☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
77-0485123 | ||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
1260 East Stringham Avenue,6th Floor Salt Lake City, UT | 84106 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.00001 par value per share | QUOT | New York Stock Exchange | ||||||||||||
Preferred Stock Purchase Rights | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Small reporting company | ☐ | |||||||||
Emerging growth company | ☐ |
Auditor Firm PCAOB ID: 42 | Auditor Name: Ernst & Young LLP | Auditor Location: San Jose, California |
Item 10. | Directors, Executive Officers, and Corporate Governance |
Independent? | Class | Age | Position | Director Since | Current Term Expires | Expiration of Term For Which Nominated | ||||||||||||||
Board-Nominated Director Nominees | ||||||||||||||||||||
Matthew Krepsik | II | 40 | Chief Technology Officer and CEO-Designee | — | — | 2025 | ||||||||||||||
Robert McDonald | ✓ | II | 68 | Director - Chair | 2018 | 2022 | 2025 | |||||||||||||
Continuing Directors | ||||||||||||||||||||
Lorraine Hariton | ✓ | III | 67 | Director | 2021 | 2023 | — | |||||||||||||
Andrew Gessow | ✓ | III | 64 | Director | 2013 | 2023 | — | |||||||||||||
David Oppenheimer | ✓ | III | 65 | Director | 2017 | 2023 | — | |||||||||||||
Alison Hawkins | ✓ | I | 56 | Director | 2021 | 2024 | — | |||||||||||||
Steve Horowitz | ✓ | I | 54 | Director | 2015 | 2024 | — | |||||||||||||
Eric D. Higgs | ✓ | I | 51 | Director | 2022 | 2024 | — | |||||||||||||
Director Who Is Not Standing For Re-election | ||||||||||||||||||||
Steven Boal | II | 56 | CEO | 1998 | 2022 | — |
Name | Age | Position(s) with Quotient | ||
Steven Boal (1) | 56 | Chief Executive Officer and Board Member | ||
Scott Raskin | 60 | President | ||
Yuneeb Khan (2) | 46 | Board-Appointed Future Chief Financial Officer, Principal Accounting Officer and Treasurer | ||
Matthew Krepsik (3) | 40 | Chief Technology Officer and Chief Executive Officer-Designee | ||
Connie Chen | 55 | General Counsel, Compliance Officer and Secretary | ||
John Kellerman (4) | 53 | Interim Chief Financial Officer |
(1) | On March 24, 2022, the Company announced Mr. Boal’s intention to retire as CEO by December 31, 2022 and his decision to not stand for re-election as a Class II member of the Board of Directors. |
(2) | On April 13, 2022, the Company announced Mr. Khan’s appointment as future CFO and that he is expected to join the Company by July 2022. |
(3) | On March 24, 2022, the Company announced Mr. Krepsik will assume office as the Company’s next CEO upon Mr. Boal’s retirement as CEO. For information on the business background of Mr. Krepsik, see “Directors” above. |
(4) | On April 13, 2022, the Company announced Mr. Kellerman’s appointment as Interim CFO effective April 5, 2022 until Mr. Khan commences his service as CFO. |
Item 11. | Executive Compensation |
(1) | On March 24, 2022, the Company announced Mr. Boal’s intention to retire as CEO by December 31, 2022 and his decision to not stand for re-election as a Class II member of the Board of Directors. |
(2) | Ms. Strayer resigned as CFO and Treasurer effective April 5, 2022. |
(3) | Mr. Krepsik joined the Company as Chief Analytics Officer effective April 26, 2021, and was promoted to the role of Chief Technology Officer on June 1, 2021. On March 24, 2022, the Company announced Mr. Krepsik will assume office as the Company’s next CEO upon Mr. Boal’s retirement as CEO. |
1 | For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, please see the section titled “Executive Compensation—Non-GAAP Financial Measure and Key Operating Metrics” below. |
Pay-for-Performance | A significant portion of pay for executive officers is at-risk and performance-based with metrics that align total compensation with the Company’s sustainable growth strategy and values, annual financial objectives, and performance of our stock price.At-risk compensation includes short-term cash and performance-based equity awards as long-term incentives. | |
Alignment with Stockholders | Our compensation programs align executive officers’ interests with those of our stockholders, by providing equity-based forms of compensation and tying pay to Company and stock performance. We maintain stock ownership guidelines for all executive officers, and we remain committed to a culture of shared success through long-term equity awards. In response to stockholder feedback, we awarded a portion of the 2021 equity grant to performance-based RSUs, and we are continuing to utilize performance-based RSUs in equity grants to executive officers in 2022. | |
Competitive Appeal | Our compensation programs are designed to attract, reward, and retain talented and highly qualified executive officers whose abilities and alignment to our values are critical to our success. We use market-based pay information to align each executive officer’s compensation to their position, responsibilities, and impact. | |
Drive Sustainable Growth | We use our compensation programs to invest in and reward talent with the greatest potential to drive the long-term growth of our Company, while holding employees accountable to the Company’s strategy and values. |
We Do | We Don’t | |
✓ Review compensation programs annually with the Compensation Committee | × | |
✓ Maintain stock ownership guidelines for all NEOs | × | |
✓ Emphasize long-term equity in NEO pay mix | × | |
✓ Engage independent compensation consultant | × gross-up payments | |
✓ Ensure a significant portion of executive pay is“at-risk” dependent on company and/or stock price performance |
Element | Purpose | Characteristics | ||
Base Salary | Attract and retain talent | • Fixed: 100% cash • Size reflects market benchmarking, role responsibility, experience and individual performance and criticality to our success | ||
Short-Term Incentive ( Annual Incentive Plan (“AIP”)) | Motivate and reward accomplishment of short-term business goals | • Variable: 100% cash • AIP Target Opportunity reflects market practice expressed as % of base salary • Payouts are fully formulaic • In 2021, metrics were revenue and Adjusted EBITDA each weighted at 50% to align with our strategy and with a 75% blended achievement threshold required for payout in order to align with stockholder interest | ||
Long-Term Incentive (Long-Term Incentive (“LTI”)) | Motivate and reward sustainable long-term performance Align delivered pay to returns experienced by stockholders Attract and retain talent | • Variable: 100% equity • LTI Opportunity is sized based on market practices, role responsibility, retention objectives, and individual performance • Denominated 50% in time-based RSUs and 50% in performance-based RSUs based on market best practices and aligned with stockholder interest • 2022 performance-based RSUs are measured against Gross Margin attainment with a stock price modifier |
(1) | Compensation Pay Mix is representative of 2021 total target compensation. Total target compensation for Mr. Krepsik is reflective of his pay after his June 1, 2021 promotion to Chief Technology Officer. |
(2) | 2022 Long Term Incentive target for CEO and other NEOs is denominated in 50% performance-based RSUs and 50% time-based RSUs. |
Timing | Focus Areas | |
Q1 | • Evaluated business performance and financial metrics for the prior fiscal year under the Annual Incentive Plan (AIP) • Discussed individual contributions, performance, and future potential of NEOs to determine compensation adjustments and overall pay mix targets • Finalized new Long-Term Incentive Program (“LTI Program”) for NEOs based on stockholder feedback, updating plan to include Performance Restricted Stock Units • Aligned on performance measures, targets, and plan design for the AIP and any performance-based equity metrics | |
Q2 | • Completed market review of Change in Control agreement provisions to ensure market competitiveness and internal equity • Analyzed annual Compensation Program Risk Assessment | |
Q3 | • Reviewed annual meeting results including 96% approval of “say-on-pay” • Evaluated and set peer comparator group to be used for the upcoming compensation cycle • Reviewed talent and leadership development goals and progress against succession planning objectives for future leadership | |
Q4 | • Benchmarked compensation programs against peer comparator group to further prepare for pay decisions for the coming year • Discussed equity strategy and approach for 2022 and beyond • Reviewed performance and learning culture goals and progress against performance planning objectives for executive leadership |
Element | Description | Criteria | ||
Industry/Sector | The markets in which the Company competes for product success and talent. | Public US-based software-as-a-service If possible, companies with corporate headquarters in key technology hub locations. | ||
Revenue | Trailing Twelve Month (“TTM”) revenue is within a comparable range of Quotient’s revenue. | Generally between 0.5x to 3.7x ($300M to $1.6B) | ||
Market Capitalization | Market capitalization is within a comparable range of Quotient’s market capitalization. | Generally between 0.5x to 4.0x ($300M to $3.0B) |
2U, Inc. | LivePerson, Inc. | Stamps.com Inc. | ||
8x8, Inc. | QAD (2) | TripAdvisor (2) | ||
Benefitfocus, Inc. | QuinStreet, Inc. | TrueCar, Inc. | ||
Box, Inc. | �� | Rapid7, Inc. | Workiva (2) | |
Cloudera, Inc. | Shutterstock, Inc. | Yelp Inc. | ||
Cornerstone OnDemand, Inc. | SPS Commerce, Inc. | Zuora (2) |
(1) | Five9, Grubhub LogMein, Q2, and TradeDesk were removed from the peer group based on revenue and market capitalization comparison. |
(2) | QAD, TripAdvisor, Workiva, and Zuora are new members of the peer group selected in 2020 based on industry, revenue, and market capitalization comparison. |
Named Executive Officer | Base Salary as of December 31, 2020 | Base Salary as of December 31, 2021 | % Change | |||||||||
Steven Boal | $ | 500,000 | $ | 500,000 | — | % | ||||||
Scott Raskin | $ | 450,000 | $ | 465,000 | 3 | % | ||||||
Pamela Strayer | $ | 450,000 | $ | 450,000 | — | % | ||||||
Matthew Krepsik (1) | $ | — | $ | 375,000 | — | % | ||||||
Connie Chen | $ | 375,000 | $ | 380,000 | 1 | % |
2 | The Compensation Committee recommended and the Board approved revenue and Adjusted EBITDA as the corporate financial performance measures that supported our annual operating plan. We define (i) “revenue” as GAAP revenue as reflected in our quarterly and annual financial statements; and (ii) “Adjusted EBITDA” as net income (loss) adjusted for stock-based compensation, depreciation and amortization, interest expense, other income (expense) net, provision for (benefit from) income taxes, net change in fair value of escrowed shares and contingent consideration, enterprise resource planning software implementation costs, charges related to certain acquisition related costs, impairment of capitalized software development costs and restructuring charges, and as applicable, other special items. |
NEO | 2020 Target Incentive as % of base salary | 2021 Target Incentive as % of base salary | ||||||
Steven Boal | 100 | % | 100 | % | ||||
Scott Raskin | 100 | % | 100 | % | ||||
Pamela Strayer | 75 | % | 75 | % | ||||
Matthew Krepsik (1) | — | % | 75 | % | ||||
Connie Chen | 60 | % | 60 | % |
(1) | Mr. Krepsik’s bonus opportunity is reflective of his compensation at the time of promotion to the Chief Technology Officer role. Upon promotion, his bonus opportunity moved from 60% to 75%. His annual bonus was pro-rated to reflect the portion of the year during which he was employed with the Company, as well as the bonus opportunity applicable to him prior to and following his promotion to the role of Chief Technology Officer. |
2021 AIP Performance Payout Scale | ||||||
Achievement | Revenue Attainment | Adjusted EBITDA Attainment | Payout % | |||
Maximum | 585M | 83M | 125% | |||
Target | 545M | 66M | 100% | |||
Threshold (1) | 505M | 50M | 75% |
(1) | Either metric can fall below 75% of target and the plan will still pay out, as long as average of both metrics is above the 75% threshold. |
Actual 2021 AIP Performance Achievement | ||||||||||||
Metric | Target $M | Actual Achievement | Weight % | Weighted Blended Achievement % | ||||||||
$M | % | |||||||||||
Revenue | 545 | 526 | 88% | 50% | 44.0 | % | ||||||
Adjusted EBITDA | 66 | 41 | 62.0% | 50% | 31.0 | % | ||||||
Blended Performance | 75.0 | % |
Name | Target Opportunity $ | Payout % | Payout Value $ | |||||||||
Steven Boal | 500,000 | 75 | % | 375,000 | ||||||||
Scott Raskin (1) | 465,000 | 75 | % | 345,977 | ||||||||
Pamela Strayer | 337,500 | 75 | % | 253,125 | ||||||||
Matthew Krepsik (2) | 281,250 | 75 | % | 138,198 | ||||||||
Connie Chen (1) | 228,000 | 75 | % | 170,446 |
(1) | Payout for Mr. Raskin and Ms. Chen was pro-rated to account for their change in base salary effective April 1, 2021. |
(2) | Payout for Mr. Krepsik was pro-rated for his April 26, 2021 hire date and his AIP target was also prorated based upon the bonus opportunity applicable to him during his time as his Chief Analytics Officer and then his promotion as Chief Technology Officer effective June 1, 2021. |
Goal | Metric | Plan Characteristics & Payout | ||
Assess Operating Performance | Gross Margin Dollars | Aligned to 3 year operating plan • Metrics set at threshold, target, and maximum • Broad payout range at target to avoid consequences for performance close to target • Gross Margin performance will be assessed at interim 2-year mark and ifat-or-above | ||
Align to Stockholder Interest | Stock Price Modifier | Aligned to stockholder interest • Intended to be an aggressive goal • Avoids volatility of point-in-time • Mitigates exposure to extraordinary impacts in final assessment year |
2021 LTI NEO Grants | ||||||||||||||||||||
Name | RSUs (1) | PSUs (2) | Total LTI | |||||||||||||||||
$ | # | $ | # | $ | ||||||||||||||||
Steven Boal | 2,500,000 | 177,809 | 2,500,000 | 177,809 | 5,000,000 | |||||||||||||||
Scott Raskin | 1,400,000 | 99,573 | 1,400,000 | 99,573 | 2,800,000 | |||||||||||||||
Pamela Strayer | 1,400,000 | 99,573 | 1,400,000 | 99,573 | 2,800,000 | |||||||||||||||
Matthew Krepsik (3) | 1,428,000 | 85,000 | 974,100 | 85,000 | 2,402,100 | |||||||||||||||
Connie Chen | 750,000 | 53,342 | 750,000 | 53,342 | 1,500,000 |
(1) | The Compensation Committee approved equity awards for the executive officers (other than Mr. Krepsik) with a fixed grant date dollar value. The number of units granted subject to the PSU and RSU was determined based upon the closing stock price of the Company’s common stock on the grant date (March 1, 2021), which was $14.06. |
(2) | This table reflects the number of shares of Company common stock payable to the NEOs with respect to the PSU awards based upon achievement of target performance levels. Due to the rules for how the grant date fair value of long-term incentive awards must be calculated for GAAP accounting purposes, the 2021 Summary Compensation Table does not reflect the same PSU values as this table. PSUs shown here are also not reflective of actual payout amounts, which will still be determined at the close of the specific measurement period. Actual payout could be greater or less than what is illustrated here, dependent on the outcome of the applicable LTI performance metrics. |
(3) | As a new hire, Mr. Krepsik was granted RSUs representing a right to receive 85,000 shares on May 1, 2021. This award will (i) fully vest with respect to 10,000 RSUs on May 1, 2022, and (ii) with respect to the remaining 75,000 RSUs will vest with respect to 25% of such RSUs on May 1, 2022, and in equal quarterly installments thereafter until May 1, 2025. Upon promotion to Chief Technology Officer on June 1, 2021, Mr. Krepsik was awarded an additional 85,000 shares denominated in PSUs to align him to the LTI all executives participate in. His PSUs will follow the same terms of the program with respect to performance metrics as outlined above. |
Element | Description | Current Criteria | 2022 Criteria | |||
Revenue | Trailing Twelve Month (“TTM”) revenue is within a comparable range of Quotient’s revenue. | Generally between 0.5x and 4.0x ($200M to $1.6B) of Quotient revenue. | Generally between 0.5x and 3.7x ($300M to $2B) | |||
Market Capitalization | Market capitalization is within a comparable range of Quotient’s market capitalization. | Generally between 0.5x and 4.0x ($500M to $4.0B) of Quotient market capitalization. | Generally between 0.5x and 4.0x ($500M to $4.1B) |
Name | Guideline | |
Steven Boal | Lesser of 5 x salary or 200,000 shares | |
Scott Raskin | Lesser of 1 x salary or 30,000 shares | |
Pamela Strayer (1) | N/A | |
Matthew Krepsik (2) | Lesser of 1 x salary or 30,000 shares | |
Connie Chen | Lesser of 1 x salary or 30,000 shares |
(1) | Ms. Strayer resigned from the Company effective April 5, 2022. |
(2) | Mr. Krepsik was promoted to his role as Chief Technology Officer on June 1, 2021, at which time he became subject to the stock ownership guidelines. |
INDEXED RETURNS Quarter Ending | ||||||||||||||||||||||||||||||||||||||
Company / Index | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | ||||||||||||||||||||||||||||||||
Quotient Technology Inc. | $ | 100 | $ | 109 | $ | 99 | $ | 92 | $ | 88 | $ | 69 | ||||||||||||||||||||||||||
Russell 3000 Index | $ | 100 | $ | 119 | $ | 111 | $ | 142 | $ | 169 | $ | 209 | ||||||||||||||||||||||||||
S&P North American Technology Sector Index | $ | 100 | $ | 136 | $ | 139 | $ | 196 | $ | 282 | $ | 355 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(in thousands) | |||||||||||||||||
Net loss | $ | (45,568) | $ | (65,381) | $ | (37,057) | |||||||||||
Adjusted EBITDA | $ | 40,626 | $ | 46,037 | $ | 45,150 |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Net loss | $ | (45,568 | ) | $ | (65,381 | ) | $ | (37,057 | ) | |||
Adjusted EBITDA | $ | 40,626 | $ | 46,037 | $ | 45,150 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(in thousands) | |||||||||||||||||
Net loss | $ | (45,568) | $ | (65,381) | $ | (37,057) | |||||||||||
Adjustments: | |||||||||||||||||
Stock-based compensation | 22,812 | 28,371 | 32,137 | ||||||||||||||
Depreciation and amortization | 29,464 | 36,352 | 31,437 | ||||||||||||||
Acquisition related costs and other (1) | 13,508 | 12,361 | 7,670 | ||||||||||||||
Change in fair value of contingent consideration, net | 1,392 | 20,234 | 1,571 | ||||||||||||||
Interest expense | 15,177 | 14,521 | 13,955 | ||||||||||||||
Other income (expense), net | 210 | (1,140) | (5,223) | ||||||||||||||
Provision for income taxes | 3,631 | 719 | 660 | ||||||||||||||
Total adjustments | $ | 86,194 | $ | 111,418 | $ | 82,207 | |||||||||||
Adjusted EBITDA | $ | 40,626 | $ | 46,037 | $ | 45,150 |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Net loss | $ | (45,568 | ) | $ | (65,381 | ) | $ | (37,057 | ) | |||
Adjustments: | ||||||||||||
Stock-based compensation | 22,812 | 28,371 | 32,137 | |||||||||
Depreciation and amortization | 29,464 | 36,352 | 31,437 | |||||||||
Acquisition related costs and other (1) | 13,508 | 12,361 | 7,670 | |||||||||
Change in fair value of contingent consideration, net | 1,392 | 20,234 | 1,571 | |||||||||
Interest expense | 15,177 | 14,521 | 13,955 | |||||||||
Other income (expense), net | 210 | (1,140 | ) | (5,223 | ) | |||||||
Provision for income taxes | 3,631 | 719 | 660 | |||||||||
Total adjustments | $ | 86,194 | $ | 111,418 | $ | 82,207 | ||||||
Adjusted EBITDA | $ | 40,626 | $ | 46,037 | $ | 45,150 |
(1) | For the year ended December 31, 2021, Other includes a charge of $9.1 million related to the impairment of certain intangible assets due to the circumstances surrounding the termination of our partnership with Albertsons, and restructuring charges of $2.7 million. For the year ended December 31, 2020, Other includes a $8.8 million loss contingency/settlement related to a contract dispute with Albertsons associated with a guaranteed distribution fee arrangement, and restructuring charges of $1.5 million. For the year ended December 31, 2019, Other includes restructuring charges of $4.3 million. Restructuring charges relate to severance for impacted employees. Acquisition related costs primarily include certain bonuses contingent upon the acquired company meeting certain financial metrics over the contingent consideration period, together with diligence, accounting, and legal expenses incurred related to certain acquisitions. |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||||||||
Revenues | $ | 521,494 | 100.0 | % | $ | 445,887 | 100.0 | % | $ | 436,160 | 100.0 | % | |||||||||||||||||||||||
Cost of revenues | 332,672 | 63.8 | % | 277,914 | 62.3 | % | 263,606 | 60.4 | % | ||||||||||||||||||||||||||
Gross margin | 188,822 | 36.2 | % | 167,973 | 37.7 | % | 172,554 | 39.6 | % | ||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Sales and marketing | 112,263 | 21.5 | % | 104,527 | 23.4 | % | 101,244 | 23.2 | % | ||||||||||||||||||||||||||
Research and development | 44,941 | 8.6 | % | 40,316 | 9.0 | % | 39,076 | 9.0 | % | ||||||||||||||||||||||||||
General and administrative | 56,776 | 10.9 | % | 54,177 | 12.2 | % | 58,328 | 13.4 | % | ||||||||||||||||||||||||||
Change in fair value of contingent consideration | 1,392 | 0.3 | % | 20,234 | 4.5 | % | 1,571 | 0.4 | % | ||||||||||||||||||||||||||
Total operating expenses | 215,372 | 41.3 | % | 219,254 | 49.2 | % | 200,219 | 46.0 | % | ||||||||||||||||||||||||||
Loss from operations | (26,550) | (5.1) | % | (51,281) | (11.5) | % | (27,665) | (6.3) | % | ||||||||||||||||||||||||||
Interest expense | (15,177) | (2.9) | % | (14,521) | (3.3) | % | (13,955) | (3.2) | % | ||||||||||||||||||||||||||
Other income (expense), net | (210) | — | % | 1,140 | 0.3 | % | 5,223 | 1.2 | % | ||||||||||||||||||||||||||
Loss before income taxes | (41,937) | (8.0) | % | (64,662) | (14.5) | % | (36,397) | (8.3) | % | ||||||||||||||||||||||||||
Provision for income taxes | 3,631 | 0.7 | % | 719 | 0.2 | % | 660 | 0.2 | % | ||||||||||||||||||||||||||
Net loss | $ | (45,568) | (8.7) | % | $ | (65,381) | (14.7) | % | $ | (37,057) | (8.5) | % |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Promotion | $ | 252,831 | $ | 237,385 | $ | 246,479 | $ | 15,446 | 7 | % | $ | (9,094) | (4) | % | |||||||||||||||||||||||||||
Media | 268,663 | 208,502 | 189,681 | 60,161 | 29 | % | 18,821 | 10 | % | ||||||||||||||||||||||||||||||||
Total revenue | $ | 521,494 | $ | 445,887 | $ | 436,160 | $ | 75,607 | 17 | % | $ | 9,727 | 2 | % |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Revenues | $ | 521,494 | $ | 445,887 | $ | 436,160 | $ | 75,607 | 17 | % | $ | 9,727 | 2 | % |
Name and Principal Position | Year | Salary ($) | Stock Awards ($) (1) | Option Awards ($) (2) | Non-Equity Incentive Plan Compensation ($) (3) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||
Steven Boal | 2021 | 500,000 | 2,499,995 | — | 375,000 | 6,000 | (4) | 3,380,995 | ||||||||||||||||||||
Founder, Chief Executive Officer and Member of the Board of Directors | 2020 | 500,000 | 2,499,986 | 1,999,575 | — | 7,032 | 5,006,593 | |||||||||||||||||||||
2019 | 441,218 | 1,797,900 | 1,500,401 | — | 6,552 | 3,746,071 | ||||||||||||||||||||||
Scott Raskin | 2021 | 461,250 | 1,399,996 | — | 345,977 | 6,000 | (4) | 2,213,223 | ||||||||||||||||||||
President | 2020 | 450,000 | 1,849,992 | 1,624,655 | — | 57,032 | 3,981,679 | |||||||||||||||||||||
2019 | 224,567 | 4,267,493 | 4,016,217 | 40,018 | 5,874 | 8,554,169 | ||||||||||||||||||||||
Pamela Strayer (6) | 2021 | 450,000 | 1,399,996 | — | 253,125 | — | 2,103,121 | |||||||||||||||||||||
Former CFO & Treasurer | 2020 | 450,000 | 168,743 | — | — | 100,552 | 719,295 | |||||||||||||||||||||
2019 | 75,000 | 1,499,999 | 1,499,613 | — | 92 | 3,074,704 | ||||||||||||||||||||||
Matthew Krepsik (5) | 2021 | 254,545 | 1,388,900 | — | 138,198 | 6,000 | (4) | 1,787,643 | ||||||||||||||||||||
Chief Technology Officer and Chief Executive Officer - Designee | ||||||||||||||||||||||||||||
Connie Chen | 2021 | 378,750 | 749,989 | — | 170,446 | 6,000 | (4) | 1,305,185 | ||||||||||||||||||||
GC, Compliance Officer and Secretary | 2020 | 368,804 | 712,492 | 599,871 | — | 6,552 | 1,687,719 |
(1) | The amounts reported in this column for 2021 reflect the aggregate grant date fair value of RSUs and PSUs granted during the year as computed in accordance with FASB ASC Topic 718. The assumptions used to calculate these amounts are discussed in Note 10 to our notes to consolidated financial statements included in our Annual Report on Form 10-K as of December 31, 2021, as filed with the SEC on March 1, 2022. In accordance with SEC rules, the amounts included in this column for the PSU awards granted during 2021 are calculated based on the probable outcome of the performance conditions. As required by SEC rules, the amounts shown exclude the impact of estimated forfeitures related to service-based vesting conditions. Note that the amounts reported in this column reflect the accounting cost for these stock awards, and do not correspond to the actual economic value that may be received by the NEOs from them. The value of the PSUs granted in 2021, assuming that the highest level of performance conditions will be achieved, is as follows: $4,722,607 for Mr. Boal, $2,644,659 for Mr. Raskin, $2,644,659 for Ms. Strayer, $1,700,000 for Mr. Krepsik, and $1,416,777 for Ms. Chen. |
(2) | The amounts reported in this column for 2021 reflect the aggregate grant date fair market value of the options granted during the year, as computed in accordance with FASB ASC Topic 718. |
(3) | The amounts reflected in this column for 2021 represent cash payments earned under our Annual Incentive Plan. For more information please see “ Executive Compensation - Compensation Elements – Annual Incentive Plan. |
(4) | The amount reported represents 401(k) matching contributions. |
(5) | Mr. Krepsik was hired as Chief Analytics Officer effective as of April 26, 2021, and was appointed the Company’s Chief Technology Officer in June 2021. |
(6) | Ms. Strayer resigned as CFO and Treasurer effective April 5, 2022. |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Cost of revenues | $ | 332,672 | $ | 277,914 | $ | 263,606 | $ | 54,758 | 20 | % | $ | 14,308 | 5 | % | |||||||||||||||||||||||||||
Gross profit | $ | 188,822 | $ | 167,973 | $ | 172,554 | $ | 20,849 | 12 | % | $ | (4,581) | (3) | % | |||||||||||||||||||||||||||
Gross margin | 36 | % | 38 | % | 40 | % |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Sales and marketing | $ | 112,263 | $ | 104,527 | $ | 101,244 | $ | 7,736 | 7 | % | $ | 3,283 | 3 | % | |||||||||||||||||||||||||||
Percent of revenues | 22 | % | 23 | % | 23 | % |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Research and development | $ | 44,941 | $ | 40,316 | $ | 39,076 | $ | 4,625 | 11 | % | $ | 1,240 | 3 | % | |||||||||||||||||||||||||||
Percent of revenues | 9 | % | 9 | % | 9 | % |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
General and administrative | $ | 56,776 | $ | 54,177 | $ | 58,328 | $ | 2,599 | 5 | % | $ | (4,151) | (7) | % | |||||||||||||||||||||||||||
Percent of revenues | 11 | % | 12 | % | 13 | % |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration | $ | 1,392 | $ | 20,234 | $ | 1,571 | $ | (18,842) | (93) | % | $ | 18,663 | 1,188 | % |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Interest expense | $ | (15,177) | $ | (14,521) | $ | (13,955) | $ | (656) | 5 | % | $ | (566) | 4 | % | |||||||||||||||||||||||||||
Other income (expense), net | (210) | 1,140 | 5,223 | (1,350) | (118) | % | (4,083) | (78) | % | ||||||||||||||||||||||||||||||||
$ | (15,387) | $ | (13,381) | $ | (8,732) | $ | (2,006) | 15 | % | $ | (4,649) | 53 | % |
Year Ended December 31, | 2020 to 2021 | 2019 to 2020 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | 2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | 3,631 | $ | 719 | $ | 660 | $ | 2,912 | 405 | % | $ | 59 | 9 | % |
Total | Next 12 Months | Beyond 12 Months | |||||||||||||||
Debt (1) | $ | 203,208 | $ | 203,208 | $ | — | |||||||||||
Operating leases (2) | 31,838 | 4,907 | 26,931 | ||||||||||||||
Purchase obligations (3) | 24,574 | 11,214 | 13,360 | ||||||||||||||
Total | $ | 259,620 | $ | 219,329 | $ | 40,291 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash flows provided by operating activities | $ | 26,010 | $ | 26,465 | $ | 31,818 | |||||||||||
Cash flows used in investing activities | (14,720) | (11,369) | (16,824) | ||||||||||||||
Cash flows provided by (used in) financing activities | 3,309 | (17,174) | (92,235) | ||||||||||||||
Effects of exchange rates on cash | 66 | 66 | (23) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 14,665 | $ | (2,012) | $ | (77,264) |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2) | |||||||||||||||||||||||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | All Other Stock Awards: Number of Shares of Stock or Units (#) (3) | Grant Date Fair Value of Stock And Option Awards ($) (4) | |||||||||||||||||||||||||||
Steven Boal | — | 375,000 | 500,000 | 625,000 | — | — | — | — | — | |||||||||||||||||||||||||||
3/1/2021 | — | — | — | 133,356 | 177,809 | 355,618 | — | — | ||||||||||||||||||||||||||||
3/1/2021 | — | — | — | — | — | — | 177,809 | 2,499,995 | ||||||||||||||||||||||||||||
Scott Raskin | — | 348,750 | 465,000 | 581,250 | — | — | — | — | — | |||||||||||||||||||||||||||
3/1/2021 | — | — | — | 74,679 | 99,573 | 199,146 | — | — | ||||||||||||||||||||||||||||
3/1/2021 | — | — | — | — | — | — | 99,573 | 1,399,996 | ||||||||||||||||||||||||||||
Pamela Strayer | — | 253,125 | 337,500 | 421,875 | — | — | — | — | — | |||||||||||||||||||||||||||
3/1/2021 | — | — | — | 74,679 | 99,573 | 199,146 | — | — | ||||||||||||||||||||||||||||
3/1/2021 | — | — | — | — | — | — | 99,573 | 1,399,996 | ||||||||||||||||||||||||||||
Matthew Krepsik | 210,938 | 281,250 | 351,563 | — | — | — | — | — | ||||||||||||||||||||||||||||
8/1/2021 | — | — | — | 63,750 | 85,000 | 170,000 | — | — | ||||||||||||||||||||||||||||
5/1/2021 | — | — | — | — | — | — | 75,000 | 1,225,500 | ||||||||||||||||||||||||||||
5/1/2021 | — | — | — | — | — | — | 10,000 | 163,400 | ||||||||||||||||||||||||||||
Connie Chen | — | 171,000 | 228,000 | 285,000 | — | — | — | — | — | |||||||||||||||||||||||||||
3/1/2021 | — | — | — | 40,006 | 53,342 | 106,685 | — | — | ||||||||||||||||||||||||||||
3/1/2021 | — | — | — | — | — | — | 53,342 | 749,989 |
(1) | In 2021, the Company changed its Annual Incentive Plan to denominate payout in 100% cash to all NEOs; therefore, all amounts reflect cash, if any, issued under the Company’s Annual Incentive Plan. These amounts represent the threshold, target and maximum cash award levels set in 2021 under the AIP. |
(2) | The PSU awards, which were issued under the 2013 Equity Incentive Plan (the “2013 Plan”), are subject to vesting based upon the Company’s performance against certain performance metrics during the period beginning on January 1, 2021 and ending on December 31, 2023. The PSU awards vest with respect to 75% of the target number of PSUs for threshold performance, 100% for target performance, and 200% for maximum performance; provided that (i) up to one-third of the maximum possible PSUs may be deemed “banked” based upon Company performance which is at or above target as of December 31, 2022, and such PSUs have the potential to become vested even in the event that performance goals have been met at less than threshold level as of December 31, 2023, and (ii) the final payment of these awards may be adjusted downward by 20% based upon the Company’s performance against certain performance metrics. The numbers reflected in this column do not reflect any 20% downward adjustment as described herein. With the exception of certain qualifying terminations of employment (as described under “Potential Payments upon Termination, Change of Control or Certain Other Events,” the executive generally must provide service through the vesting date in order to vest in his or her PSUs. |
(3) | The RSUs granted under the 2013 Plan to each of the NEOs (other than Mr. Krepsik) in 2021 were granted subject to time-based vesting in quarterly installments over the four year period beginning on March 1, 2021, provided that the executive remains continually employed through each applicable vesting date. Mr. Krepsik’s May 1, 2021 award of 75,000 RSUs shall vest with respect to 25% of the award on May 1, 2022, and in equal quarterly installments thereafter until the May 1, 2025, and his May 1, 2021 award of 10,000 RSUs shall vest in full on May 1, 2022, in each case, subject to his continuous employment through each applicable vesting date. |
(4) | The amounts reported in this column reflect the grant date values of stock awards made to our NEOs computed in accordance with with FASB ASC Topic 718. If the outcome of the performance conditions as of the date of grant had been maximum performance, then the grant date fair value of the PSUs would have been as follows: $4,722,607 for Mr. Boal, $2,644,659 for Mr. Raskin, $2,644,659 for Ms. Strayer, $1,700,000 for Mr. Krepsik, and $1,416,777 for Ms. Chen. The assumptions used to calculate these amounts are discussed in Note 10 to our notes to consolidated financial statements included in our Annual Report on Form 10-K as of December 31, 2021, as filed with the SEC on March 1, 2022. |
Termination Event | Lump Sum (% of base salary) | Health Coverage Lump Sum (monthly COBRA premium factor) | ||||||||
Steven Boal | ||||||||||
Termination Without Cause/Resign for Good Reason | 100 | % | x 12 | |||||||
Scott Raskin | ||||||||||
Termination Without Cause/Resign for Good Reason | 100 | % | x 12 | |||||||
Pamela Strayer | ||||||||||
Termination Without Cause/Resign for Good Reason | 100 | % | x 12 | |||||||
Matthew Krepsik | ||||||||||
Termination Without Cause/Resign for Good Reason | 100 | % | x 12 | |||||||
Connie Chen | ||||||||||
Termination Without Cause | ||||||||||
75 | % | x 9 |
Name | Lump sum % of annual base salary | Lump sum % of target annual incentive | Health coverage monthly COBRA premium factor | Outstanding and unvested equity at termination (1) | ||||||||||
Steven Boal | 150 | % | 150 | % | x 18 | 100% vesting of time-vesting Equity Awards | ||||||||
Scott Raskin | 150 | % | 150 | % | x 18 | 100% vesting of time-vesting Equity Awards | ||||||||
Pamela Strayer | 150 | % | 150 | % | x 18 | 100% vesting of time-vesting Equity Awards | ||||||||
Matthew Krepsik | 150 | % | 150 | % | x 18 | 100% vesting of time-vesting Equity Awards | ||||||||
Connie Chen | 100 | % | 100 | % | x 12 | 100% vesting of time-vesting Equity Awards |
(1) | As noted below, the Current Change of Control Agreements provide that for any Equity Awards which are subject to performance-based vesting, all such performance goals and other vesting criteria shall be treated as set forth in the underlying award agreement – see “Equity Incentive Awards” below for a description of the terms applicable to the PSU awards held by each NEO in the event of a termination in connection with a Change in Control. |
Name | Scenario | Cash Severance ($) | COBRA Benefits($) | RSU & PSU Awards ($) (1) | Option Awards ($) (2) | Total ($) | ||||||||||||||||
Steven Boal | Termination Without Cause/ Resignation for Good Reason | 500,000 | 37,570 | — | — | 537,570 | ||||||||||||||||
Termination for Death | — | — | — | — | — | |||||||||||||||||
Termination for Disability | — | — | 439,776 | — | 439,776 | |||||||||||||||||
Termination without Cause or Resignation for Good Reason during the Change of Control Period | 1,500,000 | 56,355 | 3,761,784 | — | 5,318,139 | |||||||||||||||||
Termination for Death During the Change in Control Period | — | — | 1,319,343 | — | 1,319,343 | |||||||||||||||||
Change of Control | — | — | 3,761,784 | — | 3,761,784 | |||||||||||||||||
Scott Raskin | Termination Without Cause/ Resignation for Good Reason | 465,000 | 26,631 | — | — | 491,631 | ||||||||||||||||
Termination for Death | — | — | — | — | — | |||||||||||||||||
Termination for Disability | — | — | 246,277 | — | 246,277 | |||||||||||||||||
Termination without Cause or Resignation for Good Reason during the Change of Control Period | 1,395,000 | 39,947 | 3,866,020 | 39,452 | 5,340,419 | |||||||||||||||||
Termination for Death During the Change in Control Period | — | — | 738,832 | — | 738,832 | |||||||||||||||||
Change of Control | — | — | 3,866,020 | — | 3,866,020 | |||||||||||||||||
Pamela Strayer | Termination Without Cause/Resignation for Good Reason | 450,000 | 26,631 | — | — | 476,631 | ||||||||||||||||
Termination for Death | — | — | — | — | — | |||||||||||||||||
Termination for Disability | — | — | 246,277 | — | 246,277 | |||||||||||||||||
Termination without Cause or Resignation for Good Reason during the Change of Control Period | 1,181,250 | 39,947 | 1,981,748 | — | 3,202,945 | |||||||||||||||||
Termination for Death During the Change in Control Period | — | — | 738,832 | — | 738,832 | |||||||||||||||||
Change of Control | — | — | 1,981,748 | — | 1,981,748 | |||||||||||||||||
Matthew Krepsik | Termination Without Cause | 281,250 | 28,177 | — | — | 309,427 | ||||||||||||||||
Termination for Death | — | — | — | — | — | |||||||||||||||||
Termination for Disability | — | — | 140,149 | — | 140,149 | |||||||||||||||||
Termination without Cause or Resignation for Good Reason during the Change of Control Period | 656,250 | 37,570 | 1,261,400 | — | 1,955,220 | |||||||||||||||||
Termination for Death During the Change in Control Period | — | — | 630,700 | — | 630,700 | |||||||||||||||||
Change of Control | — | — | 1,261,400 | — | 1,261,400 | |||||||||||||||||
Connie Chen | Termination Without Cause | 285,000 | 18,685 | — | — | 303,685 | ||||||||||||||||
Termination for Death | — | — | — | — | — | |||||||||||||||||
Termination for Disability | — | — | 131,928 | — | 131,928 | |||||||||||||||||
Termination without Cause or Resignation for Good Reason during the Change of Control Period | 608,000 | 24,913 | 1,114,692 | — | 1,747,605 | |||||||||||||||||
Termination for Death During the Change in Control Period | — | — | 395,798 | — | 395,798 | |||||||||||||||||
Change of Control | — | — | 1,114,692 | — | 1,114,692 |
(1) | The value of accelerated vesting of unvested RSUs and PSUs is based upon the closing stock price on December 31, 2021, which was $7.42 per share. For the purpose of calculating the value of the acceleration of PSU awards in connection with a Change of Control in the absence of a termination of employment, this table assumes that such PSUs were not assumed, continued or substituted by the acquiror in connection with the Change of Control. |
(2) | The value of accelerated vesting of unvested stock options is based on the difference between the closing stock price on December 31, 2021, which was $7.42 per share, and the exercise price per option multiplied by the number of unvested options. This does not reflect any dollar value associated with the acceleration of unvested stock options with exercise prices in excess of $7.42 per share. |
Option Award | Stock Awards | |||||||||||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable (1) | Option Exercise Price ($) (2) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) (3) | Market Value of Shares or Units of Stock That Have Not Vested ($) (4) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (5) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (4) | ||||||||||||||||||||||||
Steven Boal | 200,000 | (6) | — | 5.33 | 2/6/2022 | — | — | — | — | |||||||||||||||||||||||
240,000 | (7) | — | 3.70 | 2/6/2023 | — | — | — | — | ||||||||||||||||||||||||
800,000 | (8) | — | 25.00 | 11/13/2023 | — | — | — | — | ||||||||||||||||||||||||
600,000 | (9) | — | 16.25 | 11/13/2023 | — | — | — | — | ||||||||||||||||||||||||
600,000 | (10) | — | 8.65 | 11/13/2023 | — | — | — | — | ||||||||||||||||||||||||
503,000 | (11) | — | 8.51 | 2/16/2026 | — | — | — | — | ||||||||||||||||||||||||
300,000 | (12) | — | 13.00 | 2/13/2027 | — | — | — | — | ||||||||||||||||||||||||
244,687 | (13) | 16,313 | (13) | 13.10 | 3/1/2028 | — | — | — | — | |||||||||||||||||||||||
205,926 | (14) | 93,603 | (14) | 9.96 | 3/1/2029 | — | — | — | — | |||||||||||||||||||||||
205,389 | (15) | 264,072 | (15) | 8.95 | 3/1/2030 | — | — | — | — | |||||||||||||||||||||||
47,000 | (42) | — | 8.51 | 2/16/2026 | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | 125,698 | (26) | 932,679 | — | — | ||||||||||||||||||||||||
— | — | — | — | 47,064 | (27) | 349,215 | — | — | ||||||||||||||||||||||||
— | — | — | — | 144,470 | (28) | 1,071,967 | — | — | ||||||||||||||||||||||||
— | — | — | — | 11,938 | (29) | 88,580 | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | 133,356 | 989,502 | |||||||||||||||||||||||||
Scott Raskin | 23,474 | (16) | — | 10.65 | 2/6/2027 | — | — | — | — | |||||||||||||||||||||||
12,931 | (17) | — | 11.60 | 6/4/2027 | — | — | — | — | ||||||||||||||||||||||||
634,051 | (18) | 493,150 | (18) | 7.34 | 9/1/2029 | — | — | — | — | |||||||||||||||||||||||
166,878 | (19) | 214,559 | (19) | 8.95 | 3/1/3030 | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | 238,420 | (30) | 1,769,076 | — | — | ||||||||||||||||||||||||
— | — | — | — | 102,130 | (31) | 757,805 | — | — | ||||||||||||||||||||||||
— | — | — | — | 80,904 | (32) | 600,308 | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | 74,679 | 554,118 | |||||||||||||||||||||||||
Pamela Strayer | 184,754 | (20) | 169,974 | (20) | 8.66 | 11/1/2029 | — | — | — | — | ||||||||||||||||||||||
— | — | — | — | 86,605 | (33) | 642,609 | — | — | ||||||||||||||||||||||||
80,904 | (34) | 600,308 | — | — | ||||||||||||||||||||||||||||
— | — | — | — | — | — | 74,679 | 554,118 | |||||||||||||||||||||||||
Matthew Krepsik | — | — | — | — | 75,000 | (35) | 556,500 | — | — | |||||||||||||||||||||||
— | — | — | — | 10,000 | (36) | 74,200 | — | — |
— | — | — | — | — | — | 63,750 | 473,025 | |||||||||||||||||||||||||
Connie Chen | 12,666 | (21) | — | 8.51 | 2/16/2026 | — | — | — | — | |||||||||||||||||||||||
100,000 | (22) | — | 13.00 | 2/13/2027 | — | — | — | — | ||||||||||||||||||||||||
50,625 | (23) | 3,375 | (23) | 13.10 | 3/1/2028 | — | — | — | — | |||||||||||||||||||||||
58,345 | (24) | 26,521 | (24) | 9.96 | 3/1/2029 | — | — | — | — | |||||||||||||||||||||||
61,616 | (25) | 79,222 | (25) | 8.95 | 3/1/2030 | — | — | — | — | |||||||||||||||||||||||
37,334 | (41) | — | 8.51 | 2/16/2026 | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | 2,500 | (37) | 18,550 | — | — | ||||||||||||||||||||||||
— | — | — | — | 13,335 | (38) | 98,946 | — | — | ||||||||||||||||||||||||
— | — | — | — | 37,710 | (39) | 279,808 | — | — | ||||||||||||||||||||||||
— | — | — | — | 43,341 | (40) | 321,590 | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | 40,006 | 296,845 |
(1) | Option is subject to accelerated vesting upon a qualifying termination of the executive’s employment with us as described above in “Potential Payments upon Termination, Change of Control or Certain Other Events.” |
(2) | For options granted prior to our initial public offering, the amounts in this column represent at least the per-share fair value of a share of our common stock on the date of grant, as determined by our Board or, for options granted after our initial public offering, based on the closing share price of our common stock on the NYSE on the date of grant. |
(3) | The shares of common stock underlying the RSUs are subject to accelerated vesting upon a qualifying termination of the executive’s employment with us as described above in “Potential Payments upon Termination, Change of Control or Certain Other Events.” |
(4) | The market values of the RSUs and PSUs in these columns that have not vested are calculated by multiplying the number of units shown in the table by the closing share price of our common stock on December 31, 2021, which was $7.42. |
(5) | The PSU awards are subject to vesting based upon the Company’s performance against certain performance metrics during the period beginning on January 1, 2021 and ending on December 31, 2023. The shares of common stock underlying the PSUs reflected in this column are assuming the threshold level of performance conditions will be achieved and will vest upon achievement of targets directly tied to the Company’s performance and are subject to accelerated vesting upon a qualifying termination of the executive’s employment with us as described above in “Potential Payments upon Termination, Change of Control or Certain Other Events.” |
Note | Grant | Incremental Vesting Dates | ||
(6) | 2/7/2012 | 25% on 2/7/2013; 1/48 monthly thereafter for next 3 years. | ||
(7) | 2/7/2013 | 25% on 2/7/2014; 1/48 monthly thereafter for next 3 years. | ||
(8) | 11/14/2013 | 25% on 11/14/2014; 1/48 monthly thereafter for next 3 years. | ||
(9) | 11/14/2013 | 25% on 11/14/2014; 1/48 monthly thereafter for next 3 years. | ||
(10) | 11/14/2013 | 25% on 11/14/2014; 1/48 monthly thereafter for next 3 years. | ||
(11) | 2/17/2016 | 25% on 2/17/2017; 1/48 monthly thereafter for next 3 years. | ||
(12) | 2/14/2017 | 25% on 2/14/2018; 1/48 monthly thereafter for next 3 years. | ||
(13) | 3/1/2018 | 1/48 on 4/1/2018; 1/48 monthly thereafter for next 4 years. | ||
(14) | 3/1/2019 | 1/48 on 4/1/2019; 1/48 monthly thereafter for next 4 years. | ||
(15) | 3/1/2020 | 1/48 on 4/1/2020; 1/48 monthly thereafter for next 4 years. | ||
(16) | 2/7/2017 | 25% on 2/7/2018; 1/48 monthly thereafter for next 3 years. | ||
(17) | 6/5/2017 | 100% on 6/5/2018. | ||
(18) | 9/1/2019 | 25% on 9/1/2020; 1/48 monthly thereafter for next 3 years. | ||
(19) | 3/1/2020 | 1/48 on 4/1/2020; 1/48 monthly thereafter for next 4 years. | ||
(20) | 11/1/2019 | 25% on 11/1/2020; 1/48 monthly thereafter for next 3 years. | ||
(21) | 2/17/2016 | 25% on 2/17/2017; 1/48 monthly thereafter for next 3 years. | ||
(22) | 2/14/2017 | 25% on 2/14/2018; 1/48 monthly thereafter for next 3 years. | ||
(23) | 3/1/2018 | 1/48 on 4/1/2018; 1/48 monthly thereafter for next 4 years. | ||
(24) | 3/1/2019 | 1/48 on 4/1/2019; 1/48 monthly thereafter for next 4 years. | ||
(25) | 3/1/2020 | 1/48 on 4/1/2020; 1/48 monthly thereafter for next 4 years. |
(26) | 3/1/2020 | 6.25% on 6/1/2020; 6.25% quarterly thereafter for next 4 years. | ||
(27) | 3/1/2019 | 6.25% on 6/1/2019; 6.25% quarterly thereafter for next 4 years. | ||
(28) | 3/1/2021 | 6.25% on 6/1/2021; 6.25% quarterly thereafter for next 4 years. | ||
(29) | 3/1/2018 | 6.25% on 6/1/2018; 6.25% quarterly thereafter for next 4 years. | ||
(30) | 9/1/2019 | 25% on 9/1/2020; 6.25% quarterly thereafter for next 3 years. | ||
(31) | 3/1/2020 | 6.25% on 6/1/2020; 6.25% quarterly thereafter for next 4 years. | ||
(32) | 3/1/2021 | 6.25% on 6/1/2021; 6.25% quarterly thereafter for next 4 years. | ||
(33) | 11/1/2019 | 25% on 11/1/2020; 6.25% quarterly thereafter for next 3 years. | ||
(34) | 3/1/2021 | 6.25% on 6/1/2021; 6.25% quarterly thereafter for next 4 years. | ||
(35) | 5/1/2021 | 25% on 5/1/2022; 6.25% quarterly thereafter for next 3 years. | ||
(36) | 5/1/2021 | 100% on 5/1/2022. | ||
(37) | 3/1/2018 | 6.25% on 6/1/2018; 6.25% quarterly thereafter for next 4 years. | ||
(38) | 3/1/2019 | 6.25% on 6/1/2019; 6.25% quarterly thereafter for next 4 years. | ||
(39) | 3/1/2020 | 6.25% on 6/1/2020; 6.25% quarterly thereafter for next 4 years. | ||
(40) | 3/1/2021 | 6.25% on 6/1/2021; 6.25% quarterly thereafter for next 4 years. | ||
(41) | 2/17/2016 | 25% on 2/17/2017; 1/48 monthly thereafter for next 3 years. | ||
(42) | 2/17/2016 | 25% on 2/17/2017; 1/48 monthly thereafter for next 3 years. |
Option Award | Stock Awards | |||||||||||||||
Name | Number of Shares Acquired on Exercise | Value Released on Exercise ($) | Number of Shares Acquired on Vesting | Value Realized on Vesting ($) (1) | ||||||||||||
Steven Boal | — | — | 187,105 | 1,789,289 | ||||||||||||
Scott Raskin | — | — | 212,869 | 2,127,605 | ||||||||||||
Pamela Strayer | — | — | 71,398 | 754,931 | ||||||||||||
Matthew Krepsik | — | — | — | — | ||||||||||||
Connie Chen | — | — | 59,963 | 598,756 |
(1) | Calculated by multiplying (i) the closing price of our common stock on the vesting date or if such day is the weekend or a holiday, on the immediately preceding trading day, by (ii) the number of shares of our common stock acquired upon vesting. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Name of Beneficial Owner | Number of Shares Beneficially Owned | Percent Owned | ||||||
Directors, Director Nominee(s) and Executive Officers: | ||||||||
Steven Boal (1) | 8,414,076 | 8.85 | % | |||||
Scott Raskin (2) | 1,481,048 | 1.56 | % | |||||
Pamela Strayer (3) | 529,580 | * | ||||||
Matthew Krepsik (4) | 191,000 | * | ||||||
Connie Chen (5) | 671,199 | * | ||||||
John Kellerman (6) | 18,901 | * | ||||||
Andrew Jody Gessow (7) | 521,446 | * | ||||||
Lorraine Hariton (8) | 8,426 | * | ||||||
Alison Hawkins (9) | — | * | ||||||
Eric Higgs (10) | — | |||||||
Steve Horowitz (11) | 421,489 | * | ||||||
Robert McDonald (12) | 75,333 | * | ||||||
David Oppenheimer (13) | 68,465 | * | ||||||
All executive officers, directors and director nominee(s) as a group (12 persons) (14) | 11,871,383 | 12.49 | % | |||||
5% Stockholders: | ||||||||
The Vanguard Group (15) | 8,060,947 | 8.48 | % | |||||
Trigran Investments, Inc. (16) | 7,347,371 | 7.73 | % | |||||
Engaged Capital (17) | 6,107,150 | 6.42 | % | |||||
Lynrock Lake LP (18) | 5,666,666 | 5.96 | % | |||||
BlackRock, Inc. (19) | 5,385,556 | 5.66 | % |
* | Represents beneficial ownership of less than 1% of the outstanding shares of our common stock. |
(1) | Consists of (i) 2,171,281 shares held of record by Mr. Boal, (ii) 456,174 shares held by the SMSEJ Family Trust U/A dated July 18, 2005 of which Mr. Boal is a co-trustee, (iii) 3,237 shares held by the EBB 2011 Trust dated September 23, 2011, of which Stuart Schiff is trustee, (iv) 3,237 shares held by the JMB 2011 Trust dated September 23, 2011, of which Stuart Schiff is trustee, (v) 3,237 shares held by the SEB 2011 Trust dated September 23, 2011, of which Stuart Schiff is trustee, (vi) 3,842,418 shares that are issuable upon the exercise of stock options, which are currently exercisable or exercisable within 60 days of March 31, 2022, and (vii)1,934,492 shares owned by Mr. Boal’s former spouse pursuant to a domestic relations order (the “DRO”) of which Mr. Boal maintains sole voting power pursuant to a grant of irrevocable proxy contained in the DRO. Mr. Boal exercises no voting power and no dispositive power over the shares described in clauses (iii), (iv) and (v) of the preceding sentence. |
(2) | Consists of (i) 486,565 shares held of record by Mr. Raskin, and (ii) 994,483 shares that are issuable upon the exercise of stock options, which are currently exercisable or exercisable within 60 days of March 31, 2022. |
(3) | Consists of (i) 297,049 shares held of record by Ms. Strayer, (ii) 10,826 shares issuable upon the vesting of RSUs within 60 days of March 31, 2022, and (iii) 221,705 shares that are issuable upon the exercise of stock options, which are currently exercisable or exercisable within 60 days of March 31, 2022. Ms. Strayer resigned as CFO and Treasurer effective April 5, 2022. |
(4) | Consists of (i) 162,250 shares held of record by Mr. Krepsik, and (ii) 28,750 shares issuable upon the vesting of RSUs within 60 days of March 31, 2022. |
(5) | Consists of (i) 323,727 shares held of record by Ms. Chen, and (ii) 347,472 shares that are issuable upon the exercise of stock options, which are currently exercisable or exercisable within 60 days of March 31, 2022. |
(6) | Consists of (i) 16,464 shares held of record by Mr. Kellerman, and (ii) 2,437 shares issuable upon the vesting of RSUs within 60 days of March 31, 2022. |
(7) | Consists of (i) 59,346 shares held of record by Mr. Gessow, (ii) 310,108 shares held of record by the Gessow Family Trust for which Mr. Gessow serves as trustee and (iii) 151,992 shares that are issuable upon the exercise of stock options, which are currently exercisable or exercisable within 60 days of March 31, 2022. |
(8) | Consists of 8,426 shares held of record by Ms. Hariton. |
(9) | Ms. Hawkins holds no shares of record. |
(10) | Mr. Higgs holds no shares of record. |
(11) | Consists of (i) 52,454 shares held of record by Mr. Horowitz, (ii) 325,000 shares held of record by the Horowitz Family Trust for which Mr. Horowitz serves as a trustee and (iii) 44,035 shares that are issuable upon the exercise of stock options, which are currently exercisable or exercisable within 60 days of March 31, 2022. |
(12) | Consists of 75,333 shares held of record by Mr. McDonald. |
(13) | Consists of (i) 46,914 shares held of record by Mr. Oppenheimer and (ii) 21,551 shares that are issuable upon the exercise of stock options, which are currently exercisable or exercisable within 60 days of March 31, 2022. |
(14) | Consists of (i) 6,438,245 shares beneficially owned by our current directors, director nominee(s) and executive officers, (ii) 31,187 shares issuable upon the vesting of RSUs within 60 days of March 31, 2022 for the benefit of such individuals and (iii) 5,401,951 shares that are issuable upon the exercise of stock options, which are currently exercisable or exercisable within 60 days of March 31, 2022. |
(15) | Based on information set forth in a Schedule 13G/A filed with the SEC on February 10, 2022 by The Vanguard Group. The Vanguard Group has sole voting power over zero shares reported, shared voting power over 166,173 of the shares reported, sole dispositive power over 7,828,830 of the shares reported, and shared dispositive power over 232,117 of the shares reported. The address of The Vanguard Group is 100 Vanguard Blvd., Malvern, PA 19355. |
(16) | Based on information set forth in a Schedule 13G/A filed with the SEC on February 10, 2022 by Trigran Investments, Inc. and several affiliated individuals. Trigran Investments, Inc. has sole voting power over zero shares reported, shared voting power over 6,890,118 of the shares reported, sole dispositive power over zero shares reported, and shared dispositive power over 7,347,371 of the shares reported. The address of Trigran Investments, Inc. is 630 Dundee Road, Suite 230, Northbrook, IL 60062. |
(17) | Based on information set forth in a Schedule 13D/A filed with the SEC on March 1, 2022 by Engaged Capital LLC, Engaged Capital Holdings, LLC, Glenn W. Welling, Engaged Capital Flagship Master Fund, LP, Engaged Capital Flagship Fund, LP, Engaged Capital Flagship Fund, Ltd., Christopher B. Hetrick and Matthew O’ Grady (collectively, “Engaged Capital”). Engaged Capital LLC, Engaged Capital Holdings, LLC and Glenn W. Welling have sole voting power over 6,107,150 of the shares reported, shared voting power over zero shares reported, sole dispositive power over 6,107,150 of the shares reported, and shared dispositive power over zero shares reported. Engaged Capital Flagship Master Fund, LP, Engaged Capital Flagship Fund, LP, and Engaged Capital Flagship Fund, Ltd. have sole voting power over 5,636,142 of the shares reported, shared voting power over zero shares reported, sole dispositive power over 5,636,142 of the shares reported, and shared dispositive power over zero shares reported. Christopher B. Hetrick and Matthew O’Grady have sole voting power over zero shares reported, shared voting power over zero shares reported, sole dispositive power over zero of the shares reported, and shared dispositive power over zero shares reported. The address of each of Engaged Capital Flagship Master and Engaged Capital Offshore is c/o Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. The address of each of Engaged Capital Fund, Engaged Capital, Engaged Holdings and Messrs. Welling and Hetrick is 610 Newport Center Drive, Suite 250, Newport Beach, California 92660. The address of Mr. O’Grady is PO Box 3004, Sag Harbor, New York 11937. |
(18) | Based on information set forth in a Schedule 13G filed with the SEC on February 14, 2022 by Lynrock Lake LP, Lynrock Lake Partners LLC and Cynthia Paul (collectively, “Lynrock Lake”). Lynrock has sole voting power over 5,666,666 of the shares reported, shared voting power over zero shares reported, sole dispositive power over 5,666,666 of the shares reported, and shared dispositive power over zero shares reported. The address of Lynrock is 2 International Drive, Suite 130, Rye Brook, NY 10573. |
(19) | Based on information set forth in a Schedule 13G/A filed with the SEC on February 3, 2022 by BlackRock, Inc. BlackRock, Inc. has sole voting power over 5,278,531 of the shares reported, shared voting power over zero shares reported, sole dispositive power over 5,385,556 of the shares reported, and shared dispositive power over zero shares reported. The address of BlackRock, Inc. is 55 East 52nd Street, New York, NY 10055. |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available For future issuance under equity compensation plans | |||||||||
Equity compensation plans approved by security holders | 12,279,032 | (1) | 11.32 | (2) | 11,766,364 | (3) | ||||||
Equity compensation plans not approved by security holders | n/a | n/a | n/a | |||||||||
Total | 12,279,032 | 11,766,364 |
(1) | Excludes purchase rights accruing under our 2013 Employee Stock Purchase Plan. |
(2) | The weighted average exercise price relates solely to outstanding stock option shares since shares subject to RSUs have no exercise price. |
(3) | Includes 1,598,303 shares of common stock that remain available for purchase under the 2013 Employee Stock Purchase Plan and 10,168,061 shares of common stock that remain available for purchase under our 2013 Plan. Additionally, our 2013 Plan provides for automatic increases in the number of shares available for issuance under it on the first day of each year starting on January 1, 2015 and each subsequent anniversary through 2023, by an amount equal to the smaller of (a) 4% of the number of shares of our common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Board. Our 2013 Employee Stock Purchase Plan provides for automatic increases in the number of shares available for issuance under it on the first day of each year starting on January 1, 2015 and each subsequent anniversary through 2023, equal to the smallest of (a) 400,000, (b) 0.5% of the number of shares of our common stock issued and outstanding on the immediately preceding December 31, or (c) an amount determined by the Board. The amounts in this table do not include the evergreen increase that was effective on January 1, 2022. |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accounting Fees and | ||||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 237,417 | $ | 222,752 | |||||||
Accounts receivable, net of allowance for credit losses of $2,500 and $2,070 at December 31, 2021 and 2020, respectively | 177,216 | 137,649 | |||||||||
Prepaid expenses and other current assets | 19,312 | 18,547 | |||||||||
Total current assets | 433,945 | 378,948 | |||||||||
Property and equipment, net | 22,660 | 17,268 | |||||||||
Operating lease right-of-use assets | 23,874 | 16,222 | |||||||||
Intangible assets, net | 13,003 | 44,898 | |||||||||
Goodwill | 128,427 | 128,427 | |||||||||
Other assets | 13,571 | 1,029 | |||||||||
Total assets | $ | 635,480 | $ | 586,792 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 18,021 | $ | 15,959 | |||||||
Accrued compensation and benefits | 20,223 | 14,368 | |||||||||
Other current liabilities | 95,279 | 70,620 | |||||||||
Deferred revenues | 26,778 | 12,027 | |||||||||
Contingent consideration related to acquisitions | 22,275 | 8,524 | |||||||||
Convertible senior notes, net | 188,786 | — | |||||||||
Total current liabilities | 371,362 | 121,498 | |||||||||
Operating lease liabilities | 26,903 | 15,956 | |||||||||
Other non-current liabilities | 522 | 2,358 | |||||||||
Contingent consideration related to acquisitions | — | 20,930 | |||||||||
Convertible senior notes, net | — | 177,168 | |||||||||
Deferred tax liabilities | 1,991 | 1,853 | |||||||||
Total liabilities | 400,778 | 339,763 | |||||||||
Commitments and contingencies (Note 15) | — | — | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.00001 par value—10,000,000 shares authorized; 250,000 shares designated as Series A Junior Participating Preferred Stock; and no shares issued or outstanding at December 31, 2021 and 2020 | — | — | |||||||||
Common stock, $0.00001 par value—250,000,000 shares authorized; 94,779,442 and 91,743,302 shares issued and outstanding at December 31, 2021 and 2020, respectively | 1 | 1 | |||||||||
Additional paid-in capital | 731,672 | 698,333 | |||||||||
Accumulated other comprehensive loss | (1,099) | (1,001) | |||||||||
Accumulated deficit | (495,872) | (450,304) | |||||||||
Total stockholders’ equity | 234,702 | 247,029 | |||||||||
Total liabilities and stockholders’ equity | $ | 635,480 | $ | 586,792 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Revenues | $ | 521,494 | $ | 445,887 | $ | 436,160 | |||||||||||
Cost of revenues | 332,672 | 277,914 | 263,606 | ||||||||||||||
Gross margin | 188,822 | 167,973 | 172,554 | ||||||||||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | 112,263 | 104,527 | 101,244 | ||||||||||||||
Research and development | 44,941 | 40,316 | 39,076 | ||||||||||||||
General and administrative | 56,776 | 54,177 | 58,328 | ||||||||||||||
Change in fair value of contingent consideration | 1,392 | 20,234 | 1,571 | ||||||||||||||
Total operating expenses | 215,372 | 219,254 | 200,219 | ||||||||||||||
Loss from operations | (26,550) | (51,281) | (27,665) | ||||||||||||||
Interest expense | (15,177) | (14,521) | (13,955) | ||||||||||||||
Other income (expense), net | (210) | 1,140 | 5,223 | ||||||||||||||
Loss before income taxes | (41,937) | (64,662) | (36,397) | ||||||||||||||
Provision for income taxes | 3,631 | 719 | 660 | ||||||||||||||
Net loss | $ | (45,568) | $ | (65,381) | $ | (37,057) | |||||||||||
Net loss per share, basic and diluted | $ | (0.49) | $ | (0.72) | $ | (0.41) | |||||||||||
Weighted-average number of common shares used in computing net loss per share, basic and diluted | 93,686 | 90,412 | 91,163 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net loss | $ | (45,568) | $ | (65,381) | $ | (37,057) | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | (98) | (85) | (72) | ||||||||||||||
Comprehensive loss | $ | (45,666) | $ | (65,466) | $ | (37,129) |
Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 94,995,211 | $ | 1 | $ | 703,023 | — | $ | — | $ | (844) | $ | (322,093) | $ | 380,087 | |||||||||||||||||||||||||||||||||
Exercise of employee stock options | 433,762 | — | 2,337 | — | — | — | — | 2,337 | |||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 2,735,184 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock, stock purchase plan | 300,949 | — | 2,680 | — | — | — | — | 2,680 | |||||||||||||||||||||||||||||||||||||||
Payments for taxes related to net share settlement of equity awards | (1,004,914) | — | (9,838) | — | — | — | — | (9,838) | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (8,088,993) | — | — | 8,088,993 | (85,539) | — | — | (85,539) | |||||||||||||||||||||||||||||||||||||||
Retirement of treasury stock | — | — | (59,766) | (8,088,993) | 85,539 | — | (25,773) | — | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 32,624 | — | — | — | — | 32,624 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (72) | — | (72) | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (37,057) | (37,057) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 89,371,199 | $ | 1 | $ | 671,060 | — | $ | — | $ | (916) | $ | (384,923) | $ | 285,222 | |||||||||||||||||||||||||||||||||
Exercise of employee stock options | 331,007 | — | 2,714 | — | — | — | — | 2,714 | |||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 2,293,593 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for services provided | 117,210 | — | 689 | — | — | — | — | 689 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock, stock purchase plan | 474,178 | — | 2,289 | — | — | — | — | 2,289 | |||||||||||||||||||||||||||||||||||||||
Payments for taxes related to net share settlement of equity awards | (843,885) | — | (7,203) | — | — | — | — | (7,203) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 28,784 | — | — | — | — | 28,784 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (85) | — | (85) | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (65,381) | (65,381) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 91,743,302 | $ | 1 | $ | 698,333 | — | $ | — | $ | (1,001) | $ | (450,304) | $ | 247,029 | |||||||||||||||||||||||||||||||||
Exercise of employee stock options | 1,245,453 | — | 13,199 | — | — | — | — | 13,199 | |||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 1,904,217 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for services provided | 35,535 | — | 223 | — | — | — | — | 223 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock, stock purchase plan | 477,283 | — | 3,020 | — | — | — | — | 3,020 | |||||||||||||||||||||||||||||||||||||||
Payments for taxes related to net share settlement of equity awards | (626,348) | — | (6,333) | — | — | — | — | (6,333) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 23,230 | — | — | — | — | 23,230 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (98) | — | (98) | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (45,568) | (45,568) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | 94,779,442 | $ | 1 | $ | 731,672 | — | $ | — | $ | (1,099) | $ | (495,872) | $ | 234,702 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net loss | $ | (45,568) | $ | (65,381) | $ | (37,057) | |||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 29,464 | 36,352 | 31,437 | ||||||||||||||
Stock-based compensation | 22,812 | 28,371 | 32,137 | ||||||||||||||
Amortization of debt discount and issuance cost | 11,618 | 11,011 | 10,438 | ||||||||||||||
Impairment of intangible assets | 9,086 | — | — | ||||||||||||||
Allowance for credit losses | 568 | 888 | 1,227 | ||||||||||||||
Deferred income taxes | 138 | 719 | 660 | ||||||||||||||
Change in fair value of contingent consideration | 1,392 | 20,234 | 1,571 | ||||||||||||||
Impairment of capitalized software development costs | — | — | 3,579 | ||||||||||||||
Other non-cash expenses | 5,465 | 3,275 | 2,392 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (40,135) | (13,232) | (7,142) | ||||||||||||||
Prepaid expenses and other assets | (14,326) | 3,164 | (11,145) | ||||||||||||||
Accounts payable and other liabilities | 27,576 | 15,554 | (62) | ||||||||||||||
Payments for contingent consideration and bonuses | (2,901) | (15,418) | — | ||||||||||||||
Accrued compensation and benefits | 6,070 | (197) | 1,567 | ||||||||||||||
Deferred revenues | 14,751 | 1,125 | 2,216 | ||||||||||||||
Net cash provided by operating activities | 26,010 | 26,465 | 31,818 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | (14,720) | (8,351) | (9,021) | ||||||||||||||
Purchases of intangible assets | — | (3,018) | (14,811) | ||||||||||||||
Acquisitions, net of cash acquired | — | — | (13,730) | ||||||||||||||
Proceeds from maturities of short-term investment | — | — | 20,738 | ||||||||||||||
Net cash used in investing activities | (14,720) | (11,369) | (16,824) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from issuances of common stock under stock plans | 16,219 | 5,002 | 5,017 | ||||||||||||||
Payments for taxes related to net share settlement of equity awards | (6,333) | (7,203) | (9,838) | ||||||||||||||
Repurchases and retirement of common stock under share repurchase program | — | — | (87,097) | ||||||||||||||
Principal payments on promissory note and finance lease obligations | (456) | (391) | (317) | ||||||||||||||
Payments of contingent consideration | (6,121) | (14,582) | — | ||||||||||||||
Net cash provided by (used in) financing activities | 3,309 | (17,174) | (92,235) | ||||||||||||||
Effect of exchange rates on cash and cash equivalents | 66 | 66 | (23) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 14,665 | (2,012) | (77,264) | ||||||||||||||
Cash and cash equivalents at beginning of period | 222,752 | 224,764 | 302,028 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 237,417 | $ | 222,752 | $ | 224,764 | |||||||||||
Supplemental disclosures of cash flow information | |||||||||||||||||
Cash paid for income taxes | $ | 287 | $ | 220 | $ | 352 | |||||||||||
Cash paid for interest | $ | 3,533 | $ | 3,510 | $ | 3,517 | |||||||||||
Supplemental disclosures of noncash investing and financing activities | |||||||||||||||||
Intangible asset acquisitions not yet paid | $ | — | $ | 1,250 | $ | 1,000 | |||||||||||
Fixed asset purchases not yet paid | $ | 20 | $ | 1,757 | $ | 783 | |||||||||||
Computer equipment acquired under promissory note | $ | — | $ | 1,107 | $ | — |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Promotion | $ | 252,831 | $ | 237,385 | $ | 246,479 | |||||||||||
Media | 268,663 | 208,502 | 189,681 | ||||||||||||||
Total Revenue | $ | 521,494 | $ | 445,887 | $ | 436,160 |
December 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 105,004 | — | — | $ | 105,004 | |||||||||||||||||
Total | $ | 105,004 | $ | — | $ | — | $ | 105,004 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Contingent consideration related to acquisitions | — | — | 22,275 | 22,275 | |||||||||||||||||||
Total | $ | — | $ | — | $ | 22,275 | $ | 22,275 |
December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 104,964 | — | — | $ | 104,964 | |||||||||||||||||
Total | $ | 104,964 | $ | — | $ | — | $ | 104,964 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Contingent consideration related to acquisitions | — | — | 29,454 | 29,454 | |||||||||||||||||||
Total | $ | — | $ | — | $ | 29,454 | $ | 29,454 |
Ubimo | Elevaate | Ahalogy | |||||||||||||||||||||
Level 3 | Level 3 | Level 3 | Total | ||||||||||||||||||||
Balance as of December 31, 2018 | — | 6,121 | 22,842 | 28,963 | |||||||||||||||||||
Addition related to acquisition (initial measurement) | 5,686 | — | — | 5,686 | |||||||||||||||||||
Change in fair value during the period | — | (2,587) | 4,158 | 1,571 | |||||||||||||||||||
Balance as of December 31, 2019 | 5,686 | 3,534 | 27,000 | 36,220 | |||||||||||||||||||
Change in fair value during the period | 15,244 | 4,990 | — | 20,234 | |||||||||||||||||||
Payments made during the period | — | — | (27,000) | (27,000) | |||||||||||||||||||
Balance as of December 31, 2020 | 20,930 | 8,524 | — | 29,454 | |||||||||||||||||||
Change in fair value during the period | 1,345 | 47 | — | 1,392 | |||||||||||||||||||
Payments made during the period | — | (8,571) | — | (8,571) | |||||||||||||||||||
Balance as of December 31, 2021 | $ | 22,275 | $ | — | $ | — | $ | 22,275 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Balance at beginning of period | $ | 2,070 | $ | 2,021 | $ | 1,200 | |||||||||||
Additions related to acquisitions | — | — | 377 | ||||||||||||||
Provision for expected credit losses | 568 | 888 | 1,227 | ||||||||||||||
Write-offs charged against the allowance | (138) | (839) | (783) | ||||||||||||||
Balance at end of period | $ | 2,500 | $ | 2,070 | $ | 2,021 |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Software | $ | 51,093 | $ | 47,357 | |||||||
Computer equipment | 23,696 | 23,912 | |||||||||
Leasehold improvements | 8,362 | 6,197 | |||||||||
Furniture and fixtures | 2,552 | 2,533 | |||||||||
Total | 85,703 | 79,999 | |||||||||
Accumulated depreciation and amortization | (68,052) | (65,959) | |||||||||
Projects in process | 5,009 | 3,228 | |||||||||
Property and equipment, net | $ | 22,660 | $ | 17,268 |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Bonus | $ | 9,045 | $ | 3,150 | |||||||
Commissions | 5,838 | 7,247 | |||||||||
Payroll and related expenses | 4,253 | 3,116 | |||||||||
Vacation | 1,087 | 855 | |||||||||
Accrued compensation and benefits | $ | 20,223 | $ | 14,368 |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Distribution fees | 46,313 | 36,245 | |||||||||
Traffic acquisition cost | 12,033 | 9,756 | |||||||||
Deferred cost related to a retailer agreement | 8,000 | — | |||||||||
Operating lease liabilities | 4,935 | 3,650 | |||||||||
Prefunded liability | 4,782 | 3,067 | |||||||||
Rebate liability | 2,444 | 2,696 | |||||||||
Marketing expenses | 636 | 2,251 | |||||||||
Liability related to purchased intangible asset | — | 1,250 | |||||||||
Interest payable | 292 | 282 | |||||||||
Other | 15,844 | 11,423 | |||||||||
Other current liabilities | $ | 95,279 | $ | 70,620 |
Purchase Consideration | Net Tangible Assets Acquired/ (Liabilities Assumed) | Identifiable Intangible Assets | Goodwill | Goodwill Deductible for Taxes | Acquisition Related Expenses (1) | ||||||||||||||||||||||||||||||
Ubimo | $ | 20,740 | $ | 384 | $ | 10,750 | $ | 9,606 | Not Deductible | $ | 579 | ||||||||||||||||||||||||
Elevaate | $ | 13,346 | $ | (60) | $ | 3,781 | $ | 9,625 | Not Deductible | $ | 549 | ||||||||||||||||||||||||
SavingStar | $ | 7,485 | $ | (1,126) | $ | 2,577 | $ | 6,034 | Not Deductible | $ | 556 | ||||||||||||||||||||||||
Ahalogy | $ | 36,432 | $ | 2,196 | $ | 11,580 | $ | 22,656 | Not Deductible | $ | 684 | ||||||||||||||||||||||||
$ | 78,003 | $ | 1,394 | $ | 28,688 | $ | 47,921 | $ | 2,368 |
Ubimo | Estimated Useful Life (in Years) | Elevaate | Estimated Useful Life (in Years) | SavingStar | Estimated Useful Life (in Years) | Ahalogy | Estimated Useful Life (in Years) | ||||||||||||||||||||||||||||||||||||||||
Developed technologies | $ | 7,100 | 4.0 | $ | 3,307 | 5.0 | $ | 1,476 | 3.0 | $ | 3,100 | 4.0 | |||||||||||||||||||||||||||||||||||
Customer relationships | 3,400 | 2.0 | 379 | 5.0 | 1,040 | 3.0 | 6,210 | 6.0 | |||||||||||||||||||||||||||||||||||||||
Trade names | 250 | 4.0 | 95 | 3.0 | 61 | 1.5 | 650 | 4.0 | |||||||||||||||||||||||||||||||||||||||
Vendor relationships | — | — | — | — | — | — | 1,620 | 2.0 | |||||||||||||||||||||||||||||||||||||||
Total identifiable intangible assets | $ | 10,750 | $ | 3,781 | $ | 2,577 | $ | 11,580 |
December 31, 2021 | |||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted Average Amortization Period (Years) | ||||||||||||||||||||
Media service rights | $ | 35,582 | $ | (32,282) | $ | 3,300 | 0.7 | ||||||||||||||||
Developed technologies | 27,170 | (22,235) | 4,935 | 1.7 | |||||||||||||||||||
Promotion service rights | 24,426 | (23,419) | 1,007 | 0.6 | |||||||||||||||||||
Customer relationships | 22,690 | (19,311) | 3,379 | 2.4 | |||||||||||||||||||
Data access rights | 10,206 | (10,206) | — | 0.0 | |||||||||||||||||||
Domain names | 5,948 | (5,596) | 352 | 0.0 | |||||||||||||||||||
Trade names | 2,823 | (2,823) | — | 0.0 | |||||||||||||||||||
Vendor relationships | 2,510 | (2,510) | — | 0.0 | |||||||||||||||||||
Patents | 975 | (945) | 30 | 0.8 | |||||||||||||||||||
Registered users | 420 | (420) | — | 0.0 | |||||||||||||||||||
$ | 132,750 | $ | (119,747) | $ | 13,003 | 1.5 |
December 31, 2020 | |||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Weighted Average Amortization Period (Years) | ||||||||||||||||||||
Media service rights | $ | 35,934 | $ | (25,688) | $ | 10,246 | 1.4 | ||||||||||||||||
Promotion service rights | 33,566 | (17,234) | 16,332 | 1.9 | |||||||||||||||||||
Developed technologies | 27,170 | (18,511) | 8,659 | 2.5 | |||||||||||||||||||
Customer relationships | 22,690 | (16,105) | 6,585 | 2.7 | |||||||||||||||||||
Data access rights | 10,801 | (8,420) | 2,381 | 1.0 | |||||||||||||||||||
Domain names | 5,948 | (5,596) | 352 | 0.0 | |||||||||||||||||||
Trade names | 2,823 | (2,546) | 277 | 0.6 | |||||||||||||||||||
Vendor relationships | 2,510 | (2,510) | — | 0.0 | |||||||||||||||||||
Patents | 975 | (909) | 66 | 1.8 | |||||||||||||||||||
Registered users | 420 | (420) | — | 0.0 | |||||||||||||||||||
$ | 142,837 | $ | (97,939) | $ | 44,898 | 2.0 |
Total | |||||
2022 | $ | 8,508 | |||
2023 | 3,583 | ||||
2024 | 559 | ||||
2025 | — | ||||
2026 | — | ||||
Thereafter | — | ||||
Total estimated amortization expense | $ | 12,650 |
December 31, 2021 | December 31, 2020 | ||||||||||
Principal | $ | 200,000 | $ | 200,000 | |||||||
Unamortized debt discount | (10,358) | (21,046) | |||||||||
Unamortized debt issuance costs | (856) | (1,786) | |||||||||
Net carrying amount of the liability component | $ | 188,786 | $ | 177,168 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Contractual interest expense | $ | 3,500 | $ | 3,500 | $ | 3,500 | |||||||||||
Amortization of debt discount | 10,689 | 10,086 | 9,518 | ||||||||||||||
Amortization of debt issuance costs | 929 | 925 | 921 | ||||||||||||||
Total interest expense related to the Notes | $ | 15,118 | $ | 14,511 | $ | 13,939 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Expected life (in years) | — | 6.02 | 6.02 - 6.08 | ||||||||||||||
Risk-free interest rate | — | % | 0.96% | 1.42% - 2.66% | |||||||||||||
Volatility | — | % | 50 | % | 50 | % | |||||||||||
Dividend yield | — | — | — |
Options Outstanding | RSUs Outstanding | ||||||||||||||||||||||||||||||||||||||||
Shares Available for Grant | Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in thousands) | Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 6,497,353 | 6,622,006 | $ | 12.12 | 5.96 | $ | 9,987 | 4,904,161 | 12.48 | ||||||||||||||||||||||||||||||||
Increase in shares authorized | 3,799,808 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Options granted | (2,799,855) | 2,799,855 | $ | 8.74 | — | — | — | — | |||||||||||||||||||||||||||||||||
Options exercised | — | (433,762) | $ | 5.39 | — | $ | 2,406 | — | — | ||||||||||||||||||||||||||||||||
Options canceled or expired | 387,658 | (387,658) | $ | 11.37 | — | — | — | — | |||||||||||||||||||||||||||||||||
RSUs granted | (4,015,504) | — | — | — | — | 4,015,504 | 9.49 | ||||||||||||||||||||||||||||||||||
RSUs released | — | — | — | — | — | (2,735,184) | 11.79 | ||||||||||||||||||||||||||||||||||
RSUs canceled or expired | 1,161,806 | — | — | — | — | (1,161,806) | 11.67 | ||||||||||||||||||||||||||||||||||
RSUs vested and withheld for taxes | 1,004,914 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 6,036,180 | 8,600,441 | $ | 11.40 | 5.16 | $ | 8,811 | 5,022,675 | 10.66 | ||||||||||||||||||||||||||||||||
Increase in shares authorized | 3,574,847 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Options granted | (1,150,178) | 1,150,178 | $ | 8.95 | — | — | — | — | |||||||||||||||||||||||||||||||||
Options exercised | — | (331,007) | $ | 8.20 | — | $ | 463 | — | — | ||||||||||||||||||||||||||||||||
Options canceled or expired | 1,259,391 | (1,259,391) | $ | 11.22 | — | — | — | — | |||||||||||||||||||||||||||||||||
RSUs granted | (3,340,532) | — | — | — | — | 3,340,532 | 8.33 | ||||||||||||||||||||||||||||||||||
RSUs released | — | — | — | — | — | (2,410,803) | 10.41 | ||||||||||||||||||||||||||||||||||
RSUs canceled or expired | 1,243,550 | — | — | — | — | (1,243,550) | 10.83 | ||||||||||||||||||||||||||||||||||
RSUs vested and withheld for taxes | 843,885 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 8,467,143 | 8,160,221 | $ | 11.21 | 5.03 | $ | 7,100 | 4,708,854 | 9.09 | ||||||||||||||||||||||||||||||||
Increase in shares authorized | 3,669,732 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Options granted | — | — | $ | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Options exercised | — | (1,245,453) | $ | 10.60 | — | $ | 3,777 | — | — | ||||||||||||||||||||||||||||||||
Options canceled or expired | 16,775 | (16,775) | $ | 10.53 | — | — | — | — | |||||||||||||||||||||||||||||||||
RSUs granted | (3,970,802) | — | — | — | — | 3,970,802 | 11.98 | ||||||||||||||||||||||||||||||||||
RSUs released | — | — | — | — | — | (1,939,752) | 9.85 | ||||||||||||||||||||||||||||||||||
RSUs canceled or expired | 1,358,865 | — | — | — | — | (1,358,865) | 9.75 | ||||||||||||||||||||||||||||||||||
RSUs vested and withheld for taxes | 626,348 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | 10,168,061 | 6,897,993 | $ | 11.32 | 4.89 | $ | 1,596 | 5,381,039 | 10.78 | ||||||||||||||||||||||||||||||||
Vested and exercisable as of December 31, 2021 | 5,537,204 | $ | 12.02 | 4.17 | $ | 1,557 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||
Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Term (Years) | Weighted Average Exercise Price | Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||||||||||
$3.70 - $7.34 | 1,667,201 | 5.45 | $ | 6.46 | 1,174,051 | $ | 6.09 | |||||||||||||||||||||||||
$8.51 - $8.66 | 1,585,678 | 4.10 | 8.60 | 1,415,704 | 8.59 | |||||||||||||||||||||||||||
$8.95 - $10.65 | 1,399,605 | 7.83 | 9.26 | 721,628 | 9.38 | |||||||||||||||||||||||||||
$11.60 - $16.25 | 1,445,509 | 3.93 | 14.34 | 1,425,821 | 14.36 | |||||||||||||||||||||||||||
$25.00 | 800,000 | 1.87 | $ | 25.00 | 800,000 | $ | 25.00 | |||||||||||||||||||||||||
6,897,993 | 5,537,204 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Expected life (in years) | 0.5 | 0.5 | 0.5 | ||||||||||||||
Risk-free interest rate | 0.03% - 0.12% | 0.12% - 1.59% | 1.59% - 2.50% | ||||||||||||||
Volatility | 60% - 75% | 55% - 60% | 35% - 55% | ||||||||||||||
Dividend yield | — | — | — |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cost of revenues | $ | 1,905 | $ | 1,743 | $ | 2,193 | |||||||||||
Sales and marketing | 5,012 | 5,311 | 6,812 | ||||||||||||||
Research and development | 3,876 | 3,831 | 4,804 | ||||||||||||||
General and administrative | 12,019 | 17,486 | 18,328 | ||||||||||||||
Total stock-based compensation expense | $ | 22,812 | $ | 28,371 | $ | 32,137 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Domestic | $ | 45,991 | $ | 44,237 | $ | 39,102 | |||||||||||
Foreign | (4,054) | 20,425 | (2,705) | ||||||||||||||
Total | $ | 41,937 | $ | 64,662 | $ | 36,397 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 436 | $ | 133 | $ | (14) | |||||||||||
State | 45 | 34 | 219 | ||||||||||||||
Foreign | 3,012 | 642 | 342 | ||||||||||||||
Total current income tax expense | 3,493 | 809 | 547 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 93 | 93 | 93 | ||||||||||||||
State | 114 | 10 | 39 | ||||||||||||||
Foreign | (69) | (193) | (19) | ||||||||||||||
Total deferred income tax expense (benefit) | 138 | (90) | 113 | ||||||||||||||
Total | $ | 3,631 | $ | 719 | $ | 660 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Federal tax | (21.00) | % | (21.00) | % | (21.00) | % | |||||||||||
State income tax, net of federal tax benefit | 0.38 | % | 0.07 | % | 0.70 | % | |||||||||||
Tax credits | (1.09) | % | (0.78) | % | (2.20) | % | |||||||||||
Stock-based compensation | 2.00 | % | 4.31 | % | 2.42 | % | |||||||||||
Foreign income taxes at other than U.S. rates | 9.65 | % | (2.15) | % | (0.92) | % | |||||||||||
Acquisition related costs | — | % | 0.02 | % | 0.43 | % | |||||||||||
Contingent consideration related to acquisitions | — | % | — | % | 2.35 | % | |||||||||||
162(m) | 2.35 | % | 1.39 | % | 3.73 | % | |||||||||||
GILTI Inclusion | 1.42 | % | — | % | 1.05 | % | |||||||||||
Other | 0.12 | % | 0.44 | % | 1.26 | % | |||||||||||
Valuation allowance, net | 14.82 | % | 18.81 | % | 13.96 | % | |||||||||||
Effective tax rate | 8.65 | % | 1.11 | % | 1.78 | % |
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Deferred tax assets: | |||||||||||
Credits and net operating loss carryforward | $ | 114,758 | $ | 116,119 | |||||||
Accrued compensation | 644 | 280 | |||||||||
Deferred revenues | 603 | 271 | |||||||||
Stock-based compensation | 4,571 | 5,638 | |||||||||
Property and equipment | 538 | 746 | |||||||||
Purchased intangible assets | 9,211 | 4,411 | |||||||||
Operating lease | 7,770 | 4,536 | |||||||||
Other deferred tax assets | 2,124 | 1,682 | |||||||||
Total deferred tax assets | 140,219 | 133,683 | |||||||||
Valuation allowance | (130,823) | (121,927) | |||||||||
Deferred tax liabilities: | |||||||||||
Basis difference on purchased intangible assets | 1,044 | 2,969 | |||||||||
Operating lease | 5,670 | 3,683 | |||||||||
Other deferred tax liabilities | 2,667 | 5,157 | |||||||||
Tax deductible goodwill | 2,006 | 1,800 | |||||||||
Total deferred tax liabilities | 11,387 | 13,609 | |||||||||
Net deferred tax liabilities | $ | (1,991) | $ | (1,853) |
2021 ($) | 2020 ($) | |||||||
Audit Fees (1) | 2,973,590 | 2,204,830 | ||||||
Audit-Related Fees | — | |||||||
Tax Fees (2) | 7,336 | — | ||||||
All Other Fees (3) | 2,000 | — | ||||||
TOTAL | 2,982,926 | 2,204,830 |
(1) | “ Audit fees |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Unrecognized tax benefit - beginning balance | $ | 9,260 | $ | 8,840 | $ | 8,217 | |||||||||||
Increases for tax positions taken in prior years | 317 | — | — | ||||||||||||||
Increases for tax positions taken in current year | 374 | 420 | 623 | ||||||||||||||
Unrecognized tax benefit - ending balance | $ | 9,951 | $ | 9,260 | $ | 8,840 |
(2) | “Tax fees” |
(3) | “ All Other Fees |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net loss | $ | (45,568) | $ | (65,381) | $ | (37,057) | |||||||||||
Weighted-average number of shares used to compute net loss per share, basic and diluted | 93,686 | 90,412 | 91,163 | ||||||||||||||
Net loss per share, basic and diluted | $ | (0.49) | $ | (0.72) | $ | (0.41) |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Stock options and ESPP | 6,956 | 8,229 | 8,642 | ||||||||||||||
Restricted stock units | 5,381 | 4,709 | 5,023 | ||||||||||||||
Shares related to convertible senior notes | 11,521 | 11,521 | 11,521 | ||||||||||||||
23,858 | 24,459 | 25,186 |
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cash paid for operating lease liabilities | $ | 4,808 | $ | 3,940 | ||||
Right-of-use assets obtained in exchange for lease obligations | 12,021 | 12,297 |
December 31, 2021 | December 31, 2020 | |||||||
Operating right-of-use assets reported as: | ||||||||
Operating lease right-of-use assets | $ | 23,874 | $ | 16,222 | ||||
Operating lease liabilities reported as: | ||||||||
Other current liabilities | $ | 4,935 | $ | 3,650 | ||||
Other non-current liabilities | 26,903 | 15,956 | ||||||
Total operating lease liabilities | $ | 31,838 | $ | 19,606 | ||||
Weighted average remaining lease term (in years) | 6.2 | 7.2 | ||||||
Weighted average discount rate | 5.0 | % | 5.8 | % |
Operating Leases | |||||
2022 | $ | 6,407 | |||
2023 | 6,899 | ||||
2024 | 6,239 | ||||
2025 | 4,774 | ||||
2026 | 3,344 | ||||
2027 and thereafter | 9,836 | ||||
Total lease payments | $ | 37,499 | |||
Less: Imputed Interest | (5,661) | ||||
Total | $ | 31,838 |
Item 15. | Exhibits, Financial Statement Schedules |
1. | Consolidated Financial Statements |
2. | Financial Statement Schedules |
3. | Exhibits |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed Herewith | ||||||||||||||||||||||||||||||||
3.1 | 10-K | 001-36331 | 3.1 | 3/11/2016 | ||||||||||||||||||||||||||||||||||
3.2 | 8-K | 001-36331 | 3.2 | 10/6/2015 | ||||||||||||||||||||||||||||||||||
3.3 | 8-A | 001-36331 | 3.1 | 11/12/2021 | ||||||||||||||||||||||||||||||||||
4.1 | S-1/A | 333-193692 | 4.1 | 2/25/2014 | ||||||||||||||||||||||||||||||||||
4.2 | S-1 | 333-193692 | 4.2 | 1/31/2014 | ||||||||||||||||||||||||||||||||||
4.3 | 8-K | 001-36331 | 4.1 | 11/17/2017 | ||||||||||||||||||||||||||||||||||
4.4 | 8-K | 001-36331 | 4.1 | 11/17/2017 | ||||||||||||||||||||||||||||||||||
4.5 | 8-A | 001-36331 | 4.1 | 11/12/2021 | ||||||||||||||||||||||||||||||||||
4.6 | X | |||||||||||||||||||||||||||||||||||||
10.1† | S-1/A | 333-193692 | 10.1 | 2/14/2014 | ||||||||||||||||||||||||||||||||||
10.2† | S-1 | 333-193692 | 10.2 | 1/31/2014 | ||||||||||||||||||||||||||||||||||
10.3† | S-1 | 333-193692 | 10.3 | 1/31/2014 | ||||||||||||||||||||||||||||||||||
10.4† | S-1 | 333-193692 | 10.4 | 1/31/2014 | ||||||||||||||||||||||||||||||||||
10.5† | 10-Q | 001-36331 | 10.6 | 11/8/2016 | ||||||||||||||||||||||||||||||||||
10.6† | 10-Q | 001-36331 | 10.1 | 11/3/2017 | ||||||||||||||||||||||||||||||||||
10.7† | 10-Q | 001-36331 | 10.7 | 11/8/2016 | ||||||||||||||||||||||||||||||||||
10.8† | 10-Q | 001-36331 | 10.8 | 11/8/2016 | ||||||||||||||||||||||||||||||||||
10.9† | 10-Q | 001-36331 | 10.1 | 11/9/2018 | ||||||||||||||||||||||||||||||||||
10.10† | 10-Q | 001-36331 | 10.2 | 11/3/2017 | ||||||||||||||||||||||||||||||||||
10.11† | 10-Q | 001-36331 | 10.3 | 11/3/2017 | ||||||||||||||||||||||||||||||||||
10.12† | 10-Q | 001-36331 | 10.1 | 5/5/2017 | ||||||||||||||||||||||||||||||||||
10.13† | S-1 | 333-193692 | 10.9 | 2/25/2014 | ||||||||||||||||||||||||||||||||||
10.14† | 10-Q | 001-36331 | 10.2 | 11/8/2019 | ||||||||||||||||||||||||||||||||||
10.15† | 10-K | 001-36331 | 10.2 | 3/2/2020 | ||||||||||||||||||||||||||||||||||
10.16† | 10-Q | 001-36331 | 10.2 | 5/10/2021 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed Herewith | ||||||||||||||||||||||||||||||||
10.17† | 10-Q | 001-36331 | 10.3 | 11/8/2016 | ||||||||||||||||||||||||||||||||||
10.18† | 10-Q | 001-36331 | 10.3 | 11/8/2019 | ||||||||||||||||||||||||||||||||||
10.19† | 10-K | 001-36331 | 10.26 | 3/2/2020 | ||||||||||||||||||||||||||||||||||
10.20† | 10-Q | 001-36331 | 10.3 | 5/10/2021 | ||||||||||||||||||||||||||||||||||
10.21† | 10-Q | 001-36331 | 10.4 | 5/10/2021 | ||||||||||||||||||||||||||||||||||
10.22† | 10-Q | 001-36331 | 10.3 | 8/9/2019 | ||||||||||||||||||||||||||||||||||
10.23 | S-1 | 333-193692 | 10.14 | 1/31/2014 | ||||||||||||||||||||||||||||||||||
10.24 | S-1 | 333-193692 | 10.15 | 1/31/2014 | ||||||||||||||||||||||||||||||||||
10.25 | 10-K | 001-36331 | 10.15 | 3/19/2015 | ||||||||||||||||||||||||||||||||||
10.26 | 10-Q | 001-36331 | 10.1 | 8/5/2020 | ||||||||||||||||||||||||||||||||||
10.27 | 10-Q | 001-36331 | 10.1 | 8/5/2020 | ||||||||||||||||||||||||||||||||||
10.28 | 8-K | 001-36331 | 10.1 | 2/10/2021 | ||||||||||||||||||||||||||||||||||
10.29 | 8-K | 001-36331 | 10.1 | 11/17/2017 | ||||||||||||||||||||||||||||||||||
10.30 | 8-K | 001-36331 | 10.1 | 11/17/2021 | ||||||||||||||||||||||||||||||||||
21.1 | X | |||||||||||||||||||||||||||||||||||||
23.1 | X | |||||||||||||||||||||||||||||||||||||
24.1 | X | |||||||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X |
Number | Date | Herewith | ||||||||||||||||||||||||||||||||||||
† | ||||||||||||||||||||||||||||||||||||||
Indicates a management contract or compensatory plan or arrangement. |
* | The certifications attached as Exhibit 32.1 and 32.2 that 10-K are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Quotient under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of 10-K, irrespective of any general incorporation language contained in such filing. |
Quotient Technology Inc. | ||||||||
By: | |||||||||||||||||
/s/ Steven Boal | |||||||||||||||||
Steven Boal | |||||||||||||||||
Chief Executive Officer | |||||||||||||||||