Annual report pursuant to Section 13 and 15(d)

Revenues

v3.24.0.1
Revenues
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenues consist of service revenue and surcharge revenue. Service revenue consists of fees charged to customers for services provided by the Company. Surcharge revenue consists of fees charged to customers for the Company’s acquisition of data from federal, state and local jurisdictions and certain services from commercial data providers required to fulfill the Company’s performance obligations. Revenue is recognized when the Company satisfies its obligation to complete the service and delivers the screening report to the customer.
No customer accounted for more than 10% of the Company’s revenues for the years ended December 31, 2023, 2022, and 2021, respectively.
Disaggregated revenues were as follows:
Year Ended December 31,
2023 2022 2021
(in thousands)
Revenues
Service revenues $ 516,004  $ 577,796  $ 541,458 
Surcharge revenues 205,873  228,872  188,598 
Total revenues $ 721,877  $ 806,668  $ 730,056 
Contract Implementation Costs
Contract implementation costs represent incremental set up costs to fulfill contracts with customers, including, for example, salaries and wages incurred to onboard customers onto the Company’s platform to enable the customers to request and access completed background screening reports. Contract implementation costs, net of accumulated amortization are recorded in other non-current assets on the Company’s consolidated balance sheets and amortization expense is recorded in cost of services (exclusive of depreciation and amortization) in the Company’s consolidated statements of operations. Amortization of contract implementation costs included in cost of services (exclusive of depreciation and amortization) was $5.0 million, $4.5 million and $3.8 million for the years ended December 31, 2023, 2022, and 2021. See Note 4 — Prepaid Expenses and Other Current Assets, and Other Non-Current Assets for contract implementation costs included in the Company’s consolidated balance sheets.
Allowance for Expected Credit Losses
The activity in the Company’s allowance for expected credit losses was as follows:
Balance Beginning of Period
Provision for Credit Losses
Adjustments and Write Offs
 Balance End of Period
(in thousands)
Year ended December 31, 2023 $ 5,812  $ (383) $ (7) $ 5,422 
Year ended December 31, 2022 $ 4,284  $ 1,929  $ (401) $ 5,812 
Year ended December 31, 2021 $ 3,919  $ 1,073  $ (708) $ 4,284