Commerce.com, Inc. Revenue Disclosure
3. Revenue recognition and deferred costs
Revenue recognition
The Company’s source of revenue consists of subscription solutions fees and partner and services fees. These services allow customers to access the Company’s subscription solutions over the contract period. The customer is not allowed to take possession of the solutions or transfer the solutions. The Company’s revenue arrangements do not contain general rights of refund in the event of cancellations.
Disaggregation of revenue
The following table disaggregates revenue by major source:
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|
Year ended December 31, |
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(in thousands) |
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2025 |
|
|
2024 |
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|
2023 |
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Subscription solutions fees |
|
$ |
255,623 |
|
|
$ |
247,870 |
|
|
$ |
229,265 |
|
Partner and services fees |
|
|
86,726 |
|
|
|
85,057 |
|
|
|
80,129 |
|
Revenue |
|
$ |
342,349 |
|
|
$ |
332,927 |
|
|
$ |
309,394 |
|
Revenue by geographic region was as follows:
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|
Year ended December 31, |
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(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
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Revenue: |
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|
|
|
|
|
|
|
|
|
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Americas – United States |
|
$ |
259,090 |
|
|
$ |
253,484 |
|
|
$ |
236,502 |
|
|
EMEA |
|
|
42,605 |
|
|
|
38,031 |
|
|
|
34,661 |
|
|
APAC |
|
|
24,751 |
|
|
|
25,750 |
|
|
|
24,128 |
|
|
Rest of World |
|
|
15,903 |
|
|
|
15,662 |
|
|
|
14,103 |
|
|
Revenue |
|
$ |
342,349 |
|
|
$ |
332,927 |
|
|
$ |
309,394 |
|
|
Revenue by geographical region is determined based on the region of the Company’s contracting entity, which may be different than the region of the customer. Revenue attributed to the United States was approximately 76 percent during fiscal 2025, 2024 and 2023. Revenue attributed to EMEA was approximately 12 percent, 11 percent, and 11 percent during fiscal 2025, 2024, and 2023, respectively. No single region, other than Unites States and EMEA, represented more than ten percent of total revenue during fiscal 2025, 2024 and 2023.
Deferred commissions
The Company amortizes certain sales commissions costs that are considered incremental and recoverable costs of obtaining a contract with a customer. The portion of capitalized costs expected to be amortized during the succeeding twelve-month period is recorded in current assets as deferred commissions, and the remainder is recorded in deferred commissions, net of current portion within the consolidated balance sheets. The Company did not recognize an impairment of deferred commissions during the years ended December 31, 2025 , 2024, and 2023, respectively.
Sales commissions of $4.5 million and $9.1 million were deferred for the years ended December 31, 2025 and 2024, respectively; and deferred commission amortization expense was $9.6 million, $9.9 million and $7.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.