Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
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, $0.0001 Par Value | |
Trading Symbol | SREV | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Small Business | true | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common stock, shares outstanding | 99,938,408 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001310114 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 29,518 | $ 28,507 |
Accounts receivable, net | 37,938 | 43,571 |
Prepaid expenses and other | 7,858 | 8,995 |
Total current assets | 75,314 | 81,073 |
Property and equipment, net | 15,898 | 18,721 |
ROU assets | 23,110 | 23,043 |
Contract acquisition costs | 497 | 558 |
Goodwill | 6,334 | 6,334 |
Other assets | 2,717 | 2,719 |
Total assets | 123,870 | 132,448 |
Current liabilities: | ||
Accounts payable | 1,612 | 832 |
Accrued expenses | 3,299 | 4,152 |
Accrued compensation and benefits | 13,955 | 19,999 |
Revolver | 10,000 | 10,000 |
Operating lease liabilities | 7,740 | 8,614 |
Other current liabilities | 648 | 793 |
Total current liabilities | 37,254 | 44,390 |
Operating lease liabilities, net of current portion | 20,481 | 19,869 |
Other long-term liabilities | 1,180 | 1,155 |
Total liabilities | 58,915 | 65,414 |
Commitments and contingencies (Note 8) | ||
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; 100,059 shares issued and 99,938 shares outstanding as of March 31, 2022; 99,233 shares issued and 99,112 shares outstanding as of December 31, 2021 | 10 | 10 |
Treasury stock | (441) | (441) |
Additional paid-in capital | 388,213 | 385,827 |
Accumulated deficit | (323,710) | (319,328) |
Accumulated other comprehensive income | 883 | 966 |
Total stockholders' equity | 64,955 | 67,034 |
Total liabilities and stockholders' equity | $ 123,870 | $ 132,448 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 100,059,000 | 99,233,000 |
Common stock, shares outstanding (in shares) | 99,938,000 | 99,112,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Operations | ||
Net revenue | $ 48,893 | $ 45,023 |
Cost of revenue | 35,745 | 34,067 |
Gross profit | 13,148 | 10,956 |
Operating expenses: | ||
Sales and marketing | 3,996 | 4,030 |
Research and development | 1,386 | 1,160 |
General and administrative | 11,321 | 12,190 |
Restructuring and other related costs | 920 | |
Total operating expenses | 16,703 | 18,300 |
Loss from operations | (3,555) | (7,344) |
Interest and other expense, net | (178) | (1,160) |
Loss before provision for income taxes | (3,733) | (8,504) |
Provision for income tax expense | (649) | (331) |
Net loss | $ (4,382) | $ (8,835) |
Net loss per common share: | ||
Basic (in dollars per share) | $ (0.04) | $ (0.09) |
Diluted (in dollars per share) | $ (0.04) | $ (0.09) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 99,398 | 97,234 |
Diluted (in shares) | 99,398 | 97,234 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Comprehensive Loss | ||
Net loss | $ (4,382) | $ (8,835) |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments | (83) | 325 |
Other comprehensive (loss) income: | (83) | 325 |
Comprehensive loss | $ (4,465) | $ (8,510) |
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, 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 (loss) income | 325 | 325 | ||||
Stock-based compensation | 2,486 | 2,486 | ||||
Issuance of common stock, RSUs and PSUs (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, 2021 | 99,233 | (121) | ||||
Beginning balance at Dec. 31, 2021 | $ 10 | $ (441) | 385,827 | (319,328) | 966 | 67,034 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (4,382) | (4,382) | ||||
Other comprehensive (loss) income | (83) | (83) | ||||
Stock-based compensation | 2,633 | 2,633 | ||||
Issuance of common stock, RSUs and PSUs (in shares) | 826 | |||||
Net cash paid for payroll taxes on RSU releases | (247) | (247) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 100,059 | (121) | ||||
Ending balance at Mar. 31, 2022 | $ 10 | $ (441) | $ 388,213 | $ (323,710) | $ 883 | $ 64,955 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (4,382) | $ (8,835) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 3,522 | 3,657 |
Amortization of contract acquisition costs | 90 | 167 |
Amortization of ROU assets | 2,051 | 2,391 |
Stock-based compensation | 2,620 | 2,475 |
Restructuring and other related costs | 902 | |
Other | 15 | 265 |
Net changes in operating assets and liabilities: | ||
Accounts receivable, net | 5,557 | 4,131 |
Prepaid expenses and other assets | 1,088 | (2,099) |
Contract acquisition costs | (31) | (51) |
Accounts payable | 808 | 3,952 |
Accrued compensation and benefits | (5,913) | (3,673) |
Operating lease liabilities | (2,359) | (2,738) |
Accrued expenses | (828) | (511) |
Other liabilities | (59) | 504 |
Net cash provided by operating activities | 2,179 | 537 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (741) | (1,019) |
Net cash used in investing activities | (741) | (1,019) |
Cash flows from financing activities: | ||
Repayment on finance lease obligations | (52) | (161) |
Proceeds from Revolver | 10,000 | |
Repayment of Revolver | (10,000) | |
Proceeds from issuance of common stock | 132 | |
Payments related to minimum tax withholdings on RSU releases | (247) | |
Net cash used in financing activities | (299) | (29) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (128) | 650 |
Net change in cash and cash equivalents and restricted cash | 1,011 | 139 |
Cash and cash equivalents and restricted cash, beginning of period | 30,801 | 36,326 |
Cash and cash equivalents and restricted cash, end of period | 31,812 | 36,465 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 87 | 105 |
Supplemental disclosures of non-cash activities: | ||
Purchases of property and equipment accrued in accounts payable and accrued expenses | 2 | 9 |
ROU assets obtained in exchange for new lease liabilities | $ 2,334 | $ 618 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2022 | |
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 | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 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, 2021 filed with the SEC on February 23, 2022. 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, 2021, 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 and Russia’s invasion of Ukraine 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 and Russia’s invasion of Ukraine, 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, 2021. 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 “Prepaid expenses and other” and "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 March 31, 2022 and December 31, 2021. The Company did not have any other financial instruments or debt measured at fair value as of March 31, 2022 and December 31, 2021. There were no transfers between levels during the three months ended March 31, 2022 and 2021. 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 expects to adopt this standard effective January 1, 2023. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt | |
Debt | Note 3 — Debt Revolving Line of Credit 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 subject to the terms and conditions set forth 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. As of March 31, 2022, the Company had $10.0 million of borrowings under the Revolver in the 2021 Credit Agreement through a six-month BSBY borrowing at an effective interest rate of 3.04% maturing August 2022. An additional $14.6 million was available for borrowing under the Revolver as of March 31, 2022. The BSBY 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 BSBY borrowing. 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. The 2021 Credit Agreement has financial covenants that the Company was in compliance with as of March 31, 2022. Interest Expense Unamortized debt issuance costs related to the 2021 Revolver were $0.1 million as of March 31, 2022 and December 31, 2021. Interest expense related to the amortization of debt issuance costs and interest expense associated with the Company’s debt obligation was $0.1 million for the three months ended March 31, 2022 and 2021. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
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 December 2032. Certain office leases include the option to extend the term between one Supplemental income statement information related to leases was as follows: For the Three Months Ended March 31, 2022 2021 (in thousands) Operating lease cost $ 2,458 $ 2,941 Finance lease cost: Amortization of leased assets 53 159 Interest on lease liabilities 1 11 Total finance lease cost 54 170 Sublease income (887) (1,098) Net lease cost $ 1,625 $ 2,013 Supplemental balance sheet information related to leases was as follows: March 31, 2022 December 31, 2021 (in thousands) Operating leases: ROU assets $ 23,110 $ 23,043 Operating lease liabilities $ 7,740 $ 8,614 Operating lease liabilities, net of current portion 20,481 19,869 Total operating lease liabilities $ 28,221 $ 28,483 Finance leases: Property and equipment $ 2,852 $ 2,861 Accumulated depreciation (2,442) (2,397) Property and equipment, net $ 410 $ 464 Other current liabilities $ 11 $ 63 Other long-term liabilities — — Total finance lease liabilities $ 11 $ 63 Lease term and discount rate information was as follows: For the Three Months Ended March 31, 2022 2021 Weighted-average remaining lease term (in years): Operating lease 5.6 5.6 Finance lease 0.2 0.8 Weighted-average discount rate: Operating lease 5.9 % 6.2 % Finance lease 6.5 % 6.5 % Maturities of lease liabilities were as follows as of March 31, 2022: Operating Leases Operating Sublease Finance Leases Total (in thousands) Remainder of 2022 $ 7,548 $ (2,646) $ 11 $ 4,913 2023 5,738 (1,399) — 4,339 2024 4,376 — — 4,376 2025 4,016 — — 4,016 2026 3,300 — — 3,300 Thereafter 8,398 — — 8,398 Total lease payments 33,376 (4,045) 11 29,342 Less: interest (5,155) — — (5,155) Total (1) $ 28,221 $ (4,045) $ 11 $ 24,187 (1) In March 2022 the Company entered into a ten-year lease agreement in Nashville, Tennessee with future undiscounted lease payments, net of tenant improvement reimbursements, totaling $10.1 million. This lease had not yet commenced, and is not included in the lease liabilities, as of March 31, 2022. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 (in thousands) Selling services $ 48,281 $ 44,328 Professional services 612 695 Total revenue $ 48,893 $ 45,023 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 March 31, 2022 2021 (in thousands) NALA $ 25,325 $ 25,334 EMEA 15,776 12,769 APJ 7,792 6,920 Total revenue $ 48,893 $ 45,023 Revenue by Contract Pricing For the Three Months Ended March 31, 2022 2021 (in thousands) Variable consideration $ 32,321 $ 33,211 Fixed consideration 16,572 11,812 Total revenue $ 48,893 $ 45,023 Contract Balances As of March 31, 2022 and December 31, 2021, contract liabilities were $0.4 million and $0.5 million, respectively. Transaction Price Allocated to Remaining Performance Obligations As of March 31, 2022, assuming none of the Company’s current contracts with fixed consideration are renewed, the Company estimates receiving approximately $33.8 million in future selling services fixed consideration and approximately $0.4 million in professional services fixed consideration, the majority to be received within one year. Contract Acquisition Costs As of March 31, 2022 and December 31, 2021, capitalized contract acquisition costs were $0.5 million and $0.6 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 March 31, 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 6 — Stock-Based Compensation 2022 PSU Awards During March 2022, 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 2022 and a rTSR modifier based on the Company’s rTSR for fiscal years 2022, 2023, and 2024 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 $1.1 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. 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 March 31, 2022 2021 (in thousands) Cost of revenue $ 138 $ 130 Sales and marketing 346 191 Research and development 24 15 General and administrative 2,112 2,139 Total stock-based compensation $ 2,620 $ 2,475 The above table does not include capitalized stock-based compensation related to internal-use software that was insignificant for the three months ended March 31, 2022 and 2021. 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, 2021 1,876 $ 2.18 $ 16 Expired and/or forfeited (17) $ 4.42 Outstanding as of March 31, 2022 1,859 $ 2.16 5.91 $ 210 Exercisable as of March 31, 2022 1,771 $ 2.22 5.84 $ 179 As of March 31, 2022, there was $0.02 million of unrecognized compensation expense related to previously granted stock options, which is expected to be recognized over a weighted-average period of 0.6 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, 2021 8,231 $ 1.49 Granted 2,165 $ 1.43 Vested (1) (1,006) $ 1.65 Forfeited (271) $ 1.46 Non-vested as of March 31, 2022 9,119 $ 1.46 (1) 826 shares of common stock were issued for RSUs and PSUs vested and the remaining 180 shares were withheld for taxes. As of March 31, 2022, 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 4.0 million and 1.2 million shares for the three months ended March 31, 2022 and 2021, respectively, because their effect would have been anti-dilutive. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 7 — 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. and Ireland because those losses are offset by a full valuation allowance. The tax years 2017 through 2021 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 March 31, 2022 and December 31, 2021, 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 months ended March 31, 2022 and 2021 interest and penalties recognized were insignificant. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 8 — 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 within “Prepaid expenses and other” and "Other assets" in the Consolidated Balance Sheets. Non-cancelable Service Contract Commitments The Company enters into various purchase obligations in the ordinary course of business, generally short-term in nature. Those that are binding primarily relate to non-cancelable service contract commitments. There have not been any significant changes in these commitments since what was disclosed in the last annual report. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events | |
Subsequent Event | Note 9 — Subsequent Event On May 6, 2022, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with . Pursuant to the Merger Agreement, and subject to the terms and conditions set forth therein, Acquisition Sub will merge with and into the Company, which we refer to as the “Merger”, with the Company continuing as the surviving corporation in the Merger and a wholly-owned subsidiary of the Acquirer. In the event the Merger is completed, except as otherwise provided in the Merger Agreement, each share of our common stock issued and outstanding immediately prior to the Effective Time shall be converted into the right to receive $1.50 per share in cash, without interest (the “Merger Consideration”). Consummation of the Merger is subject to customary closing conditions, including, among other things, the adoption of the Merger Agreement by the holders of a majority of the outstanding shares of our common stock (“Requisite Stockholder Approval”). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 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, 2021 filed with the SEC on February 23, 2022. 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, 2021, 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 and Russia’s invasion of Ukraine 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 and Russia’s invasion of Ukraine, 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, 2021. 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 “Prepaid expenses and other” and "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 March 31, 2022 and December 31, 2021. The Company did not have any other financial instruments or debt measured at fair value as of March 31, 2022 and December 31, 2021. There were no transfers between levels during the three months ended March 31, 2022 and 2021. |
New Accounting Standards Issued but Not Yet Adopted | 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 expects to adopt this standard effective January 1, 2023. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 (in thousands) Operating lease cost $ 2,458 $ 2,941 Finance lease cost: Amortization of leased assets 53 159 Interest on lease liabilities 1 11 Total finance lease cost 54 170 Sublease income (887) (1,098) Net lease cost $ 1,625 $ 2,013 Lease term and discount rate information was as follows: For the Three Months Ended March 31, 2022 2021 Weighted-average remaining lease term (in years): Operating lease 5.6 5.6 Finance lease 0.2 0.8 Weighted-average discount rate: Operating lease 5.9 % 6.2 % Finance lease 6.5 % 6.5 % |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: March 31, 2022 December 31, 2021 (in thousands) Operating leases: ROU assets $ 23,110 $ 23,043 Operating lease liabilities $ 7,740 $ 8,614 Operating lease liabilities, net of current portion 20,481 19,869 Total operating lease liabilities $ 28,221 $ 28,483 Finance leases: Property and equipment $ 2,852 $ 2,861 Accumulated depreciation (2,442) (2,397) Property and equipment, net $ 410 $ 464 Other current liabilities $ 11 $ 63 Other long-term liabilities — — Total finance lease liabilities $ 11 $ 63 |
Summary of Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows as of March 31, 2022: Operating Leases Operating Sublease Finance Leases Total (in thousands) Remainder of 2022 $ 7,548 $ (2,646) $ 11 $ 4,913 2023 5,738 (1,399) — 4,339 2024 4,376 — — 4,376 2025 4,016 — — 4,016 2026 3,300 — — 3,300 Thereafter 8,398 — — 8,398 Total lease payments 33,376 (4,045) 11 29,342 Less: interest (5,155) — — (5,155) Total (1) $ 28,221 $ (4,045) $ 11 $ 24,187 (1) In March 2022 the Company entered into a ten-year lease agreement in Nashville, Tennessee with future undiscounted lease payments, net of tenant improvement reimbursements, totaling $10.1 million. This lease had not yet commenced, and is not included in the lease liabilities, as of March 31, 2022. |
Operating Lease, Lease Income | Maturities of lease liabilities were as follows as of March 31, 2022: Operating Leases Operating Sublease Finance Leases Total (in thousands) Remainder of 2022 $ 7,548 $ (2,646) $ 11 $ 4,913 2023 5,738 (1,399) — 4,339 2024 4,376 — — 4,376 2025 4,016 — — 4,016 2026 3,300 — — 3,300 Thereafter 8,398 — — 8,398 Total lease payments 33,376 (4,045) 11 29,342 Less: interest (5,155) — — (5,155) Total (1) $ 28,221 $ (4,045) $ 11 $ 24,187 (1) In March 2022 the Company entered into a ten-year lease agreement in Nashville, Tennessee with future undiscounted lease payments, net of tenant improvement reimbursements, totaling $10.1 million. This lease had not yet commenced, and is not included in the lease liabilities, as of March 31, 2022. |
Summary of Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows as of March 31, 2022: Operating Leases Operating Sublease Finance Leases Total (in thousands) Remainder of 2022 $ 7,548 $ (2,646) $ 11 $ 4,913 2023 5,738 (1,399) — 4,339 2024 4,376 — — 4,376 2025 4,016 — — 4,016 2026 3,300 — — 3,300 Thereafter 8,398 — — 8,398 Total lease payments 33,376 (4,045) 11 29,342 Less: interest (5,155) — — (5,155) Total (1) $ 28,221 $ (4,045) $ 11 $ 24,187 (1) In March 2022 the Company entered into a ten-year lease agreement in Nashville, Tennessee with future undiscounted lease payments, net of tenant improvement reimbursements, totaling $10.1 million. This lease had not yet commenced, and is not included in the lease liabilities, as of March 31, 2022. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 (in thousands) Selling services $ 48,281 $ 44,328 Professional services 612 695 Total revenue $ 48,893 $ 45,023 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 March 31, 2022 2021 (in thousands) NALA $ 25,325 $ 25,334 EMEA 15,776 12,769 APJ 7,792 6,920 Total revenue $ 48,893 $ 45,023 Revenue by Contract Pricing For the Three Months Ended March 31, 2022 2021 (in thousands) Variable consideration $ 32,321 $ 33,211 Fixed consideration 16,572 11,812 Total revenue $ 48,893 $ 45,023 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 (in thousands) Cost of revenue $ 138 $ 130 Sales and marketing 346 191 Research and development 24 15 General and administrative 2,112 2,139 Total stock-based compensation $ 2,620 $ 2,475 |
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, 2021 1,876 $ 2.18 $ 16 Expired and/or forfeited (17) $ 4.42 Outstanding as of March 31, 2022 1,859 $ 2.16 5.91 $ 210 Exercisable as of March 31, 2022 1,771 $ 2.22 5.84 $ 179 |
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, 2021 8,231 $ 1.49 Granted 2,165 $ 1.43 Vested (1) (1,006) $ 1.65 Forfeited (271) $ 1.46 Non-vested as of March 31, 2022 9,119 $ 1.46 (1) 826 shares of common stock were issued for RSUs and PSUs vested and the remaining 180 shares were withheld for taxes. |
The Company (Details)
The Company (Details) | 3 Months Ended |
Mar. 31, 2022country | |
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 | Mar. 31, 2022USD ($)location | Dec. 31, 2021USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of leased facilities | location | 2 | |
Level 1 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Restricted cash | $ | $ 2.3 | $ 2.3 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Revolver | $ 10,000 | $ 10,000 | ||
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] | ||||
Line of credit facility, maximum borrowing capacity | $ 35,000 | |||
Additional borrowing capacity | 10,000 | |||
Revised maximum borrowing capacity | $ 45,000 | |||
Revolver | $ 10,000 | |||
Effective interest rate | 3.04% | |||
Line of credit facility, remaining borrowing capacity | $ 14,600 | |||
Unamortized debt issuance cost | 100 | |||
Interest expense | $ 100 | $ 100 |
Leases - Supplemental Income St
Leases - Supplemental Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases | ||
Operating lease cost | $ 2,458 | $ 2,941 |
Finance lease cost: | ||
Amortization of leased assets | 53 | 159 |
Interest on lease liabilities | 1 | 11 |
Total finance lease cost | 54 | 170 |
Sublease income | (887) | (1,098) |
Net lease cost | $ 1,625 | $ 2,013 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
ROU assets | $ 23,110 | $ 23,043 |
Operating lease liabilities | 7,740 | 8,614 |
Operating lease liabilities, net of current portion | 20,481 | 19,869 |
Total operating lease liabilities | 28,221 | 28,483 |
Finance leases: | ||
Property and equipment | 2,852 | 2,861 |
Accumulated depreciation | (2,442) | (2,397) |
Property and equipment, net | 410 | 464 |
Other current liabilities | 11 | 63 |
Other long-term liabilities | 0 | 0 |
Total finance lease liabilities | $ 11 | $ 63 |
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) | Mar. 31, 2022 | Mar. 31, 2021 |
Weighted-average remaining lease term (in years): | ||
Operating lease | 5 years 7 months 6 days | 5 years 7 months 6 days |
Finance lease | 2 months 12 days | 9 months 18 days |
Weighted-average discount rate: | ||
Operating lease | 5.90% | 6.20% |
Finance lease | 6.50% | 6.50% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Remainder of 2022 | $ 7,548 | |
2023 | 5,738 | |
2024 | 4,376 | |
2025 | 4,016 | |
2026 | 3,300 | |
Thereafter | 8,398 | |
Total lease payments | 33,376 | |
Less: interest | (5,155) | |
Total | 28,221 | $ 28,483 |
Operating Sublease | ||
Remainder of 2022 | (2,646) | |
2023 | (1,399) | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total | (4,045) | |
Less: Interest | 0 | |
Finance Leases | ||
Remainder of 2022 | 11 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payments | 11 | |
Less: interest | 0 | |
Total | 11 | $ 63 |
Total | ||
Remainder of 2022 | 4,913 | |
2023 | 4,339 | |
2024 | 4,376 | |
2025 | 4,016 | |
2026 | 3,300 | |
Thereafter | 8,398 | |
Total lease payments | 29,342 | |
Less: interest | (5,155) | |
Total | $ 24,187 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
TENNESSEE | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
Lessee, Operating Lease, Lease Not yet Commenced, Liability, Undiscounted Excess Amount | $ 10.1 |
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 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 48,893 | $ 45,023 |
Variable consideration | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 32,321 | 33,211 |
Fixed consideration | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 16,572 | 11,812 |
NALA | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 25,325 | 25,334 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 15,776 | 12,769 |
APJ. | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 7,792 | 6,920 |
Selling services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 48,281 | 44,328 |
Professional services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 612 | $ 695 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liability | $ 0.4 | $ 0.5 | |
Contract acquisition asset | 0.5 | $ 0.6 | |
Amortization of contract acquisition costs | 0.1 | $ 0.2 | |
Selling services | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Remaining performance obligation | 33.8 | ||
Professional services | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Remaining performance obligation | $ 0.4 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 2,620 | $ 2,475 |
Cost of revenue. | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 138 | 130 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 346 | 191 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 24 | 15 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 2,112 | $ 2,139 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Shares | ||
Outstanding, beginning balance (in shares) | 1,876 | |
Expired and/or forfeited (in shares) | (17) | |
Outstanding, ending balance (in shares) | 1,859 | |
Exercisable (in shares) | 1,771 | |
Weighted-Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 2.18 | |
Expired and/or forfeited (in dollars per share) | 4.42 | |
Outstanding, ending balance (in dollars per share) | 2.16 | |
Exercisable (in dollars per share) | $ 2.22 | |
Outstanding, weighted average remaining contractual life (years) | 5 years 10 months 28 days | |
Exercisable, weighted average remaining contractual life (years) | 5 years 10 months 2 days | |
Outstanding, intrinsic value | $ 210 | $ 16 |
Exercisable, intrinsic value | $ 179 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - RSUs and PSUs shares in Thousands | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Units | |
Non-vested, beginning balance (in shares) | 8,231 |
Granted (in shares) | 2,165 |
Vested (in shares) | (1,006) |
Forfeited (in shares) | (271) |
Non-vested, ending balance (in shares) | 9,119 |
Weighted-Average Grant Date Fair Value | |
Non-vested, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 1.49 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 1.43 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 1.65 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 1.46 |
Non-vested, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 1.46 |
Common stock issued (in shares) | 826 |
Shares withheld for tax purposes (in shares) | 180 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2022USD ($)itemshares | Mar. 31, 2022USD ($)itemshares | Mar. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Of Performance Goals | item | 2 | 2 | |
Antidilutive shares excluded from diluted earnings per share calculation (in shares) | shares | 4,000 | 1,200 | |
PSUs | Certain Executives | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 800 | ||
Fair value of shares granted | $ | $ 1,100 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, stock options | $ | 20 | $ 20 | |
Unrecognized compensation expense, weighted-average period recognized | 7 months 6 days | ||
RSUs and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 2,165 | ||
Unrecognized compensation expense, weighted-average period recognized | 1 year 8 months 12 days | ||
Unrecognized compensation expense, RSUs and PSUs | $ | $ 6,100 | $ 6,100 | |
Minimum | PSUs | Certain Executives | |||
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% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
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 | Mar. 31, 2022USD ($)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 |
Subsequent Event (Details)
Subsequent Event (Details) | May 06, 2022$ / shares |
Subsequent Event | Concentrix Corporation [Member] | ServiceSource International, Inc. [Member] | |
Subsequent Event [Line Items] | |
Business Acquisition, Share Price | $ 1.50 |