenses transferred over time	25,710		21,414		74,395		59,092
Service revenues earned over time	58,908		54,246		171,361		168,268
Total	$	94,820	$	85,576	$	284,787	$	266,327

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company generally records its interim tax provision based upon a projection of the Company's estimated annual effective tax rate (""EAETR""). This EAETR is applied to the year-to-date consolidated pre-tax income to determine the interim provision for income taxes before discrete items. The effective tax rate (""ETR"") each period is impacted by a number of factors, including the relative mix of domestic and international earnings, permanent differences, adjustments to the valuation allowances, and discrete items. The currently forecasted ETR may vary from the actual year-end due to the changes in these factors. The Company's global ETR for the three and nine months ended September 30, 2024 and 2023 were 17%, 9%, 4%, and (0.3)%, respectively, including discrete tax items. The current year decrease in the ETR was principally due to the combined effect of the overall decrease in pre-tax book income, the impact of non-deductible items, and the tax effect of certain discrete items.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

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-Topic 740
-SubTopic 10
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-Subparagraph (b)
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
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-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Accrued Expenses and Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Accrued Liabilities, Current [Abstract]

Schedule Of Accrued Expenses

Accrued expenses consist of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Accrued compensation	$	26,470	$	28,624
Legal and professional accruals	2,627		3,913
Interest payable	130		2,351
Income taxes payable	1,700		1,010
Short-term contingent consideration liabilities	20,870		18,410
Other	1,497		2,471
Total accrued expenses	$	53,294	$	56,779

Other Noncurrent Liabilities

Other long-term liabilities consist of the following:


	SEPTEMBER 30, 2024		DECEMBER 31, 2023
	(In thousands)
Uncertain tax position liability	$	1,308	$	2,381
Contingent consideration	23,607		36,828
Total other long-term liabilities	$	24,915	$	39,209

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Foreign currency translation adjustment, tax	$ (390)	$ 254	$ (346)	$ (33)
Change in fair value from interest rate swap, tax	$ (795)	$ 37	$ (788)	$ 211

Concentrations of Credit Risk	9 Months Ended
Concentrations of Credit Risk	Sep. 30, 2024
Risks and Uncertainties [Abstract]
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk have consisted principally of cash and cash equivalent investments and trade receivables. The Company invests available cash in bank deposits, investment-grade securities, and short-term interest-producing investments, including government obligations and other money market instruments. At September 30, 2024 and December 31, 2023, the investments were bank deposits, overnight sweep accounts, and money market funds. The Company has adopted credit policies and standards to evaluate the risk associated with sales that require collateral, such as letters of credit or bank guarantees, whenever deemed necessary. Management believes that any risk of loss is significantly reduced due to the nature of the customers and distributors with which the Company does business. As of September 30, 2024 and December 31, 2023, no single customer accounted for more than 10% of the Company’s accounts receivable. No single customer accounted for more than 10% of the Company’s revenues during the nine months ended September 30, 2024 and 2023.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contingent consideration In connection with the business acquisitions, the Company is required to pay additional consideration if the acquired businesses achieve certain eligible revenue thresholds for certain periods. The maximum contingent considerations related to revenue thread to be earned are $88,550. Additionally, the Company agreed to further contingent consideration based on the resolution of certain tax contingencies related to the Formedix acquisition. During the nine months ended September 30, 2024, the Company made a combined payment of $18,863 on the contingent consideration, consisting of $15,156 in cash and $3,707 in Company's stock. The total contingent liabilities were $44,477 and $55,238 at September 30, 2024 and December 31, 2023, respectively. The contingent liabilities are included in accrued expenses and other long-term liabilities in the Company's condensed consolidated balance sheet. Legal proceedings The Company does not have any pending or threatened litigation which, individually or in the aggregate, would have a material adverse effect on its condensed consolidated financial statements as of September 30, 2024. Assurance-type warranty The Company includes an assurance commitment warranting that the application software products will perform in accordance with written user documentation and the agreements negotiated with customers. Since the Company does not customize its application software, warranty costs have historically been insignificant and expensed as incurred. For information related to commitments for future minimum lease payments, please see Note 7. "Leases".

Business Combinations	9 Months Ended
Business Combinations	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business Combinations	Business Combinations Acquisitions have been accounted for by using the acquisition method of accounting pursuant to FASB ASC 805, “Business Combinations.” Amounts allocated to the purchased assets and liabilities assumed are based upon the total purchase price and the estimated fair values of such assets and liabilities on the effective date of the purchase as determined by an independent third party. The results of operations for the acquisitions have been included in the Company’s results of operations prospectively from the date of acquisition. Since 2013, and as of September 30, 2024, the Company has completed 20 acquisitions, of which 13 have included software or technology. Details of acquisitions that have closed since the beginning of fiscal year 2023 are provided below. Drug Interaction Solutions, University of Washington ("DIDB") On June 20, 2023, the Company entered into an asset purchase agreement with the University of Washington and completed the acquisition of DIDB, including the Drug Interaction Database and related products, from The University of Washington for a total consideration of $8,340. The business combination was not significant to the Company’s condensed consolidated financial statements. The total estimated consideration included a portion of contingent consideration that is payable over the next two years in cash, not to exceed $2,000. Future payments of contingent consideration are based on eligible revenue for the period from July 1, 2023 through June 30, 2025. The fair value of the contingent consideration was estimated to be $790 as of the acquisition date. At September 30, 2024, the contingent consideration was remeasured to $136, resulting in a fair value adjustment of $4 and recorded in general and administrative expenses (“G&A”) on the accompanying condensed consolidated statement of operations and comprehensive income (loss). Based on the Company’s purchase price allocation, approximately $330, $5,600, $360, and $2,289 of the purchase price were assigned to trademarks, database content/technology, customer relationships and goodwill, respectively. The Company expects goodwill to be fully deductible for U.S. federal income tax purposes due to the fact that the acquisition was treated as an asset acquisition under the relevant sections of the Internal Revenue Code (“IRC”). Formedix Limited ("Formedix") On October 10, 2023, the Company completed the acquisition of Formedix, a provider of clinical metadata repository and clinical trial automation software, for a total estimated consideration of $41,389. The business combination was not material to the Company’s condensed consolidated financial statements. The total estimated consideration included a portion of contingent consideration that is payable over the next two years in cash, not to exceed $9,000. The fair value of the contingent consideration related to the revenue threshold was estimated to be $4,380 as of the acquisition date. Future payments of contingent consideration are based on achieving certain eligible revenue targets for each of the twelve-month periods ended December 31, 2023 and 2024, respectively. Additionally, the Company agreed to further contingent consideration based on the resolution of certain tax contingencies. In total, the fair value of the contingent consideration was estimated to be $5,161 as of the acquisition date. During the nine months ended September 30, 2024, the Company made a payment of $1,777 on contingent consideration. At September 30, 2024, the contingent consideration related to eligible revenue was remeasured to zero, resulting in a negative fair value remeasurement and adjustment of $1,919 and recorded in G&A on the accompanying condensed consolidated statement of operations and comprehensive income (loss). Based on the Company’s purchase price allocation, approximately $11,700, $3,100, and $25,062 of the purchase price were assigned to developed technology, customer relationships, and goodwill, respectively. The Company does not expect goodwill to be deductible due to the fact that the Company treated the acquisition as a stock acquisition under the relevant sections of the IRC. Applied BioMath, LLC ("ABM") On December 12, 2023, the Company completed the acquisition of ABM, an industry-leader in providing model-informed drug discovery and development support to help accelerate and de-risk therapeutic research and development, for a total estimated consideration of $36,594. The business combination was not material to the Company’s consolidated financial statements. Based on the Company’s purchase price allocation, approximately $4,600, $800, $13,700, and $15,872 of the purchase price were assigned to developed technology, non-compete agreements, customer relationships, and goodwill, respectively. The Company expects goodwill to be fully deductible for U.S. federal income tax purposes due to the fact the Company treated the acquisition as an asset acquisition under the relevant sections of the IRC. The total estimated consideration included a portion of contingent consideration that is payable over the next two years in cash, not to exceed $17,550. Future payments of contingent consideration are based on achieving certain eligible revenue targets for each of the twelve-month periods ended December 31, 2023 and 2024, respectively. The fair value of the contingent consideration was estimated to be $5,357 as of the acquisition date. During the nine months ended September 30, 2024, the Company made a payment of $4,730 on contingent consideration. At September 30, 2024, the contingent consideration related to eligible revenue was remeasured to zero, resulting in a negative fair value remeasurement and adjustment of $650 and recorded in G&A on the accompanying condensed consolidated statement of operations and comprehensive income (loss). The contingent considerations for all acquisitions were classified as liability and included in accrued expense and other long-term liabilities on the Company’s condensed consolidated balance sheet. The contingent consideration relates to eligible revenues that are remeasured on a recurring basis at fair value for each reporting period. Any changes in the fair value of these contingent liabilities are included in the earnings in the condensed consolidated statements of operations and comprehensive income (loss). The results of operations of the acquired businesses and the fair value of the acquired assets and liabilities assumed are included in the Company’s condensed consolidated financial statements with effect from the date of the acquisitions.