ServiceSource International (SREV) 10-Q 28 Jul 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Entity File Number	001-35108
Entity Registrant Name	SERVICESOURCE INTERNATIONAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-0578975
Entity Address, Address Line One	707 17th Street, 25th Floor
Entity Address, City or Town	Denver,
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	720
Local Phone Number	889-8500
Title of 12(b) Security	Common Stock, $0.0001 Par Value
Trading Symbol	SREV
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Small Business	true
Emerging Growth Company	false
Entity Shell Company	false
Entity Common stock, shares outstanding		97,875,744
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001310114
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 32,464	$ 34,006
Accounts receivable, net	34,596	38,890
Prepaid expenses and other	7,403	9,275
Total current assets	74,463	82,171
Property and equipment, net	24,583	29,948
ROU assets	25,290	29,798
Contract acquisition costs	675	872
Goodwill	6,334	6,334
Other assets	4,184	3,490
Total assets	135,529	152,613
Current liabilities:
Accounts payable	2,246	1,204
Accrued expenses	2,568	3,217
Accrued compensation and benefits	16,129	18,342
Revolver	15,000	15,000
Operating lease liabilities	10,008	10,797
Other current liabilities	1,015	1,209
Total current liabilities	46,966	49,769
Operating lease liabilities, net of current portion	21,408	25,975
Other long-term liabilities	1,742	1,593
Total liabilities	70,116	77,337
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, $0.0001 par value; 20,000 shares authorized and none issued and outstanding
Common stock, $0.0001 par value; 1,000,000 shares authorized; 97,959 shares issued and 97,838 shares outstanding as of June 30, 2021; 97,248 shares issued and 97,127 shares outstanding as of December 31, 2020	10	10
Treasury stock	(441)	(441)
Additional paid-in capital	383,403	379,696
Accumulated deficit	(318,533)	(304,607)
Accumulated other comprehensive income	974	618
Total stockholders' equity	65,413	75,276
Total liabilities and stockholders' equity	$ 135,529	$ 152,613

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	97,959,000	97,248,000
Common stock, shares outstanding (in shares)	97,838,000	97,127,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Consolidated Statements of Operations
Net revenue	$ 46,307	$ 47,638	$ 91,330	$ 97,752
Cost of revenue	35,395	34,645	69,462	70,205
Gross profit	10,912	12,993	21,868	27,547
Operating expenses:
Sales and marketing	4,059	6,142	8,089	13,410
Research and development	1,181	1,516	2,341	2,697
General and administrative	10,624	10,619	22,814	21,307
Restructuring and other related costs	54	236	974	703
Total operating expenses	15,918	18,513	34,218	38,117
Loss from operations	(5,006)	(5,520)	(12,350)	(10,570)
Interest and other (expense) income, net	(364)	324	(1,524)	(550)
Loss before provision for income taxes	(5,370)	(5,196)	(13,874)	(11,120)
Provision for income tax benefit (expense)	279	(161)	(52)	(179)
Net loss	$ (5,091)	$ (5,357)	$ (13,926)	$ (11,299)
Net loss per common share:
Basic (in dollars per share)	$ (0.05)	$ (0.06)	$ (0.14)	$ (0.12)
Diluted (in dollars per share)	$ (0.05)	$ (0.06)	$ (0.14)	$ (0.12)
Weighted-average common shares outstanding:
Basic (in shares)	97,601	95,369	97,424	95,169
Diluted (in shares)	97,601	95,369	97,424	95,169

Consolidated Statements of Comp

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
Consolidated Statements of Comprehensive Loss
Net loss	$ (5,091)	$ (5,357)	$ (13,926)	$ (11,299)
Other comprehensive income (loss):
Foreign currency translation adjustments	31	(547)	356	(49)
Other comprehensive income (loss):	31	(547)	356	(49)
Comprehensive loss	$ (5,060)	$ (5,904)	$ (13,570)	$ (11,348)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury Shares/Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Beginning balance (in shares) at Dec. 31, 2019	94,972	(121)
Beginning balance at Dec. 31, 2019	$ 9	$ (441)	$ 374,525	$ (286,066)	$ 410	$ 88,437
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss				(5,942)		(5,942)
Other comprehensive income					498	498
Stock-based compensation			1,066			1,066
Issuance of common stock, RSUs (in shares)	178
Issuance of common stock, RSUs	$ 1		(1)
Proceeds from the exercise of stock options and ESPP (in shares)	112
Proceeds from the exercise of stock options and ESPP			76			76
Ending balance (in shares) at Mar. 31, 2020	95,262	(121)
Ending balance at Mar. 31, 2020	$ 10	$ (441)	375,666	(292,008)	908	84,135
Beginning balance (in shares) at Dec. 31, 2019	94,972	(121)
Beginning balance at Dec. 31, 2019	$ 9	$ (441)	374,525	(286,066)	410	88,437
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss						(11,299)
Other comprehensive income						(49)
Ending balance (in shares) at Jun. 30, 2020	95,700	(121)
Ending balance at Jun. 30, 2020	$ 10	$ (441)	376,944	(297,365)	361	79,509
Beginning balance (in shares) at Mar. 31, 2020	95,262	(121)
Beginning balance at Mar. 31, 2020	$ 10	$ (441)	375,666	(292,008)	908	84,135
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss				(5,357)		(5,357)
Other comprehensive income					(547)	(547)
Stock-based compensation			1,278			1,278
Issuance of common stock, RSUs (in shares)	438
Ending balance (in shares) at Jun. 30, 2020	95,700	(121)
Ending balance at Jun. 30, 2020	$ 10	$ (441)	376,944	(297,365)	361	79,509
Beginning balance (in shares) at Dec. 31, 2020	97,248	(121)
Beginning balance at Dec. 31, 2020	$ 10	$ (441)	379,696	(304,607)	618	75,276
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss				(8,835)		(8,835)
Other comprehensive income					325	325
Stock-based compensation			2,486			2,486
Issuance of common stock, RSUs (in shares)	73
Proceeds from the exercise of stock options and ESPP (in shares)	149
Proceeds from the exercise of stock options and ESPP			132			132
Ending balance (in shares) at Mar. 31, 2021	97,470	(121)
Ending balance at Mar. 31, 2021	$ 10	$ (441)	382,314	(313,442)	943	69,384
Beginning balance (in shares) at Dec. 31, 2020	97,248	(121)
Beginning balance at Dec. 31, 2020	$ 10	$ (441)	379,696	(304,607)	618	75,276
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss						(13,926)
Other comprehensive income						356
Ending balance (in shares) at Jun. 30, 2021	97,959	(121)
Ending balance at Jun. 30, 2021	$ 10	$ (441)	383,403	(318,533)	974	65,413
Beginning balance (in shares) at Mar. 31, 2021	97,470	(121)
Beginning balance at Mar. 31, 2021	$ 10	$ (441)	382,314	(313,442)	943	69,384
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss				(5,091)		(5,091)
Other comprehensive income					31	31
Stock-based compensation			1,085			1,085
Issuance of common stock, RSUs (in shares)	485
Proceeds from the exercise of stock options and ESPP (in shares)	4
Proceeds from the exercise of stock options and ESPP			4			4
Ending balance (in shares) at Jun. 30, 2021	97,959	(121)
Ending balance at Jun. 30, 2021	$ 10	$ (441)	$ 383,403	$ (318,533)	$ 974	$ 65,413

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (13,926)	$ (11,299)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	7,299	6,819
Amortization of contract acquisition costs	314	515
Amortization of ROU assets	4,745	4,690
Stock-based compensation	3,549	2,320
Restructuring and other related costs	935	645
Other	353	35
Net changes in operating assets and liabilities:
Accounts receivable, net	4,160	1,704
Prepaid expenses and other assets	551	1,299
Contract acquisition costs	(117)	(129)
Accounts payable	1,061	(2,452)
Accrued compensation and benefits	(2,948)	(1,431)
Operating lease liabilities	(5,532)	(4,385)
Accrued expenses	(653)	(823)
Other liabilities	286	(578)
Net cash provided by (used in) operating activities	77	(3,070)
Cash flows from investing activities:
Purchases of property and equipment	(2,092)	(2,596)
Net cash used in investing activities	(2,092)	(2,596)
Cash flows from financing activities:
Repayment on finance lease obligations	(315)	(481)
Proceeds from Revolver		27,000
Repayment of Revolver		(7,000)
Proceeds from issuance of common stock	136	76
Net cash (used in) provided by financing activities	(179)	19,595
Effect of exchange rate changes on cash and cash equivalents and restricted cash	626	(68)
Net change in cash and cash equivalents and restricted cash	(1,568)	13,861
Cash and cash equivalents and restricted cash, beginning of period	36,326	29,383
Cash and cash equivalents and restricted cash, end of period	34,758	43,244
Supplemental disclosures of cash flow information:
Cash paid for interest	210	226
Supplemental disclosures of non-cash activities:
Purchases of property and equipment accrued in accounts payable and accrued expenses	7	71
ROU assets obtained in exchange for new lease liabilities	$ 618	$ 204

The Company

The Company	6 Months Ended
	Jun. 30, 2021
The Company
The Company	Note 1 — The Company ServiceSource is a leading provider of BPaaS solutions that enable the transformation of go-to-market organizations and functions for global technology clients. We design, deploy, and operate a suite of innovative solutions and complex processes that support and augment our clients’ B2B customer acquisition, engagement, expansion, and retention activities. Our clients - ranging from Fortune 500 technology titans to high-growth disruptors and innovators - rely on our holistic customer engagement methodology and process excellence, global scale and delivery footprint, and data analytics and business insights to deliver trusted business outcomes that have a meaningful and material positive impact to their long-term revenue and profitability objectives. Through our unique integration of people, process, and technology - leveraged against our more than 20 years of experience and domain expertise in the cloud, software, hardware, medical device and diagnostic equipment, and industrial IoT sectors - we effect and transact billions of dollars of B2B commerce in more than 175 countries on our clients’ behalf annually. “ServiceSource,” “the Company,” “we,” “us,” or “our,” as used herein, refer to ServiceSource International, Inc. and its wholly owned subsidiaries, unless the context indicates otherwise. For a summary of commonly used industry terms and abbreviations used in this quarterly report on Form 10-Q, see the Glossary of Terms.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 — Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements include the accounts of ServiceSource International, Inc. and its wholly owned subsidiaries and have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 8 of Regulation S-X for interim financial information. All intercompany balances and transactions have been eliminated in consolidation. These financial statements do not include all the information required by GAAP for annual financial statements. The unaudited Consolidated Balance Sheet as of December 31, 2020 has been derived from the Company’s audited annual Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 24, 2021. In the opinion of management, these Consolidated Financial Statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair presentation of the Company’s financial position, operating results, and cash flows for the interim periods presented. These Consolidated Financial Statements and accompanying notes should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2020, included in our annual report on Form 10-K. Interim results are not necessarily indicative of results for the entire year. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of net revenue and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. The Company has considered the effects of the COVID-19 pandemic in determining its estimates. However, future events are difficult to predict and subject to change, especially with the risks and uncertainties related to the impact of the COVID-19 pandemic, which could cause estimates and judgments to require adjustment. Actual results and outcomes may differ from our estimates. Cash Equivalents and Restricted Cash The Company follows a three-tier fair value hierarchy, which is described in detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of purchase and are classified as a Level 1 investment. Restricted cash consists of cash in money market accounts that are used to secure letters of credit in connection with two of our leased facilities. Restricted cash is recorded within "Other assets" in the Consolidated Balance Sheets and is classified as a Level 1 investment. The Company had restricted cash of $2.3 million as of June 30, 2021 and December 31, 2020. The Company did not have any other financial instruments or debt measured at fair value as of June 30, 2021 and December 31, 2020. There were no transfers between levels during the six months ended June 30, 2021 and 2020. Government Assistance During 2020, ServiceSource received various grants from the Singapore government, including the Job Support Scheme, which assists enterprises in retaining their local employees during the COVID-19 pandemic. ServiceSource received and recognized income of $1.3 million related to these grants during the year ended December 31, 2020, $0.1 million during the three and six months ended June 30, 2021, and is expected to receive an additional $0.1 million through August 2021. There are no conditions to repay the grants. Government grants are recognized in the Company’s Consolidated Statements of Operations during the same period that the expenses related to the grant are incurred if there is reasonable assurance the grant will be received, and the Company has complied with the conditions attached to the grant. New Accounting Standards Adopted Income Taxes In December 2019, the FASB issued an ASU that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2020, with early adoption permitted. The Company adopted this standard effective January 1, 2021 and the effects of this standard were applied prospectively to eligible costs incurred on or after January 1, 2021. The adoption of this standard did not have a material impact on the Consolidated Financial Statements. New Accounting Standards Issued but Not yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued an ASU that amends the measurement of credit losses on financial instruments and requires measurement and recognition of expected versus incurred credit losses for financial assets held. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2022, with early adoption permitted. This standard will apply to the Company’s accounts receivable and contract assets. Based on our current analysis, the Company does not expect the adoption to have a material impact on the Consolidated Financial Statements as credit losses from trade receivables have historically been insignificant. The Company will adopt this standard effective January 1, 2023.

Debt

Debt	6 Months Ended
	Jun. 30, 2021
Debt
Debt	​ ​ Note 3 — Debt Revolving Line of Credit In July 2018, ServiceSource, together with its wholly owned subsidiary, ServiceSource Delaware, Inc., entered into the 2018 Credit Agreement, providing for a $40.0 million revolving line of credit allowing each borrower to borrow against its domestic receivables as defined in the 2018 Credit Agreement. The Revolver in the 2018 Credit Agreement was scheduled to mature in July 2021 and was repaid in full in connection with the Company’s entry into the 2021 Credit Agreement. The Revolver under the 2018 Credit Agreement bore interest at a variable rate per annum based on the greater of the prime rate, the Federal Funds rate plus As of June 30, 2021, the Company had $15.0 million of borrowings under the Revolver through a one-month Eurodollar borrowing at an effective interest rate of 2.10% maturing July 2021. An additional $9.6 million was available for borrowing under the Revolver as of June 30, 2021. The Eurodollar borrowings may be extended upon maturity, converted into a base rate borrowing upon maturity or require an incremental payment if the borrowing base decreases below the current amount outstanding during the term of the Eurodollar borrowing. The obligations under the 2018 Credit Agreement were secured by substantially all the assets of ServiceSource and certain of its subsidiaries, including pledges of equity in certain of the Company’s subsidiaries. The 2018 Credit Agreement had financial covenants which the Company was in compliance with as of June 30, 2021 and December 31, 2020. In July 2021, ServiceSource, together with its wholly owned subsidiary, ServiceSource Delaware, Inc., entered into the 2021 Credit Agreement, which provides for a $35.0 million revolving line of credit allowing each borrower to borrow against its receivables as defined in the 2021 Credit Agreement. At the Company’s request and subject to customary conditions, the aggregate commitments under the 2021 Credit Agreement may be increased up to an additional $10.0 million, for a total maximum commitment amount of $45.0 million. The Revolver in the 2021 Credit Agreement matures in July 2024 and bears interest at a rate equal to BSBY plus 2.00% to 2.50% per annum or, at our election, an alternate base rate plus 1.00% to 1.50% per annum. The obligations under the 2021 Credit Agreement are secured by substantially all assets of ServiceSource and certain of its subsidiaries, including pledges of equity in certain of the Company’s subsidiaries. During July 2021, the Company borrowed $3.5 million under the Revolver through a one-month BSBY borrowing at an effective interest rate of 2.32% maturing August 2021. Proceeds from the Revolver are used for working capital and general corporate purposes. Interest Expense Interest expense related to the amortization of debt issuance costs and interest expense associated with the Company’s debt obligation was $0.1 million and $0.2 million for the three months ended June 30, 2021 and 2020, respectively, and $0.2 million and $0.3 million for the six months ended June 30, 2021 and 2020, respectively.

Leases

Leases	6 Months Ended
	Jun. 30, 2021
Leases
Leases	Note 4 — Leases The Company has operating leases for office space and finance leases for certain equipment under non-cancelable agreements with various expiration dates through May 2030. Certain office leases include the option to extend the term between one During 2021, the Company entered into a sublease agreement through the end of the original lease term with a third-party for two floors of its Manila office space and extended its lease for a portion of its Yokohama office space through May 2024. Supplemental income statement information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Operating lease cost ​ $ 2,853 ​ $ 2,924 ​ $ 5,794 ​ $ 6,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of leased assets ​ ​ 107 ​ ​ 163 ​ ​ 266 ​ ​ 351 Interest on lease liabilities ​ ​ 7 ​ ​ 25 ​ ​ 18 ​ ​ 56 Total finance lease cost ​ ​ 114 ​ ​ 188 ​ ​ 284 ​ ​ 407 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sublease income ​ ​ (1,287) ​ ​ (895) ​ ​ (2,385) ​ ​ (1,787) Net lease cost ​ $ 1,680 ​ $ 2,217 ​ $ 3,693 ​ $ 4,651 ​ Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 December 31, 2020 ​ ​ (in thousands) Operating leases: ​ ​ ​ ​ ​ ​ ROU assets ​ $ 25,290 ​ $ 29,798 ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ $ 10,008 ​ $ 10,797 Operating lease liabilities, net of current portion ​ ​ 21,408 ​ ​ 25,975 Total operating lease liabilities ​ $ 31,416 ​ $ 36,772 ​ ​ ​ ​ ​ ​ ​ Finance leases: ​ ​ ​ ​ ​ ​ Property and equipment ​ $ 2,870 ​ $ 2,880 Accumulated depreciation ​ ​ (2,226) ​ ​ (1,963) Property and equipment, net ​ $ 644 ​ $ 917 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 356 ​ $ 608 Other long-term liabilities ​ ​ — ​ ​ 63 Total finance lease liabilities ​ $ 356 ​ $ 671 ​ Lease term and discount rate information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended June 30, ​ 2021 ​ 2020 Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ ​ ​ Operating lease ​ ​ 5.7 ​ ​ 5.8 ​ Finance lease ​ ​ 0.5 ​ ​ 1.4 ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ Operating lease ​ ​ 6.2 % ​ 6.4 % Finance lease ​ ​ 6.5 % ​ 7.5 % ​ ​ Maturities of lease liabilities were as follows as of June 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Leases Operating Sublease Finance Leases Total ​ ​ (in thousands) Remainder of 2021 ​ $ 6,291 ​ $ (2,460) ​ $ 300 ​ $ 4,131 2022 ​ ​ 9,412 ​ ​ (2,538) ​ ​ 64 ​ ​ 6,938 2023 ​ ​ 4,447 ​ ​ (623) ​ ​ — ​ ​ 3,824 2024 ​ ​ 3,042 ​ ​ — ​ ​ — ​ ​ 3,042 2025 ​ ​ 2,991 ​ ​ — ​ ​ — ​ ​ 2,991 Thereafter ​ ​ 11,344 ​ ​ — ​ ​ — ​ ​ 11,344 Total lease payments ​ ​ 37,527 ​ ​ (5,621) ​ ​ 364 ​ ​ 32,270 Less: interest ​ ​ (6,111) ​ ​ — ​ ​ (8) ​ ​ (6,119) Total ​ $ 31,416 ​ $ (5,621) ​ $ 356 ​ $ 26,151 ​

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2021
Revenue Recognition
Revenue Recognition	Note 5 — Revenue Recognition The following tables present the disaggregation of revenue from contracts with our clients: Revenue by Performance Obligation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Selling services ​ $ 45,609 ​ $ 46,545 ​ $ 89,937 ​ $ 95,718 Professional services ​ ​ 698 ​ ​ 1,093 ​ ​ 1,393 ​ ​ 2,034 Total revenue ​ $ 46,307 ​ $ 47,638 ​ $ 91,330 ​ $ 97,752 ​ Revenue by Geography Revenue for each geography generally reflects commissions earned from sales of service contracts managed from revenue delivery centers in that geography and subscription sales and professional services to deploy the Company’s solutions. Predominantly all the service contracts sold and managed by the revenue delivery centers relate to end customers located in the same geography. All NALA revenue represents revenue generated within the U.S. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) NALA ​ $ 25,515 ​ $ 27,558 ​ $ 50,849 ​ $ 56,031 EMEA ​ ​ 13,318 ​ ​ 12,846 ​ ​ 26,087 ​ ​ 26,853 APJ ​ ​ 7,474 ​ ​ 7,234 ​ ​ 14,394 ​ ​ 14,868 Total revenue ​ $ 46,307 ​ $ 47,638 ​ $ 91,330 ​ $ 97,752 ​ Revenue by Contract Pricing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Variable consideration ​ $ 34,138 ​ $ 33,813 ​ $ 67,349 ​ $ 70,179 Fixed consideration ​ ​ 12,169 ​ ​ 13,825 ​ ​ 23,981 ​ ​ 27,573 Total revenue ​ $ 46,307 ​ $ 47,638 ​ $ 91,330 ​ $ 97,752 ​ Contract Balances As of June 30, 2021, contract assets and liabilities were $0.0 million and $0.5 million, respectively. As of December 31, 2020, contract assets and liabilities were $0.5 million and $0.4 million, respectively. Transaction Price Allocated to Remaining Performance Obligations As of June 30, 2021, assuming none of the Company’s current contracts with fixed consideration are renewed, the Company estimates receiving approximately $32.9 million in future selling services fixed consideration and approximately $0.4 million in professional services fixed consideration. Contract Acquisition Costs As of June 30, 2021 and December 31, 2020, capitalized contract acquisition costs were $0.7 million and $0.9 million, respectively. The Company recorded amortization expense related to capitalized contract acquisition costs of $0.1 million and $0.2 million for the three months ended June 30, 2021 and 2020, respectively, and $0.3 million and $0.5 million for the six months ended June 30, 2021 and 2020, respectively. Impairment recognized on contract costs was insignificant for the three and six months ended June 30, 2021 and 2020.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2021
Stock-Based Compensation
Stock-Based Compensation	Note 6 — Stock-Based Compensation ESPP The Company previously offered an ESPP until its expiration in February 2021. 2021 PSU Awards During March 2021, the Company granted PSUs under the 2020 Plan to certain executives in which the number of shares ultimately received depends on the Company’s achievement of two performance goals for fiscal year 2021 and a rTSR modifier based on the Company’s rTSR for fiscal years 2021, 2022, and 2023 compared to a peer group. The aggregate target number of shares subject to these awards is 0.8 million. The awards were valued on the grant date using a Monte Carlo simulation for the rTSR modifier and using the Company’s closing stock price for the performance metrics for an aggregate grant date fair value of $1.2 million. The number of shares ultimately received related to these awards will range from 0% to 173% of the participant’s target award and will vest on the third anniversary of the grant date. The Company’s expense will be recognized over the service period and adjusted based on estimated achievement of the performance goals. Additionally, certain of the Company’s senior leaders elected to receive a portion of their annual cash corporate incentive plan in PSUs. The Company granted the PSUs under the 2020 Plan during March 2021. The number of shares ultimately received depends on the Company’s achievement of specified revenue, Adjusted EBITDA, and free cash flow performance goals for fiscal year 2021. The aggregate target number of shares subject to these awards is 0.4 million. The awards were valued using the Company’s closing stock price on the grant date and had an aggregate grant date fair value of $0.6 million. The number of shares ultimately received related to these awards ranges from 0% to 200% of the participant’s target award and will vest on the first anniversary of the grant date. The Company’s expense will be recognized over the service period and adjusted based on estimated achievement of the performance targets. ​ Stock-Based Compensation Expense The following table presents stock-based compensation expense as allocated within the Company’s Consolidated Statements of Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Cost of revenue ​ $ 288 ​ $ 90 ​ $ 418 ​ $ 135 Sales and marketing ​ ​ 168 ​ ​ 444 ​ ​ 359 ​ ​ 821 Research and development ​ ​ 17 ​ ​ 1 ​ ​ 32 ​ ​ 19 General and administrative ​ ​ 601 ​ ​ 740 ​ ​ 2,740 ​ ​ 1,345 Total stock-based compensation ​ $ 1,074 ​ $ 1,275 ​ $ 3,549 ​ $ 2,320 ​ The above table does not include capitalized stock-based compensation related to internal-use software that was insignificant for the three and six months ended June 30, 2021 and 2020. Stock Awards A summary of the Company’s stock option activity and related information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ Exercise ​ Contractual ​ ​ ​ ​ Shares Price Life (Years) Intrinsic Value ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ (in thousands) Outstanding as of December 31, 2020 ​ ​ 3,030 ​ $ 2.09 ​ ​ ​ ​ $ 1,372 Exercised ​ ​ (272) ​ $ 1.18 ​ ​ ​ ​ ​ ​ Expired and/or forfeited ​ ​ (751) ​ $ 2.03 ​ ​ ​ ​ ​ ​ Outstanding as of June 30, 2021 ​ ​ 2,007 ​ $ 2.24 ​ ​ 6.59 ​ $ 383 Exercisable as of June 30, 2021 ​ ​ 1,777 ​ $ 2.38 ​ ​ 6.40 ​ $ 281 ​ As of June 30, 2021, there was $0.1 million of unrecognized compensation expense related to previously granted stock options, which is expected to be recognized over a weighted-average period of 1.2 years. A summary of the Company’s RSU and PSU activity and related information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ Average Grant ​ Units Date Fair Value ​ ​ (in thousands) ​ ​ ​ Non-vested as of December 31, 2020 ​ ​ 7,015 ​ $ 1.55 Granted ​ ​ 2,557 ​ $ 1.53 Vested ​ ​ (611) ​ $ 2.47 Forfeited ​ ​ (1,134) ​ $ 1.63 Non-vested as of June 30, 2021 ​ ​ 7,827 ​ $ 1.46 ​ As of June 30, 2021, there was $6.1 million of unrecognized compensation expense related to previously granted RSUs and PSUs, which is expected to be recognized over a weighted-average period of 1.7 years. Potential shares of common stock that are not included in the determination of diluted net loss per share because they are anti-dilutive for the periods presented consist of stock options and unvested RSUs and PSUs. The Company excluded from diluted earnings per share the weighted-average common share equivalents related to 1.5 million and 5.2 million shares for the three months ended June 30, 2021 and 2020, respectively, and 1.4 million and 4.3 million shares for the six months ended June 30, 2021 and 2020, respectively, because their effect would have been anti-dilutive.

Restructuring and Other Related

Restructuring and Other Related Costs	6 Months Ended
	Jun. 30, 2021
Restructuring and Other Related Costs
Restructuring and Other Related Costs	Note 7 — Restructuring and Other Related Costs The Company has undergone restructuring efforts to better align its cost structure with its business and market conditions. These restructuring efforts include severance and other employee costs, lease and other contract termination costs and asset impairments. Severance and other employee costs include severance payments, related employee benefits, stock-based compensation related to the accelerated vesting of certain equity awards and employee-related legal fees. Lease and other contract termination costs include charges related to lease consolidation and abandonment of spaces no longer utilized and the cancellation of certain contracts with outside vendors. Asset impairments include charges related to leasehold improvements and furniture in spaces vacated or no longer in use. The restructuring plans and future cash outlays are recorded in "Accrued expenses," "Accrued compensation," and "Other long-term liabilities" in the Consolidated Balance Sheet as of December 31, 2020. There are no future restructuring plans and future cash outlays as of June 30, 2021. During 2020, the Company announced a restructuring effort to align with its virtual-first operating model and reduce the operating cost structure resulting in a reduction of headcount and office lease costs. The Company recognized charges related to this restructuring effort of $0.1 million and $1.0 million for the three and six months ended June 30, 2021, respectively. The Company does not expect to incur additional charges related to this restructuring effort as of June 30, 2021. The following table presents a reconciliation of the beginning and ending fair value liability balance related to the 2020 restructuring effort: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Severance and Other ​ Lease Termination ​ ​ ​ ​ Employee Costs Costs Total ​ ​ (in thousands) Balance as of January 1, 2020 ​ $ — ​ $ — ​ $ — Restructuring and other related costs ​ ​ 780 ​ ​ 59 ​ ​ 839 Cash paid ​ ​ (442) ​ ​ — ​ ​ (442) Balance as of December 31, 2020 ​ ​ 338 ​ ​ 59 ​ ​ 397 Restructuring and other related costs ​ ​ 897 ​ ​ 77 ​ ​ 974 Cash paid ​ ​ (1,235) ​ ​ (136) ​ ​ (1,371) Balance as of June 30, 2021 ​ $ — ​ $ — ​ $ — ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Taxes
Income Taxes	Note 8 — Income Taxes The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. The "Provision for income tax expense" in the Consolidated Statements of Operations primarily consists of income and withholding taxes for foreign and state jurisdictions where the Company has profitable operations, as well as valuation allowance adjustments for certain U.S. tax jurisdictions. No tax benefit was provided for losses incurred in the U.S., Ireland, and Singapore because those losses are offset by a full valuation allowance. The tax years 2012 through 2020 generally remain subject to examination by federal, state, and foreign tax authorities. The gross amount of the Company’s unrecognized tax benefits was $1.0 million as of June 30, 2021 and December 31, 2020, none of which, if recognized, would affect the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the three and six months ended June 30, 2021 and 2020, interest and penalties recognized were insignificant.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies
Commitments and Contingencies	Note 9 — Commitments and Contingencies Letters of Credit In connection with two of our leased facilities, the Company is required to maintain two letters of credit totaling $2.3 million. The letters of credit are secured by $2.3 million of cash in money market accounts, which are classified as restricted cash in "Other assets" in the Consolidated Balance Sheets. Non-cancelable Service Contract Commitments Future minimum payments under non-cancelable service contract commitments were as follows: ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ (in thousands) Remainder of 2021 ​ $ 6,095 2022 ​ ​ 10,266 2023 ​ ​ 8,183 2024 ​ ​ 828 Thereafter ​ ​ — Total ​ $ 25,372 ​

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements include the accounts of ServiceSource International, Inc. and its wholly owned subsidiaries and have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 8 of Regulation S-X for interim financial information. All intercompany balances and transactions have been eliminated in consolidation. These financial statements do not include all the information required by GAAP for annual financial statements. The unaudited Consolidated Balance Sheet as of December 31, 2020 has been derived from the Company’s audited annual Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 24, 2021. In the opinion of management, these Consolidated Financial Statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair presentation of the Company’s financial position, operating results, and cash flows for the interim periods presented. These Consolidated Financial Statements and accompanying notes should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2020, included in our annual report on Form 10-K. Interim results are not necessarily indicative of results for the entire year.
Use of Estimates	Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of net revenue and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. The Company has considered the effects of the COVID-19 pandemic in determining its estimates. However, future events are difficult to predict and subject to change, especially with the risks and uncertainties related to the impact of the COVID-19 pandemic, which could cause estimates and judgments to require adjustment. Actual results and outcomes may differ from our estimates.
Cash Equivalents and Restricted Cash	Cash Equivalents and Restricted Cash The Company follows a three-tier fair value hierarchy, which is described in detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of purchase and are classified as a Level 1 investment. Restricted cash consists of cash in money market accounts that are used to secure letters of credit in connection with two of our leased facilities. Restricted cash is recorded within "Other assets" in the Consolidated Balance Sheets and is classified as a Level 1 investment. The Company had restricted cash of $2.3 million as of June 30, 2021 and December 31, 2020. The Company did not have any other financial instruments or debt measured at fair value as of June 30, 2021 and December 31, 2020. There were no transfers between levels during the six months ended June 30, 2021 and 2020.
Government Assistance	Government Assistance During 2020, ServiceSource received various grants from the Singapore government, including the Job Support Scheme, which assists enterprises in retaining their local employees during the COVID-19 pandemic. ServiceSource received and recognized income of $1.3 million related to these grants during the year ended December 31, 2020, $0.1 million during the three and six months ended June 30, 2021, and is expected to receive an additional $0.1 million through August 2021. There are no conditions to repay the grants. Government grants are recognized in the Company’s Consolidated Statements of Operations during the same period that the expenses related to the grant are incurred if there is reasonable assurance the grant will be received, and the Company has complied with the conditions attached to the grant.
New Accounting Standards Adopted And New Accounting Standards Issued But Not Yet Adopted	New Accounting Standards Adopted Income Taxes In December 2019, the FASB issued an ASU that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2020, with early adoption permitted. The Company adopted this standard effective January 1, 2021 and the effects of this standard were applied prospectively to eligible costs incurred on or after January 1, 2021. The adoption of this standard did not have a material impact on the Consolidated Financial Statements. New Accounting Standards Issued but Not yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued an ASU that amends the measurement of credit losses on financial instruments and requires measurement and recognition of expected versus incurred credit losses for financial assets held. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2022, with early adoption permitted. This standard will apply to the Company’s accounts receivable and contract assets. Based on our current analysis, the Company does not expect the adoption to have a material impact on the Consolidated Financial Statements as credit losses from trade receivables have historically been insignificant. The Company will adopt this standard effective January 1, 2023.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2021
Leases
Summary of Supplemental Income Statement Information and Other Information	Supplemental income statement information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Operating lease cost ​ $ 2,853 ​ $ 2,924 ​ $ 5,794 ​ $ 6,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of leased assets ​ ​ 107 ​ ​ 163 ​ ​ 266 ​ ​ 351 Interest on lease liabilities ​ ​ 7 ​ ​ 25 ​ ​ 18 ​ ​ 56 Total finance lease cost ​ ​ 114 ​ ​ 188 ​ ​ 284 ​ ​ 407 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sublease income ​ ​ (1,287) ​ ​ (895) ​ ​ (2,385) ​ ​ (1,787) Net lease cost ​ $ 1,680 ​ $ 2,217 ​ $ 3,693 ​ $ 4,651 Lease term and discount rate information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended June 30, ​ 2021 ​ 2020 Weighted-average remaining lease term (in years): ​ ​ ​ ​ ​ ​ ​ Operating lease ​ ​ 5.7 ​ ​ 5.8 ​ Finance lease ​ ​ 0.5 ​ ​ 1.4 ​ Weighted-average discount rate: ​ ​ ​ ​ ​ ​ ​ Operating lease ​ ​ 6.2 % ​ 6.4 % Finance lease ​ ​ 6.5 % ​ 7.5 %
Summary of Supplemental Balance Sheet Information	Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 December 31, 2020 ​ ​ (in thousands) Operating leases: ​ ​ ​ ​ ​ ​ ROU assets ​ $ 25,290 ​ $ 29,798 ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ $ 10,008 ​ $ 10,797 Operating lease liabilities, net of current portion ​ ​ 21,408 ​ ​ 25,975 Total operating lease liabilities ​ $ 31,416 ​ $ 36,772 ​ ​ ​ ​ ​ ​ ​ Finance leases: ​ ​ ​ ​ ​ ​ Property and equipment ​ $ 2,870 ​ $ 2,880 Accumulated depreciation ​ ​ (2,226) ​ ​ (1,963) Property and equipment, net ​ $ 644 ​ $ 917 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 356 ​ $ 608 Other long-term liabilities ​ ​ — ​ ​ 63 Total finance lease liabilities ​ $ 356 ​ $ 671
Summary of Maturities of Operating Lease Liabilities	Maturities of lease liabilities were as follows as of June 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Leases Operating Sublease Finance Leases Total ​ ​ (in thousands) Remainder of 2021 ​ $ 6,291 ​ $ (2,460) ​ $ 300 ​ $ 4,131 2022 ​ ​ 9,412 ​ ​ (2,538) ​ ​ 64 ​ ​ 6,938 2023 ​ ​ 4,447 ​ ​ (623) ​ ​ — ​ ​ 3,824 2024 ​ ​ 3,042 ​ ​ — ​ ​ — ​ ​ 3,042 2025 ​ ​ 2,991 ​ ​ — ​ ​ — ​ ​ 2,991 Thereafter ​ ​ 11,344 ​ ​ — ​ ​ — ​ ​ 11,344 Total lease payments ​ ​ 37,527 ​ ​ (5,621) ​ ​ 364 ​ ​ 32,270 Less: interest ​ ​ (6,111) ​ ​ — ​ ​ (8) ​ ​ (6,119) Total ​ $ 31,416 ​ $ (5,621) ​ $ 356 ​ $ 26,151
Operating Lease, Lease Income	​ Maturities of lease liabilities were as follows as of June 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Leases Operating Sublease Finance Leases Total ​ ​ (in thousands) Remainder of 2021 ​ $ 6,291 ​ $ (2,460) ​ $ 300 ​ $ 4,131 2022 ​ ​ 9,412 ​ ​ (2,538) ​ ​ 64 ​ ​ 6,938 2023 ​ ​ 4,447 ​ ​ (623) ​ ​ — ​ ​ 3,824 2024 ​ ​ 3,042 ​ ​ — ​ ​ — ​ ​ 3,042 2025 ​ ​ 2,991 ​ ​ — ​ ​ — ​ ​ 2,991 Thereafter ​ ​ 11,344 ​ ​ — ​ ​ — ​ ​ 11,344 Total lease payments ​ ​ 37,527 ​ ​ (5,621) ​ ​ 364 ​ ​ 32,270 Less: interest ​ ​ (6,111) ​ ​ — ​ ​ (8) ​ ​ (6,119) Total ​ $ 31,416 ​ $ (5,621) ​ $ 356 ​ $ 26,151
Summary of Maturities of Finance Lease Liabilities	Maturities of lease liabilities were as follows as of June 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Leases Operating Sublease Finance Leases Total ​ ​ (in thousands) Remainder of 2021 ​ $ 6,291 ​ $ (2,460) ​ $ 300 ​ $ 4,131 2022 ​ ​ 9,412 ​ ​ (2,538) ​ ​ 64 ​ ​ 6,938 2023 ​ ​ 4,447 ​ ​ (623) ​ ​ — ​ ​ 3,824 2024 ​ ​ 3,042 ​ ​ — ​ ​ — ​ ​ 3,042 2025 ​ ​ 2,991 ​ ​ — ​ ​ — ​ ​ 2,991 Thereafter ​ ​ 11,344 ​ ​ — ​ ​ — ​ ​ 11,344 Total lease payments ​ ​ 37,527 ​ ​ (5,621) ​ ​ 364 ​ ​ 32,270 Less: interest ​ ​ (6,111) ​ ​ — ​ ​ (8) ​ ​ (6,119) Total ​ $ 31,416 ​ $ (5,621) ​ $ 356 ​ $ 26,151

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue Recognition
Disaggregation of Revenue from Contracts with Clients	The following tables present the disaggregation of revenue from contracts with our clients: Revenue by Performance Obligation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Selling services ​ $ 45,609 ​ $ 46,545 ​ $ 89,937 ​ $ 95,718 Professional services ​ ​ 698 ​ ​ 1,093 ​ ​ 1,393 ​ ​ 2,034 Total revenue ​ $ 46,307 ​ $ 47,638 ​ $ 91,330 ​ $ 97,752 ​ Revenue by Geography Revenue for each geography generally reflects commissions earned from sales of service contracts managed from revenue delivery centers in that geography and subscription sales and professional services to deploy the Company’s solutions. Predominantly all the service contracts sold and managed by the revenue delivery centers relate to end customers located in the same geography. All NALA revenue represents revenue generated within the U.S. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) NALA ​ $ 25,515 ​ $ 27,558 ​ $ 50,849 ​ $ 56,031 EMEA ​ ​ 13,318 ​ ​ 12,846 ​ ​ 26,087 ​ ​ 26,853 APJ ​ ​ 7,474 ​ ​ 7,234 ​ ​ 14,394 ​ ​ 14,868 Total revenue ​ $ 46,307 ​ $ 47,638 ​ $ 91,330 ​ $ 97,752 ​ Revenue by Contract Pricing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Variable consideration ​ $ 34,138 ​ $ 33,813 ​ $ 67,349 ​ $ 70,179 Fixed consideration ​ ​ 12,169 ​ ​ 13,825 ​ ​ 23,981 ​ ​ 27,573 Total revenue ​ $ 46,307 ​ $ 47,638 ​ $ 91,330 ​ $ 97,752

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Stock-Based Compensation
Summary of Stock-Based Compensation Expense	The following table presents stock-based compensation expense as allocated within the Company’s Consolidated Statements of Operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Cost of revenue ​ $ 288 ​ $ 90 ​ $ 418 ​ $ 135 Sales and marketing ​ ​ 168 ​ ​ 444 ​ ​ 359 ​ ​ 821 Research and development ​ ​ 17 ​ ​ 1 ​ ​ 32 ​ ​ 19 General and administrative ​ ​ 601 ​ ​ 740 ​ ​ 2,740 ​ ​ 1,345 Total stock-based compensation ​ $ 1,074 ​ $ 1,275 ​ $ 3,549 ​ $ 2,320
Summary of Option and Restricted Stock Activity	A summary of the Company’s stock option activity and related information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ Exercise ​ Contractual ​ ​ ​ ​ Shares Price Life (Years) Intrinsic Value ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ (in thousands) Outstanding as of December 31, 2020 ​ ​ 3,030 ​ $ 2.09 ​ ​ ​ ​ $ 1,372 Exercised ​ ​ (272) ​ $ 1.18 ​ ​ ​ ​ ​ ​ Expired and/or forfeited ​ ​ (751) ​ $ 2.03 ​ ​ ​ ​ ​ ​ Outstanding as of June 30, 2021 ​ ​ 2,007 ​ $ 2.24 ​ ​ 6.59 ​ $ 383 Exercisable as of June 30, 2021 ​ ​ 1,777 ​ $ 2.38 ​ ​ 6.40 ​ $ 281
Summary of Additional Information Concerning Vested RSUs and PSUs	A summary of the Company’s RSU and PSU activity and related information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ Average Grant ​ Units Date Fair Value ​ ​ (in thousands) ​ ​ ​ Non-vested as of December 31, 2020 ​ ​ 7,015 ​ $ 1.55 Granted ​ ​ 2,557 ​ $ 1.53 Vested ​ ​ (611) ​ $ 2.47 Forfeited ​ ​ (1,134) ​ $ 1.63 Non-vested as of June 30, 2021 ​ ​ 7,827 ​ $ 1.46

Restructuring and Other Relat_2

Restructuring and Other Related Costs (Tables)	6 Months Ended
	Jun. 30, 2021
Restructuring and Other Related Costs
Schedule of Restructuring and Other Reserve Activities	The following table presents a reconciliation of the beginning and ending fair value liability balance related to the 2020 restructuring effort: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Severance and Other ​ Lease Termination ​ ​ ​ ​ Employee Costs Costs Total ​ ​ (in thousands) Balance as of January 1, 2020 ​ $ — ​ $ — ​ $ — Restructuring and other related costs ​ ​ 780 ​ ​ 59 ​ ​ 839 Cash paid ​ ​ (442) ​ ​ — ​ ​ (442) Balance as of December 31, 2020 ​ ​ 338 ​ ​ 59 ​ ​ 397 Restructuring and other related costs ​ ​ 897 ​ ​ 77 ​ ​ 974 Cash paid ​ ​ (1,235) ​ ​ (136) ​ ​ (1,371) Balance as of June 30, 2021 ​ $ — ​ $ — ​ $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies
Future Minimum Payments Under Non-cancelable Service Contract Commitments	Future minimum payments under non-cancelable service contract commitments were as follows: ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ (in thousands) Remainder of 2021 ​ $ 6,095 2022 ​ ​ 10,266 2023 ​ ​ 8,183 2024 ​ ​ 828 Thereafter ​ ​ — Total ​ $ 25,372

The Company (Details)

The Company (Details)	6 Months Ended
	Jun. 30, 2021country
The Company
Years of operating experience	20 years
Number of countries in which company operates	175

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) $ in Millions	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)location	Jun. 30, 2021USD ($)location	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of leased facilities | location	2	2
Proceeds received from grant	$ 0.1	$ 0.1		$ 1.3
Additional proceeds expected to be received from grant	0.1	0.1
Financial instrument, fair value	0	0		0
Debt, fair value	0	0		0
Asset transfer, L1 to L2	0	0	$ 0
Asset transfer, L2 to L1	0	0	0
Asset transfer, into L3		0	0
Asset transfer, out of L3		0	0
Liability transfer, L1 to L2	0	0	0
Liability transfer, L2 to L1	0	0	0
Liability transfer, into L3		0	0
Liability transfer, out of L3		0	$ 0
Level 1
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash	$ 2.3	$ 2.3		$ 2.3

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jul. 31, 2021	Jul. 31, 2018	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Revolver			$ 15,000		$ 15,000		$ 15,000
Proceeds from Lines of Credit						$ 27,000
Repayments of Lines of Credit						7,000
BSBY | Minimum
Debt Instrument [Line Items]
Basis spread of interest rate	2.00%
BSBY | Maximum
Debt Instrument [Line Items]
Basis spread of interest rate	2.50%
Base rate | Minimum
Debt Instrument [Line Items]
Basis spread of interest rate	1.00%
Base rate | Maximum
Debt Instrument [Line Items]
Basis spread of interest rate	1.50%
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Additional borrowing capacity	$ 10,000
Revised maximum borrowing capacity	45,000
Revolver			$ 15,000		$ 15,000
Effective interest rate			2.10%		2.10%
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 35,000	$ 40,000
Effective interest rate	2.32%
Line of credit facility, remaining borrowing capacity			$ 9,600		$ 9,600
Interest expense			$ 100	$ 200	$ 200	$ 300
Proceeds from Lines of Credit	$ 3,500
Line of Credit | Revolving Credit Facility | Federal Funds rate
Debt Instrument [Line Items]
Basis spread of interest rate		0.50%
Line of Credit | Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Basis spread of interest rate		1.00%
Line of Credit | Revolving Credit Facility | Eurodollar
Debt Instrument [Line Items]
Basis spread of interest rate		2.00%
Line of Credit | Revolving Credit Facility | Base rate
Debt Instrument [Line Items]
Basis spread of interest rate		1.00%

Leases - Narrative (Details)

Leases - Narrative (Details)	6 Months Ended
	Jun. 30, 2021
Minimum
Lessee, Lease, Description [Line Items]
Option to extend, term (in years)	1 year
Option to terminate, term (in years)	1 year
Maximum
Lessee, Lease, Description [Line Items]
Option to extend, term (in years)	7 years

Leases - Supplemental Income St

Leases - Supplemental Income Statement Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases
Operating lease cost	$ 2,853	$ 2,924	$ 5,794	$ 6,031
Finance lease cost:
Amortization of leased assets	107	163	266	351
Interest on lease liabilities	7	25	18	56
Total finance lease cost	114	188	284	407
Sublease income	(1,287)	(895)	(2,385)	(1,787)
Net lease cost	$ 1,680	$ 2,217	$ 3,693	$ 4,651

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Operating leases:
ROU assets	$ 25,290	$ 29,798
Operating lease liabilities	10,008	10,797
Operating lease liabilities, net of current portion	21,408	25,975
Total operating lease liabilities	31,416	36,772
Finance leases:
Property and equipment	2,870	2,880
Accumulated depreciation	(2,226)	(1,963)
Property and equipment, net	644	917
Other current liabilities	356	608
Other long-term liabilities	0	63
Total finance lease liabilities	$ 356	$ 671
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net	Property and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities

Leases - Lease Term and Discoun

Leases - Lease Term and Discount Rate (Details)	Jun. 30, 2021	Jun. 30, 2020
Weighted-average remaining lease term (in years):
Operating lease	5 years 8 months 12 days	5 years 9 months 18 days
Finance lease	6 months	1 year 4 months 24 days
Weighted-average discount rate:
Operating lease	6.20%	6.40%
Finance lease	6.50%	7.50%

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Operating Leases
Remainder of 2021	$ 6,291
2022	9,412
2023	4,447
2024	3,042
2025	2,991
Thereafter	11,344
Total lease payments	37,527
Less: interest	(6,111)
Total	31,416	$ 36,772
Operating Sublease
Remainder of 2021	(2,460)
2022	(2,538)
2023	(623)
2024	0
2025	0
Thereafter	0
Total	(5,621)
Finance Leases
Remainder of 2021	300
2022	64
2023	0
2024	0
2025	0
Thereafter	0
Total lease payments	364
Less: interest	(8)
Total	356	$ 671
Total
Remainder of 2021	4,131
2022	6,938
2023	3,824
2024	3,042
2025	2,991
Thereafter	11,344
Total lease payments	32,270
Less: interest	(6,119)
Total	$ 26,151

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - 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]
Net revenue	$ 46,307	$ 47,638	$ 91,330	$ 97,752
Variable consideration
Disaggregation of Revenue [Line Items]
Net revenue	34,138	33,813	67,349	70,179
Fixed consideration
Disaggregation of Revenue [Line Items]
Net revenue	12,169	13,825	23,981	27,573
NALA
Disaggregation of Revenue [Line Items]
Net revenue	25,515	27,558	50,849	56,031
EMEA
Disaggregation of Revenue [Line Items]
Net revenue	13,318	12,846	26,087	26,853
APJ
Disaggregation of Revenue [Line Items]
Net revenue	7,474	7,234	14,394	14,868
Selling services
Disaggregation of Revenue [Line Items]
Net revenue	45,609	46,545	89,937	95,718
Professional services
Disaggregation of Revenue [Line Items]
Net revenue	$ 698	$ 1,093	$ 1,393	$ 2,034

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract asset	$ 0		$ 0		$ 0.5
Contract liability	0.5		0.5		0.4
Contract acquisition asset	0.7		0.7		$ 0.9
Amortization of contract acquisition costs	0.1	$ 0.2	0.3	$ 0.5
Selling services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligation	32.9		32.9
Professional services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligation	$ 0.4		$ 0.4

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) shares in Thousands, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2021USD ($)itemshares	Jun. 30, 2021USD ($)shares	Jun. 30, 2020shares	Jun. 30, 2021USD ($)shares	Jun. 30, 2020shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Performance Goals | item	2
Antidilutive shares excluded from diluted earnings per share calculation (in shares) | shares		1,500	5,200	1,400	4,300
PSUs | Certain Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	800
Fair value of shares granted | $	$ 1.2
PSUs | Certain Senior Leaders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	400
Fair value of shares granted | $	$ 0.6
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, stock options | $		$ 0.1		$ 0.1
Unrecognized compensation expense, weighted-average period recognized				1 year 2 months 12 days
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares				2,557
Unrecognized compensation expense, weighted-average period recognized				1 year 8 months 12 days
Unrecognized compensation expense, RSUs and PSUs | $		$ 6.1		$ 6.1
Minimum | PSUs | Certain Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares received from rewards, percent	0.00%
Minimum | PSUs | Certain Senior Leaders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares received from rewards, percent	0.00%
Maximum | PSUs | Certain Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares received from rewards, percent	173.00%
Maximum | PSUs | Certain Senior Leaders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares received from rewards, percent	200.00%

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,074	$ 1,275	$ 3,549	$ 2,320
Cost of revenue.
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	288	90	418	135
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	168	444	359	821
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	17	1	32	19
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 601	$ 740	$ 2,740	$ 1,345

Stock-Based Compensation - Opti

Stock-Based Compensation - Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Shares
Outstanding, beginning balance (in shares)	3,030
Number of shares, options exercised (in shares)	(272)
Expired and/or forfeited (in shares)	(751)
Outstanding, ending balance (in shares)	2,007
Options exercisable (in shares)	1,777
Weighted-Average Exercise Price
Outstanding, weighted average exercise, beginning balance (in dollars per share)	$ 2.09
Weighted-average exercise price, options exercised (in dollars per share)	1.18
Expired and/or forfeited, weighted average exercise price (in dollars per share)	2.03
Outstanding, weighted average exercise, ending balance (in dollars per share)	2.24
Options exercisable, weighted average option price per share (in dollars per share)	$ 2.38
Outstanding, weighted average remaining contractual life (years)	6 years 7 months 2 days
Options exercisable, weighted average remaining contractual life (years)	6 years 4 months 24 days
Outstanding, intrinsic value	$ 383	$ 1,372
Options exercisable, intrinsic value	$ 281

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit Activity (Details) - RSUs and PSUs shares in Thousands	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Units
Non-vested, beginning balance (in shares) | shares	7,015
Granted (in shares) | shares	2,557
Vested (in shares) | shares	(611)
Forfeited (in shares) | shares	(1,134)
Unvested, ending balance (in shares) | shares	7,827
Weighted-Average Grant Date Fair Value
Non-vested, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares	$ 1.55
Granted, weighted average grant date fair value (in dollars per share) | $ / shares	1.53
Vested, weighted average grant date fair value (in dollars per share) | $ / shares	2.47
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares	1.63
Non-vested, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares	$ 1.46

Restructuring and Other Relat_3

Restructuring and Other Related Costs - Narrative (Details) - Restructuring Effort 2020 - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 100	$ 974	$ 839
Other additional restructuring costs	$ 0	$ 0

Restructuring and Other Relat_4

Restructuring and Other Related Costs - Restructuring and Other Reserve Activities (Details) - Restructuring Effort 2020 - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Restructuring Reserve [Roll Forward]
Beginning Balance		$ 397	$ 0
Restructuring and other related costs	$ 100	974	839
Cash paid		(1,371)	(442)
Ending Balance	0	0	397
Severance and Other Employee Costs
Restructuring Reserve [Roll Forward]
Beginning Balance		338	0
Restructuring and other related costs		897	780
Cash paid		(1,235)	(442)
Ending Balance	0	0	338
Lease Termination Costs
Restructuring Reserve [Roll Forward]
Beginning Balance		59	0
Restructuring and other related costs		77	59
Cash paid		(136)	0
Ending Balance	$ 0	$ 0	$ 59

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Income Taxes
Unrecognized tax benefits	$ 1	$ 1
Unrecognized tax benefits that would impact effective tax rate	$ 0	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	Jun. 30, 2021USD ($)facilityitem
Other Commitments [Line Items]
Number of leased facilities | facility	2
Number of letters of credit | item	2
Money Market Mutual Funds | Letter of Credit
Other Commitments [Line Items]
Letters of credit	$ 2.3
Restricted cash	$ 2.3

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Payments (Details) $ in Thousands	Jun. 30, 2021USD ($)
Non-cancelable Service Contract Commitments
Remainder of 2021	$ 6,095
2022	10,266
2023	8,183
2024	828
Thereafter	0
Total	$ 25,372