Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35940 | |
Entity Registrant Name | CHANNELADVISOR CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-2257867 | |
Entity Address, Address Line One | 3025 Carrington Mill Boulevard | |
Entity Address, City or Town | Morrisville | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27560 | |
City Area Code | 919 | |
Local Phone Number | 228-4700 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | ECOM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 29,833,225 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001169652 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 90,351 | $ 71,545 |
Accounts receivable, net of allowance of $407 and $417 as of June 30, 2021 and December 31, 2020, respectively | 25,261 | 24,705 |
Prepaid expenses and other current assets | 15,209 | 13,874 |
Total current assets | 130,821 | 110,124 |
Operating lease right of use assets | 6,302 | 8,141 |
Property and equipment, net | 7,898 | 8,707 |
Goodwill | 30,990 | 30,990 |
Intangible assets, net | 3,585 | 4,155 |
Deferred contract costs, net of current portion | 16,291 | 14,040 |
Long-term deferred tax assets, net | 4,426 | 3,551 |
Other assets | 886 | 953 |
Total assets | 201,199 | 180,661 |
Current liabilities: | ||
Accounts payable | 818 | 158 |
Accrued expenses | 15,837 | 14,008 |
Deferred revenue | 27,040 | 22,819 |
Other current liabilities | 5,717 | 6,029 |
Total current liabilities | 49,412 | 43,014 |
Long-term operating leases, net of current portion | 2,944 | 5,394 |
Other long-term liabilities | 1,688 | 2,162 |
Total liabilities | 54,044 | 50,570 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of June 30, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.001 par value, 100,000,000 shares authorized, 29,830,607 and 29,020,424 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 30 | 29 |
Additional paid-in capital | 295,950 | 288,842 |
Accumulated other comprehensive loss | (1,157) | (1,095) |
Accumulated deficit | (147,668) | (157,685) |
Total stockholders' equity | 147,155 | 130,091 |
Total liabilities and stockholders' equity | $ 201,199 | $ 180,661 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Allowance for doubtful accounts receivable, current | $ 407 | $ 417 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 29,830,607 | 29,020,424 |
Common stock, shares outstanding (in shares) | 29,830,607 | 29,020,424 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 41,543 | $ 37,443 | $ 80,709 | $ 69,475 |
Cost of revenue | 9,533 | 7,053 | 17,941 | 14,116 |
Gross profit | 32,010 | 30,390 | 62,768 | 55,359 |
Operating expenses: | ||||
Sales and marketing | 15,159 | 12,619 | 29,791 | 24,959 |
Research and development | 5,908 | 4,543 | 11,435 | 9,344 |
General and administrative | 6,835 | 6,033 | 11,717 | 11,768 |
Total operating expenses | 27,902 | 23,195 | 52,943 | 46,071 |
Income from operations | 4,108 | 7,195 | 9,825 | 9,288 |
Other (expense) income: | ||||
Interest (expense) income, net | (33) | 85 | (66) | 211 |
Other (expense) income, net | (5) | 31 | (135) | 39 |
Total other (expense) income | (38) | 116 | (201) | 250 |
Income before income taxes | 4,070 | 7,311 | 9,624 | 9,538 |
Income tax (benefit) expense | (490) | 325 | (393) | 545 |
Net income | $ 4,560 | $ 6,986 | $ 10,017 | $ 8,993 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.15 | $ 0.25 | $ 0.34 | $ 0.32 |
Diluted (in dollars per share) | $ 0.15 | $ 0.24 | $ 0.32 | $ 0.31 |
Weighted average common shares outstanding: | ||||
Basic | 29,764,013 | 28,489,086 | 29,530,369 | 28,325,426 |
Diluted | 31,402,695 | 29,700,524 | 31,269,427 | 29,362,886 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,560 | $ 6,986 | $ 10,017 | $ 8,993 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 88 | 299 | (62) | (501) |
Total comprehensive income | $ 4,648 | $ 7,285 | $ 9,955 | $ 8,492 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 10,017 | $ 8,993 |
Adjustments to reconcile net income to cash and cash equivalents provided by operating activities: | ||
Depreciation and amortization | 3,479 | 3,000 |
Bad debt expense | 47 | 504 |
Stock-based compensation expense | 6,624 | 5,470 |
Deferred income taxes | (893) | 532 |
Other items, net | (1,760) | (420) |
Changes in assets and liabilities: | ||
Accounts receivable | (527) | (2,426) |
Prepaid expenses and other assets | (318) | (850) |
Deferred contract costs | (3,282) | (901) |
Accounts payable and accrued expenses | (249) | 1,177 |
Deferred revenue | 4,448 | (1,623) |
Cash and cash equivalents provided by operating activities | 17,586 | 13,456 |
Cash flows from investing activities | ||
Purchases of property and equipment | (494) | (580) |
Payment of software development costs | (1,631) | (1,407) |
Cash and cash equivalents used in investing activities | (2,125) | (1,987) |
Cash flows from financing activities | ||
Repayment of finance leases | (8) | (1,415) |
Proceeds from exercise of stock options | 3,722 | 2,134 |
Payment of statutory tax withholding related to net-share settlement of restricted stock units | (342) | 0 |
Cash and cash equivalents provided by financing activities | 3,372 | 719 |
Effect of currency exchange rate changes on cash and cash equivalents | (27) | (98) |
Net increase in cash and cash equivalents | 18,806 | 12,090 |
Cash and cash equivalents, beginning of period | 71,545 | 51,785 |
Cash and cash equivalents, end of period | 90,351 | 63,875 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 36 | 105 |
Cash paid for income taxes, net | 338 | 163 |
Supplemental disclosure of noncash investing and financing activities | ||
Accrued statutory tax withholding related to net-share settlement of restricted stock units | 2,896 | 1,639 |
Accrued capital expenditures | $ 16 | $ 203 |
Description of the Business
Description of the Business | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS | DESCRIPTION OF THE BUSINESSChannelAdvisor Corporation ("ChannelAdvisor" or the "Company") was incorporated in the state of Delaware and capitalized in June 2001. The Company began operations in July 2001. ChannelAdvisor is a leading multichannel commerce platform whose mission is to connect and optimize the world's commerce. For over two decades, ChannelAdvisor has helped brands and retailers worldwide improve their online performance by expanding sales channels, connecting with consumers across the entire buying cycle, optimizing their operations for peak performance and providing actionable analytics to improve competitiveness. Thousands of customers depend on ChannelAdvisor to securely power their e-commerce operations on hundreds of channels, including Amazon, eBay, Facebook, Google and Walmart. The Company is headquartered in Morrisville, North Carolina and maintains sales, service, support and research and development offices in various domestic and international locations. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Interim Condensed Consolidated Financial Information The accompanying condensed consolidated financial statements and footnotes have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of financial position, the results of operations, comprehensive loss and cash flows. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results for the full year or the results for any future periods, especially in light of the ongoing impacts, and potential future effects of, the COVID-19 pandemic on the Company’s business, operations and financial performance. These unaudited interim financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2020, or fiscal 2020, which are included in the Company's Annual Report on Form 10-K for fiscal 2020. There have been no material changes to the Company's significant accounting policies from those described in the footnotes to the audited financial statements contained in the Company's Annual Report on Form 10-K for fiscal 2020. Recent Accounting Pronouncements The Company has reviewed new accounting pronouncements that were issued during the six months ended June 30, 2021 and does not believe that these pronouncements are applicable to the Company, or that they will have a material impact on its financial position or results of operations. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to the accounts receivable allowance, the useful lives of long-lived assets and other intangible assets, income taxes, assumptions used for purposes of determining stock-based compensation, leases, including estimating lease terms and extensions, and revenue recognition, including standalone selling prices for contracts with multiple performance obligations and the expected period of benefit for deferred contract costs, among others. Estimates and assumptions are also required to value assets acquired and liabilities assumed as well as contingent consideration, where applicable, in conjunction with business combinations. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY The following tables summarize quarterly stockholders' equity activity for the six-month periods ended June 30, 2021 and 2020 (in thousands, except number of shares): Quarterly Activity For The Six Months Ended June 30, 2021 Common Stock Additional Accumulated Accumulated Total Shares Amount Balance, December 31, 2020 29,020,424 $ 29 $ 288,842 $ (1,095) $ (157,685) $ 130,091 Exercise of stock options and vesting of restricted stock units 802,270 1 3,586 — — 3,587 Stock-based compensation expense — — 3,048 — — 3,048 Statutory tax withholding related to net-share settlement of restricted stock units (89,842) — (2,061) — — (2,061) Net income — — — — 5,457 5,457 Foreign currency translation adjustments — — — (150) — (150) Balance, March 31, 2021 29,732,852 30 293,415 (1,245) (152,228) 139,972 Exercise of stock options and vesting of restricted stock units 146,164 — 136 — — 136 Stock-based compensation expense — — 3,576 — — 3,576 Statutory tax withholding related to net-share settlement of restricted stock units (48,409) — (1,177) — — (1,177) Net income — — — — 4,560 4,560 Foreign currency translation adjustments — — — 88 — 88 Balance, June 30, 2021 29,830,607 $ 30 $ 295,950 $ (1,157) $ (147,668) $ 147,155 Quarterly Activity For The Six Months Ended June 30, 2020 Common Stock Additional Accumulated Accumulated Total Shares Amount Balance, December 31, 2019 28,077,469 $ 28 $ 278,111 $ (1,740) $ (176,750) $ 99,649 Cumulative effect of accounting change (1) — — — — 240 240 Exercise of stock options and vesting of restricted stock units 394,998 — 87 — — 87 Stock-based compensation expense — — 2,914 — — 2,914 Statutory tax withholding related to net-share settlement of restricted stock units (107,398) — (980) — — (980) Net income — — — — 2,007 2,007 Foreign currency translation adjustments — — — (800) — (800) Balance, March 31, 2020 28,365,069 28 280,132 (2,540) (174,503) 103,117 Exercise of stock options and vesting of restricted stock units 330,692 1 2,046 — — 2,047 Stock-based compensation expense — — 2,556 — — 2,556 Statutory tax withholding related to net-share settlement of restricted stock units (48,675) — (659) — — (659) Net income — — — — 6,986 6,986 Foreign currency translation adjustments — — — 299 — 299 Balance, June 30, 2020 28,647,086 $ 29 $ 284,075 $ (2,241) $ (167,517) $ 114,346 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The Company has acquired intangible assets in connection with its business acquisitions. These assets were recorded at their estimated fair values at the acquisition date and are being amortized over their respective estimated useful lives using the straight-line method. The estimated useful lives and amortization methodology used in computing amortization are as follows: Estimated Useful Life Amortization Methodology Customer relationships 7 years Straight-line Acquired technology 7 years Straight-line Amortization expense associated with the Company's intangible assets was $0.3 million and $0.2 million for the three months ended June 30, 2021 and 2020, respectively, and $0.6 million and $0.3 million for the six months ended June 30, 2021 and 2020, respectively. There were no changes to the Company's goodwill during the six months ended June 30, 2021. |
Fair Value of Measurements
Fair Value of Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Measurements | FAIR VALUE OF MEASUREMENTS The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: • Level 1. Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs for which there is little or no market data, which require the Company to develop its own assumptions. The carrying amounts of certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their respective fair values due to their short-term nature. The acquisition of Blueboard, a private limited company organized under the laws of France ("BlueBoard"), on July 23, 2020 included a contingent consideration arrangement that allows for payments of up to $3.0 million based upon the achievement of specified annual revenue targets through July 2023. Contingent consideration was measured at fair value at the acquisition date and is remeasured at fair value at each reporting date until the contingency is resolved. The fair value of the contingent consideration related to the BlueBoard acquisition was estimated utilizing Black-Scholes option pricing models in which various scenarios for achievement of the financial targets and resulting payouts are then discounted to determine the present value of the resulting liability. Key assumptions used in the measurement of fair value of contingent consideration include the forecasted revenue growth, revenue volatility and discount rates among other assumptions. Changes in any valuation inputs in isolation may result in a significantly lower or higher fair value measurement in the future. The fair value of the contingent consideration is recorded in "Other long-term liabilities" on the Company's consolidated balance sheet. Changes in the fair value of contingent consideration are recognized within general and administrative expenses in the Company’s consolidated statements of operations. The following table presents the changes to the Company's liability for acquisition-related contingent consideration for the six months ended June 30, 2021 (in thousands): Balance as of December 31, 2020 $ 1,330 Change in fair value (1,325) Balance as of June 30, 2021 $ 5 |
Capitalized Software Developmen
Capitalized Software Development Costs | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
CAPITALIZED SOFTWARE DEVELOPMENT COSTS | CAPITALIZED SOFTWARE DEVELOPMENT COSTSCapitalized software development costs related to creating internally developed software and implementing software purchased for internal use are included in property and equipment in the accompanying condensed consolidated balance sheets. The Company capitalized software development costs of $0.9 million and $0.7 million during the three months ended June 30, 2021 and 2020, respectively, and $1.6 million and $1.4 million during the six months ended June 30, 2021 and 2020, respectively. Amortization expense related to capitalized internally developed software was $0.7 million and $0.4 million for the three months ended June 30, 2021 and 2020, respectively, and $1.3 million and $0.8 million for the six months ended June 30, 2021 and 2020, respectively, and is included in cost of revenue or general and administrative expense in the accompanying condensed consolidated statements of operations, depending upon the nature of the software development project. The net book value of capitalized internally developed software was $4.5 million and $4.2 million at June 30, 2021 and December 31, 2020, respectively. |
Line of Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Line of Credit | LINE OF CREDITOn August 5, 2020, the Company established a $25.0 million revolving credit facility with a commercial lender that is available for use until August 5, 2023. Proceeds from borrowings under the credit facility may be used for working capital and general corporate purposes, including acquisitions. Up to $10.0 million of the facility is available for letters of credit. Additionally, the Company may request increases to the facility, subject to the consent of the lender, provided that the aggregate amount of such increases during the term do not exceed $10.0 million. Amounts borrowed under the facility will bear interest equal to either a base rate plus 2.25% per annum or LIBOR plus 3.25% per annum. The Company will pay a fee on all outstanding letters of credit at a rate of 3.25% per annum. In addition, the Company will pay a quarterly fee at a rate of 0.50% per annum on the undrawn portion of the facility. As collateral for extension of credit under the facility, the Company granted security interests in substantially all of its assets and those of one of its subsidiaries. The agreement for the credit facility contains customary representations and warranties and subjects the Company to affirmative and negative covenants. As of June 30, 2021, the Company had not drawn on, or issued any letters of credit under, the credit facility. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition and Disaggregation of Revenue The Company derives the majority of its revenue from subscription fees paid for access to and usage of its SaaS solutions for a specified contract term. A customer typically pays a recurring subscription fee based on a specified minimum amount of gross merchandise value, or GMV, or advertising spend that the customer expects to process through the Company's platform. Subscription fees may also include implementation fees such as launch assistance and training fees. The remaining portion of a customer's fee is variable and is based on a specified percentage of GMV or advertising spend processed through the Company's platform in excess of the customer's specified minimum GMV or advertising spend amount. In most cases, the specified percentage of excess GMV or advertising spend on which the variable fee is based is fixed and does not vary depending on the amount of the excess. Subscription fees are billed in advance of the subscription term and are due in accordance with contract terms, which generally provide for payment within 30 days. Variable fees are subject to the same payment terms, although they are generally billed at the end of the period in which they are incurred. The Company also generates revenue from its solutions that allow brands to direct potential consumers from their websites and digital marketing campaigns to authorized resellers. The majority of the Company's contracts have a one year term. The Company's contractual arrangements include performance, termination and cancellation provisions, but do not provide for refunds. Customers do not have the contractual right to take possession of the Company's software at any time. Sales taxes collected from customers and remitted to government authorities are excluded from revenue. The Company's customers are categorized as follows: Retailers. The Company generally categorizes a customer as a retailer if it primarily focuses on selling third-party products. Brands. The Company generally categorizes a customer as a brand if it primarily focuses on selling its own proprietary products. Other. Other is primarily comprised of strategic partnerships. The following table summarizes revenue disaggregation by customer type for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Retailers $ 22,516 $ 23,273 $ 44,293 $ 42,988 Brands 15,956 11,494 30,205 21,780 Other 3,071 2,676 6,211 4,707 $ 41,543 $ 37,443 $ 80,709 $ 69,475 Contracts with Multiple Performance Obligations Customers may elect to purchase a subscription to multiple modules, multiple modules with multiple service levels, or, for certain of the Company's solutions, multiple brands or geographies. The Company evaluates such contracts to determine whether the services to be provided are distinct and accordingly should be accounted for as separate performance obligations. If the Company determines that a contract has multiple performance obligations, the transaction price, which is the total price of the contract, is allocated to each performance obligation based on a relative standalone selling price method. The Company estimates standalone selling price based on observable prices in past transactions for which the product offering subject to the performance obligation has been sold separately. As the performance obligations are satisfied, revenue is recognized as discussed above. Transaction Price Allocated to Future Performance Obligations As the Company typically enters into contracts with customers for a twelve-month subscription term, a substantial majority of its performance obligations that have not yet been satisfied as of June 30, 2021 are part of a contract that has an original expected duration of one year or less. For contracts with an original expected duration of greater than one year, the aggregate transaction price allocated to the unsatisfied performance obligations was $32.7 million as of June 30, 2021, of which $21.0 million is expected to be recognized as revenue over the next twelve months. Deferred Revenue Deferred revenue generally represents the unearned portion of subscription fees. Deferred revenue is recorded when fees are invoiced in advance of performance. Deferred amounts are generally recognized within one year. Deferred revenue is included in the accompanying condensed consolidated balance sheets under "Total current liabilities," net of any long-term portion that is included in "Other long-term liabilities." The following table summarizes deferred revenue activity for the six months ended June 30, 2021 (in thousands): Balance, beginning of period Net additions Revenue recognized from deferred revenue Balance, end of period Deferred revenue $ 23,301 66,808 (62,292) $ 27,817 Of the $80.7 million of revenue recognized in the six months ended June 30, 2021, $19.2 million was included in deferred revenue at January 1, 2021. Costs to Obtain Contracts The Company capitalizes sales commissions and a portion of other incentive compensation costs that are directly related to obtaining customer contracts and that would not have been incurred if the contract had not been obtained. These costs are included in the accompanying condensed consolidated balance sheets and are classified as "Prepaid expenses and other current assets," net of any long-term portion that is included in "Deferred contract costs, net of current portion." As of June 30, 2021, $8.3 million was included in "Prepaid expenses and other current assets." Deferred contract costs are amortized to sales and marketing expense over the expected period of benefit, which the Company has determined to be five years based on the estimated customer relationship period. The following table summarizes deferred contract cost activity for the six months ended June 30, 2021 (in thousands): Balance, beginning of period Additions Amortized costs (1) Balance, end of period Deferred contract costs $ 21,333 7,441 (4,189) $ 24,585 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In February 2020, the Company’s Compensation Committee implemented changes to the equity compensation program for the Company’s executive officers. Beginning in 2020, 50% of each executive's equity awards were granted in the form of performance-based vesting restricted stock units, or PSUs, that are eligible for vesting only if the Company achieves pre-defined targets set by the Compensation Committee for the Company’s combined year-over-year revenue growth and adjusted earnings before interest, tax, depreciation and amortization, or EBITDA, margin over a two-year measurement period, subject to the executive’s continued service with the Company. For any PSUs granted in 2020 to vest, revenue growth must be positive over the performance period. Vesting of the PSU awards is based on a sliding scale of actual performance against the pre-defined goals. The sliding scale ranges from zero vesting and forfeiture of the awards if the Company does not achieve the performance threshold, to an award of up to 150% and 200% of the target number of awards for fiscal 2020 and 2021 grants, respectively, if the pre-defined maximum performance is achieved. As soon as reasonably practicable after the completion of the performance period, the Compensation Committee will determine the level of attainment of the performance goal and if the performance threshold is achieved, on the second anniversary of the grant date, subject to the executive’s continued service as of that date, 50% of the earned PSU awards will vest and, on the third anniversary of the grant date, the remaining 50% of earned PSU awards will vest, subject to the executive’s continued service as of that date. The Committee may make adjustments to the manner in which the achievement is determined as it deems equitable and appropriate to exclude the effect of unusual, non-recurring or infrequent matters, transactions or events affecting the Company or its consolidated financial statements; changes in accounting principles, practices or policies or in tax laws or other laws or requirements; or other similar events, matters or changed circumstances. Each adjustment, if any, shall be made solely for the purpose of maintaining the intended economics of the award in light of changed circumstances to prevent the dilution or enlargement of the executive’s rights with respect to the PSUs. The fair value of the PSU awards is determined using the Company’s stock price on the grant date. These awards are equity classified and will be expensed over the requisite service period based on the extent to which achievement of the performance metrics is probable. The Company recognizes stock-based compensation expense using the accelerated attribution method, net of estimated forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. Stock-based compensation expense is included in the following line items in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 264 $ 238 $ 496 $ 557 Sales and marketing 996 777 1,816 1,517 Research and development 690 543 1,302 1,223 General and administrative 1,626 998 3,010 2,173 Total stock-based compensation expense $ 3,576 $ 2,556 $ 6,624 $ 5,470 During the six months ended June 30, 2021, the Company granted the following share-based awards: Number of Shares Underlying Grant Weighted Average Grant Date Fair Value Restricted stock units 449,506 $ 23.39 Performance stock units 71,932 $ 23.88 Total share-based awards 521,438 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET INCOME PER SHAREBasic net income per share is calculated by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is calculated giving effect to all potentially dilutive shares of common stock, including stock options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method. The following table summarizes the calculation of basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic: Net income $ 4,560 $ 6,986 $ 10,017 $ 8,993 Weighted average common shares outstanding, basic 29,764,013 28,489,086 29,530,369 28,325,426 Basic net income per share $ 0.15 $ 0.25 $ 0.34 $ 0.32 Diluted: Net income $ 4,560 $ 6,986 $ 10,017 $ 8,993 Weighted average common shares outstanding, basic 29,764,013 28,489,086 29,530,369 28,325,426 Dilutive effect of: Stock options 572,474 259,774 604,491 154,854 Unvested restricted stock units 1,066,208 951,664 1,134,567 882,606 Weighted average common shares outstanding, diluted 31,402,695 29,700,524 31,269,427 29,362,886 Diluted net income per share $ 0.15 $ 0.24 $ 0.32 $ 0.31 The following equity instruments have been excluded from the calculation of diluted net income per share because the effect is anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock options 22,229 603,838 22,541 1,329,915 Restricted stock units 20,796 25,783 20,852 17,878 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used to determine the income tax provision or benefit on a year-to-date basis and may change in subsequent interim periods. The Company's effective tax rate was (12.0)% and 4.4% for the three months ended June 30, 2021 and 2020, respectively, and (4.1)% and 5.7% for the six months ended June 30, 2021 and 2020, respectively. The tax benefit and expense for each of the periods was based on U.S. federal, state, local and foreign income taxes. The Company’s effective tax rate for these periods is lower than the U.S. federal statutory rate of 21% primarily due to the utilization of operating loss carryforwards which are subject to a valuation allowance. As a result of uncertainties relating to the timing and sufficiency of future taxable income in certain tax jurisdictions in which the Company operates, the Company cannot recognize the tax benefit of operating loss carryforwards generated in those jurisdictions until the operating loss carryforwards are utilized. The decrease in the effective tax rate for the three and six months ended June 30, 2021 compared with the same periods in the prior year was primarily due to the revaluation of the Company's UK deferred tax assets resulting from the enactment of an increase in the UK statutory tax rate, as well as an increase in U.S. state income tax benefits resulting from tax deductions from stock-based compensation. Additionally, the decrease was partially due to an increase in forecasted income for the year ending December 31, 2021 that is not expected to result in a corresponding increase to income tax expense due to the tax benefit recognized from the utilization of operating loss carryforwards that are offset by a valuation allowance. The American Rescue Plan Act, or ARP Act, was enacted on March 11, 2021. The ARP Act includes provisions on taxes, health care, unemployment benefits, direct payments, state and local funding and other issues. Included in the tax provisions was an expansion of the limitations on the deduction of excessive executive compensation. The Coronavirus, Aid, Relief and Economic Security Act, or CARES Act, was enacted on March 27, 2020. The CARES Act includes both income tax and non-income tax measures to assist companies. Some of the key income tax-related provisions of the CARES Act include the elimination of the 80% limitation on certain net operating loss carryforwards and allowing net operating loss carrybacks, an increase to the interest expense deduction limit, passage of technical corrections to the Tax Cuts and Jobs Act of 2017, and acceleration of the Alternative Minimum Tax Credit refund. In addition to the income tax provisions, the ARP Act and CARES Act include non-income tax provisions, such as loan programs, penalty and interest-free deferral of certain tax payments, and payroll tax credits. The Company has decided not to apply for any of the loan programs in either Act. The Company is currently benefiting from penalty and interest-free tax payment deferral of the 2020 U.S. Social Security tax payments as provided in the CARES Act. The Company is also monitoring COVID-19 tax relief developments in U.S. states and foreign jurisdictions where the Company has operations. The corporate tax changes in the ARP Act and CARES Act had an insignificant impact on the income tax provision for the three and six months ended June 30, 2021. The Company recorded a valuation allowance against all of its U.S. deferred tax assets as of June 30, 2021. The Company intends to continue maintaining a full valuation allowance on its U.S. deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the allowance. However, given its current earnings and anticipated future earnings, there is a reasonable possibility that within the next 12 months, sufficient positive evidence may become available to allow it to reach a conclusion that a portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the Company is currently unable to determine the exact timing and amount of the valuation allowance release. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, or CODM, for purposes of allocating resources and evaluating financial performance. The Company's CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, the Company's operations constitute a single operating segment and one reportable segment. Substantially all assets were held in the United States during the six months ended June 30, 2021 and the year ended December 31, 2020. The Company categorizes domestic and international revenue from customers based on their billing address. The following table summarizes revenue by geography for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Domestic $ 29,471 $ 28,522 $ 57,982 $ 52,436 International 12,072 8,921 22,727 17,039 Total revenue $ 41,543 $ 37,443 $ 80,709 $ 69,475 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Interim Condensed Consolidated Financial Information | The accompanying condensed consolidated financial statements and footnotes have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of financial position, the results of operations, comprehensive loss and cash flows. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results for the full year or the results for any future periods, especially in light of the ongoing impacts, and potential future effects of, the COVID-19 pandemic on the Company’s business, operations and financial performance. These unaudited interim financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2020, or fiscal 2020, which are included in the Company's Annual Report on Form 10-K for fiscal 2020. There have been no material changes to the Company's significant accounting policies from those described in the footnotes to the audited financial statements contained in the Company's Annual Report on Form 10-K for fiscal 2020. |
Recent Accounting Pronouncements | The Company has reviewed new accounting pronouncements that were issued during the six months ended June 30, 2021 and does not believe that these pronouncements are applicable to the Company, or that they will have a material impact on its financial position or results of operations. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to the accounts receivable allowance, the useful lives of long-lived assets and other intangible assets, income taxes, assumptions used for purposes of determining stock-based compensation, leases, including estimating lease terms and extensions, and revenue recognition, including standalone selling prices for contracts with multiple performance obligations and the expected period of benefit for deferred contract costs, among others. Estimates and assumptions are also required to value assets acquired and liabilities assumed as well as contingent consideration, where applicable, in conjunction with business combinations. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities. |
Fair Value Measurement | The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: • Level 1. Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs for which there is little or no market data, which require the Company to develop its own assumptions. The carrying amounts of certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their respective fair values due to their short-term nature. |
Deferred Revenue | Deferred revenue generally represents the unearned portion of subscription fees. Deferred revenue is recorded when fees are invoiced in advance of performance. Deferred amounts are generally recognized within one year. Deferred revenue is included in the accompanying condensed consolidated balance sheets under "Total current liabilities," net of any long-term portion that is included in "Other long-term liabilities." |
Costs to Obtain Contracts | The Company capitalizes sales commissions and a portion of other incentive compensation costs that are directly related to obtaining customer contracts and that would not have been incurred if the contract had not been obtained. These costs are included in the accompanying condensed consolidated balance sheets and are classified as "Prepaid expenses and other current assets," net of any long-term portion that is included in "Deferred contract costs, net of current portion." As of June 30, 2021, $8.3 million was included in "Prepaid expenses and other current assets." Deferred contract costs are amortized to sales and marketing expense over the expected period of benefit, which the Company has determined to be five years based on the estimated customer relationship period. |
Stock-Based Compensation | The Company recognizes stock-based compensation expense using the accelerated attribution method, net of estimated forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. |
Earnings Per Share | Basic net income per share is calculated by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is calculated giving effect to all potentially dilutive shares of common stock, including stock options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method. |
Income Taxes | At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used to determine the income tax provision or benefit on a year-to-date basis and may change in subsequent interim periods. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Stockholders Equity | The following tables summarize quarterly stockholders' equity activity for the six-month periods ended June 30, 2021 and 2020 (in thousands, except number of shares): Quarterly Activity For The Six Months Ended June 30, 2021 Common Stock Additional Accumulated Accumulated Total Shares Amount Balance, December 31, 2020 29,020,424 $ 29 $ 288,842 $ (1,095) $ (157,685) $ 130,091 Exercise of stock options and vesting of restricted stock units 802,270 1 3,586 — — 3,587 Stock-based compensation expense — — 3,048 — — 3,048 Statutory tax withholding related to net-share settlement of restricted stock units (89,842) — (2,061) — — (2,061) Net income — — — — 5,457 5,457 Foreign currency translation adjustments — — — (150) — (150) Balance, March 31, 2021 29,732,852 30 293,415 (1,245) (152,228) 139,972 Exercise of stock options and vesting of restricted stock units 146,164 — 136 — — 136 Stock-based compensation expense — — 3,576 — — 3,576 Statutory tax withholding related to net-share settlement of restricted stock units (48,409) — (1,177) — — (1,177) Net income — — — — 4,560 4,560 Foreign currency translation adjustments — — — 88 — 88 Balance, June 30, 2021 29,830,607 $ 30 $ 295,950 $ (1,157) $ (147,668) $ 147,155 Quarterly Activity For The Six Months Ended June 30, 2020 Common Stock Additional Accumulated Accumulated Total Shares Amount Balance, December 31, 2019 28,077,469 $ 28 $ 278,111 $ (1,740) $ (176,750) $ 99,649 Cumulative effect of accounting change (1) — — — — 240 240 Exercise of stock options and vesting of restricted stock units 394,998 — 87 — — 87 Stock-based compensation expense — — 2,914 — — 2,914 Statutory tax withholding related to net-share settlement of restricted stock units (107,398) — (980) — — (980) Net income — — — — 2,007 2,007 Foreign currency translation adjustments — — — (800) — (800) Balance, March 31, 2020 28,365,069 28 280,132 (2,540) (174,503) 103,117 Exercise of stock options and vesting of restricted stock units 330,692 1 2,046 — — 2,047 Stock-based compensation expense — — 2,556 — — 2,556 Statutory tax withholding related to net-share settlement of restricted stock units (48,675) — (659) — — (659) Net income — — — — 6,986 6,986 Foreign currency translation adjustments — — — 299 — 299 Balance, June 30, 2020 28,647,086 $ 29 $ 284,075 $ (2,241) $ (167,517) $ 114,346 (1) The Company recorded a reduction to accumulated deficit at January 1, 2020 as a result of its adoption of ASU 2016-13, Financial Instruments - Credit Losses . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The estimated useful lives and amortization methodology used in computing amortization are as follows: Estimated Useful Life Amortization Methodology Customer relationships 7 years Straight-line Acquired technology 7 years Straight-line |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Business Acquisition Contingent Consideration | The following table presents the changes to the Company's liability for acquisition-related contingent consideration for the six months ended June 30, 2021 (in thousands): Balance as of December 31, 2020 $ 1,330 Change in fair value (1,325) Balance as of June 30, 2021 $ 5 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue disaggregation by customer type for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Retailers $ 22,516 $ 23,273 $ 44,293 $ 42,988 Brands 15,956 11,494 30,205 21,780 Other 3,071 2,676 6,211 4,707 $ 41,543 $ 37,443 $ 80,709 $ 69,475 |
Deferred Revenue | The following table summarizes deferred revenue activity for the six months ended June 30, 2021 (in thousands): Balance, beginning of period Net additions Revenue recognized from deferred revenue Balance, end of period Deferred revenue $ 23,301 66,808 (62,292) $ 27,817 |
Deferred Contract Costs | The following table summarizes deferred contract cost activity for the six months ended June 30, 2021 (in thousands): Balance, beginning of period Additions Amortized costs (1) Balance, end of period Deferred contract costs $ 21,333 7,441 (4,189) $ 24,585 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense is included in the following line items in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 264 $ 238 $ 496 $ 557 Sales and marketing 996 777 1,816 1,517 Research and development 690 543 1,302 1,223 General and administrative 1,626 998 3,010 2,173 Total stock-based compensation expense $ 3,576 $ 2,556 $ 6,624 $ 5,470 |
Summary of Awards Granted in Period | During the six months ended June 30, 2021, the Company granted the following share-based awards: Number of Shares Underlying Grant Weighted Average Grant Date Fair Value Restricted stock units 449,506 $ 23.39 Performance stock units 71,932 $ 23.88 Total share-based awards 521,438 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the calculation of basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic: Net income $ 4,560 $ 6,986 $ 10,017 $ 8,993 Weighted average common shares outstanding, basic 29,764,013 28,489,086 29,530,369 28,325,426 Basic net income per share $ 0.15 $ 0.25 $ 0.34 $ 0.32 Diluted: Net income $ 4,560 $ 6,986 $ 10,017 $ 8,993 Weighted average common shares outstanding, basic 29,764,013 28,489,086 29,530,369 28,325,426 Dilutive effect of: Stock options 572,474 259,774 604,491 154,854 Unvested restricted stock units 1,066,208 951,664 1,134,567 882,606 Weighted average common shares outstanding, diluted 31,402,695 29,700,524 31,269,427 29,362,886 Diluted net income per share $ 0.15 $ 0.24 $ 0.32 $ 0.31 |
Schedule of Securities Excluded from Calculation of Weighted Average Common Shares Outstanding | The following equity instruments have been excluded from the calculation of diluted net income per share because the effect is anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock options 22,229 603,838 22,541 1,329,915 Restricted stock units 20,796 25,783 20,852 17,878 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geography | The following table summarizes revenue by geography for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Domestic $ 29,471 $ 28,522 $ 57,982 $ 52,436 International 12,072 8,921 22,727 17,039 Total revenue $ 41,543 $ 37,443 $ 80,709 $ 69,475 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | $ 139,972 | $ 130,091 | $ 103,117 | $ 99,649 | $ 130,091 | $ 99,649 | |
Exercise of stock options and vesting of restricted stock units | 136 | 3,587 | 2,047 | 87 | |||
Stock-based compensation expense | 3,576 | 3,048 | 2,556 | 2,914 | |||
Statutory tax withholding related to net-share settlement of restricted stock units | (1,177) | (2,061) | (659) | (980) | |||
Net income | 4,560 | 5,457 | 6,986 | 2,007 | 10,017 | 8,993 | |
Foreign currency translation adjustments | 88 | (150) | 299 | (800) | (62) | (501) | |
Ending balance | 147,155 | $ 139,972 | $ 114,346 | $ 103,117 | 147,155 | 114,346 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Accumulated deficit | $ (147,668) | $ (147,668) | $ (157,685) | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | $ 240 | $ 240 | |||||
Common Stock | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | 29,732,852 | 29,020,424 | 28,365,069 | 28,077,469 | 29,020,424 | 28,077,469 | |
Beginning balance | $ 30 | $ 29 | $ 28 | $ 28 | $ 29 | $ 28 | |
Exercise of stock options and vesting of restricted stock units (in shares) | 146,164 | 802,270 | 330,692 | 394,998 | |||
Exercise of stock options and vesting of restricted stock units | $ 0 | $ 1 | $ 1 | $ 0 | |||
Statutory tax withholding related to net-share settlement of restricted stock units (in shares) | (48,409) | (89,842) | (48,675) | (107,398) | |||
Ending balance (in shares) | 29,830,607 | 29,732,852 | 28,647,086 | 28,365,069 | 29,830,607 | 28,647,086 | 29,020,424 |
Ending balance | $ 30 | $ 30 | $ 29 | $ 28 | $ 30 | $ 29 | |
Additional Paid-in Capital | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 293,415 | 288,842 | 280,132 | 278,111 | 288,842 | 278,111 | |
Exercise of stock options and vesting of restricted stock units | 136 | 3,586 | 2,046 | 87 | |||
Stock-based compensation expense | 3,576 | 3,048 | 2,556 | 2,914 | |||
Statutory tax withholding related to net-share settlement of restricted stock units | (1,177) | (2,061) | (659) | (980) | |||
Ending balance | 295,950 | 293,415 | 284,075 | 280,132 | 295,950 | 284,075 | |
Accumulated Other Comprehensive Loss | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (1,245) | (1,095) | (2,540) | (1,740) | (1,095) | (1,740) | |
Foreign currency translation adjustments | 88 | (150) | 299 | (800) | |||
Ending balance | (1,157) | (1,245) | (2,241) | (2,540) | (1,157) | (2,241) | |
Accumulated Deficit | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (152,228) | (157,685) | (174,503) | (176,750) | (157,685) | (176,750) | |
Net income | 4,560 | 5,457 | 6,986 | 2,007 | |||
Ending balance | $ (147,668) | $ (152,228) | $ (167,517) | $ (174,503) | $ (147,668) | $ (167,517) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Estimated Useful Lives and Amortization Methodology (Detail) | 6 Months Ended |
Jun. 30, 2021 | |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of intangible asset (in years) | 7 years |
Acquired technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of intangible asset (in years) | 7 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill and Intangible Assets Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Change in goodwill | $ 0 | |||
Amortization expense | $ 0.3 | $ 0.2 | $ 0.6 | $ 0.3 |
Fair Value of Measurements - Na
Fair Value of Measurements - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Business Acquisition [Line Items] | |
Balance as of December 31, 2020 | $ 1,330 |
Change in fair value | (1,325) |
Balance as of June 30, 2021 | 5 |
BlueBoard | |
Business Acquisition [Line Items] | |
Contingent consideration (up to) | $ 3,000 |
Capitalized Software Developm_2
Capitalized Software Development Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||||
Capitalized software development costs | $ 900,000 | $ 700,000 | $ 1,600,000 | $ 1,400,000 | |
Capitalized software development costs amortization | 700,000 | $ 400,000 | 1,300,000 | $ 800,000 | |
Capitalized software development costs, net | $ 4,500,000 | $ 4,500,000 | $ 4,200,000 |
Line of Credit - Narrative (Det
Line of Credit - Narrative (Details) - Line of Credit - 2020 Revolving Credit Facility | Aug. 05, 2020USD ($) |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 25,000,000 |
Maximum increase allowed during term | $ 10,000,000 |
Line of credit facility, unused capacity, commitment fee percentage | 0.50% |
Revolving Credit Facility | Base Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 2.25% |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 3.25% |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 10,000,000 |
Outstanding letters of credit interest rate | 3.25% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 41,543 | $ 37,443 | $ 80,709 | $ 69,475 |
Retailers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,516 | 23,273 | 44,293 | 42,988 |
Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 15,956 | 11,494 | 30,205 | 21,780 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,071 | $ 2,676 | $ 6,211 | $ 4,707 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract period | 12 months | ||
Payment period | 30 days | ||
Revenue | $ 80,700 | ||
Deferred contract costs, current | $ 8,300 | ||
Capitalized contract cost, amortization period | 5 years | ||
Deferred revenue | $ 27,040 | $ 19,200 | $ 22,819 |
Marketplaces and Digital Marketing [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract period | 1 year |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Transaction Price Allocated to Future Performance Obligations (Detail) $ in Millions | Jun. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 32.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 21 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | 12 months |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Deferred Revenue (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Deferred revenue | |
Balance, beginning of period | $ 23,301 |
Net additions | 66,808 |
Revenue recognized from deferred revenue | (62,292) |
Balance, end of period | $ 27,817 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Costs to Obtain Contracts (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Deferred contract costs | |
Balance, beginning of period | $ 21,333 |
Additions | 7,441 |
Amortized costs | (4,189) |
Balance, end of period | $ 24,585 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent Of Executive Office Equity Awards Granted As Performance-Based Vesting Restricted Stock Units | 50.00% |
Performance Shares [Member] | Share-based Payment Arrangement, Tranche One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
Performance Shares [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
Performance Shares [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% |
Performance Shares, 2020 Fiscal Year Grants | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% |
Performance Shares, 2021 Fiscal Year Grants | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | $ 3,576 | $ 2,556 | $ 6,624 | $ 5,470 |
Cost of revenue | ||||
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | 264 | 238 | 496 | 557 |
Sales and marketing | ||||
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | 996 | 777 | 1,816 | 1,517 |
Research and development | ||||
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | 690 | 543 | 1,302 | 1,223 |
General and administrative | ||||
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | $ 1,626 | $ 998 | $ 3,010 | $ 2,173 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grants in Period (Detail) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Shares Underlying Grant | |
Total share-based awards (in shares) | 521,438 |
Restricted stock units | |
Number of Shares Underlying Grant | |
Restricted stock units (RSUs) (in shares) | 449,506 |
Weighted Average Grant Date Fair Value | |
Restricted stock units (RSUs) (in dollars per share) | $ / shares | $ 23.39 |
Performance Shares [Member] | |
Number of Shares Underlying Grant | |
Restricted stock units (RSUs) (in shares) | 71,932 |
Weighted Average Grant Date Fair Value | |
Restricted stock units (RSUs) (in dollars per share) | $ / shares | $ 23.88 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Net income | $ 4,560 | $ 5,457 | $ 6,986 | $ 2,007 | $ 10,017 | $ 8,993 |
Weighted average common shares outstanding, basic | 29,764,013 | 28,489,086 | 29,530,369 | 28,325,426 | ||
Basic net income (loss) per share (in dollars per share) | $ 0.15 | $ 0.25 | $ 0.34 | $ 0.32 | ||
Weighted average common shares outstanding, diluted (in shares) | 31,402,695 | 29,700,524 | 31,269,427 | 29,362,886 | ||
Diluted net income (loss) per share (in dollars per share) | $ 0.15 | $ 0.24 | $ 0.32 | $ 0.31 | ||
Stock options | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect (in shares) | 572,474 | 259,774 | 604,491 | 154,854 | ||
Restricted stock units | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect (in shares) | 1,066,208 | 951,664 | 1,134,567 | 882,606 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Antidilutive Equity Instruments (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of weighted average common shares outstanding (in shares) | 22,229 | 603,838 | 22,541 | 1,329,915 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of weighted average common shares outstanding (in shares) | 20,796 | 25,783 | 20,852 | 17,878 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | (12.00%) | 4.40% | (4.10%) | 5.70% |
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Number of operating segment | 1 |
Segment and Geographic Inform_4
Segment and Geographic Information - Summary of Revenue by Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 41,543 | $ 37,443 | $ 80,709 | $ 69,475 |
Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 29,471 | 28,522 | 57,982 | 52,436 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 12,072 | $ 8,921 | $ 22,727 | $ 17,039 |