Avalara (AVLR) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 28, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Trading Symbol	AVLR
Entity Registrant Name	AVALARA, INC.
Entity Central Index Key	0001348036
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		87,859,718
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-38525
Entity Tax Identification Number	91-1995935
Entity Address, Address Line One	255 South King Street
Entity Address, Address Line Two	Suite 1800
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98104
City Area Code	206
Local Phone Number	826-4900
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, Par Value $0.0001 Per Share
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	WA
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 1,481,853	$ 1,514,064
Restricted cash	37,700	37,700
Trade accounts receivable—net of allowance for doubtful accounts of $5,772 and $5,803, respectively	113,469	114,248
Deferred commissions	17,296	16,364
Prepaid expenses and other current assets	39,314	29,267
Total current assets before customer fund assets	1,689,632	1,711,643
Funds held from customers	64,359	62,509
Receivable from customers—net of allowance of $507 and $439, respectively	1,579	1,472
Total current assets	1,755,570	1,775,624
Noncurrent assets:
Deferred commissions	53,471	52,155
Operating lease right-of-use assets—net	43,225	44,385
Property and equipment—net	49,368	46,464
Intangible assets—net	89,775	96,818
Goodwill	671,431	672,381
Other noncurrent assets	10,827	10,704
Total assets	2,673,667	2,698,531
Current liabilities:
Trade payables	18,211	16,683
Accrued expenses	69,102	109,792
Deferred revenue	302,496	280,816
Accrued purchase price related to acquisitions	52,683	51,476
Accrued earnout liabilities	37,390	33,151
Operating lease liabilities	11,847	11,453
Total current liabilities before customer fund obligations	491,729	503,371
Customer fund obligations	66,368	64,302
Total current liabilities	558,097	567,673
Noncurrent liabilities:
Convertible senior notes—net	962,144	961,259
Deferred revenue	1,114	2,139
Accrued purchase price related to acquisitions	6,715	7,988
Accrued earnout liabilities	59,706	81,485
Operating lease liabilities	43,549	45,614
Deferred tax liability	5,383	5,158
Other noncurrent liabilities	751	761
Total liabilities	1,637,459	1,672,077
Commitments and contingencies	0	0
Shareholders' equity:
Preferred stock, $0.0001 par value – no shares issued and outstanding at March 31, 2022, and December 31, 2021, and 20,000 shares authorized as of March 31, 2022, and December 31, 2021	0	0
Common stock, $0.0001 par value – 87,785 and 87,087 shares issued and outstanding at March 31, 2022, and December 31, 2021, respectively, and 600,000 shares authorized as of March 31, 2022, and December 31, 2021	9	9
Additional paid-in capital	1,776,400	1,732,742
Accumulated other comprehensive loss	(4,775)	(3,428)
Accumulated deficit	(735,426)	(702,869)
Total shareholders’ equity	1,036,208	1,026,454
Total liabilities and shareholders' equity	$ 2,673,667	$ 2,698,531

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Trade accounts receivable, allowance for doubtful accounts	$ 5,772	$ 5,803
Receivable from customers, allowance	$ 507	$ 439
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, shares authorized	20,000,000	20,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares, issued	87,785,000	87,087,000
Common stock, shares, outstanding	87,785,000	87,087,000
Common stock, shares authorized	600,000,000	600,000,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Revenues	$ 204,530	$ 153,601
Cost of revenue:
Cost of revenues	60,126	44,496
Gross profit	144,404	109,105
Operating expenses:
Research and development	50,852	39,274
Sales and marketing	86,447	64,093
General and administrative	42,194	31,199
Total operating expenses	179,493	134,566
Operating loss	(35,089)	(25,461)
Other income (expense):
Fair value changes in earnout liabilities	4,001	(1,350)
Interest income	186	24
Interest expense	(1,496)
Other income (expense), net	126	(924)
Total other income (expense), net	2,817	(2,250)
Loss before income taxes	(32,272)	(27,711)
Provision for income taxes	(285)	(2,357)
Net loss	$ (32,557)	$ (30,068)
Net loss per share attributable to common shareholders, basic and diluted	$ (0.37)	$ (0.35)
Weighted average shares of common stock outstanding, basic and diluted	87,463	85,436
Subscription and Returns
Revenue:
Revenues	$ 186,866	$ 139,318
Cost of revenue:
Cost of revenues	50,077	38,033
Professional Services
Revenue:
Revenues	17,664	14,283
Cost of revenue:
Cost of revenues	$ 10,049	$ 6,463

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (32,557)	$ (30,068)
Other comprehensive loss — Foreign currency translation	(1,347)	(390)
Total comprehensive loss	$ (33,904)	$ (30,458)

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	$ (32,557)	$ (30,068)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	32,650	18,857
Depreciation and amortization	11,132	7,071
Amortization of debt issuance costs	885	0
Impairment of capitalized cloud computing costs	0	345
Deferred income tax expense	225	2,028
Non-cash operating lease costs	2,523	2,175
Fair value changes in earnout liabilities	(4,001)	1,350
Non-cash bad debt expense	521	582
Other	(16)	(389)
Changes in operating assets and liabilities:
Trade accounts receivable	326	(14,695)
Prepaid expenses and other current assets	(9,946)	(9,186)
Deferred commissions	(2,248)	(2,360)
Other noncurrent assets	(123)	541
Trade payables	2,338	(1,895)
Accrued expenses	(42,371)	(15,634)
Deferred revenue	20,655	15,841
Operating lease liabilities	(3,059)	(2,810)
Net cash used in operating activities	(23,066)	(28,247)
Cash flows from investing activities:
Purchase of property and equipment	(2,148)	(1,366)
Capitalized software development costs	(5,905)	(2,311)
Cash paid for acquisitions of businesses, net of cash and restricted cash equivalents acquired	0	(2,167)
Net cash used in investing activities	(8,053)	(5,844)
Cash flows from financing activities:
Proceeds from exercise of stock options	2,281	5,529
Proceeds from purchases of stock under employee stock purchase plan	8,006	7,088
Acquisition-related post-closing payments	0	(1,971)
Payments related to business combination earnouts	(10,770)	0
Payments related to asset acquisition earnouts	(593)	(690)
Payments on financed asset purchases	(61)	0
Net increase in customer fund obligations	2,066	3,598
Net cash provided by financing activities	929	13,554
Foreign currency effect	(160)	6
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents	(30,350)	(20,531)
Cash, cash equivalents, restricted cash, and restricted cash equivalents—Beginning of period	1,613,903	761,844
Cash, cash equivalents, restricted cash, and restricted cash equivalents—End of period	1,583,553	741,313
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets, end of period:
Cash and cash equivalents	1,481,853	638,794
Restricted cash	37,700	68,886
Restricted cash equivalents—funds held from customers	64,000	33,633
Supplemental cash flow disclosures:
Cash paid for interest expense	1,140	0
Cash paid for operating lease liabilities	4,088	3,493
Cash paid for income taxes	506	153
Non-cash investing and financing activities:
Accrued value of earnout related to acquisitions of businesses	0	(1,802)
Accrued purchase of intangible assets	304	178
Property and equipment additions in accounts payable and accrued expenses	491	1,263
Capitalized internally developed software costs included in accounts payable and accrued expenses	482	0
Stock-based compensation costs capitalized to internally developed software	481	225
Operating lease right-of-use assets in exchange for lease obligations	$ 1,362	$ 43

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Nature of Operations Avalara, Inc. (the “Company”) provides software solutions that help businesses of all types and sizes comply with transaction tax requirements worldwide. The Company offers a broad and growing suite of compliance solutions for transaction taxes and other product-related taxes such as sales and use tax, value-added tax (“VAT”), fuel excise tax, beverage alcohol, cross-border taxes (including tariffs and duties), lodging tax, communications tax, and insurance premium The Company has wholly owned subsidiaries outside of the U.S. in Brazil, Canada, Europe, and India, which conduct sales and operations and provide business development, software development, and support services. Interim Financial Information The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as amended by the Form 10-K/A for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on May 5, 2022 (the “Amended 2021 Annual Report”). The accompanying interim consolidated balance sheet as of March 31, 2022, the consolidated interim statements of operations, consolidated statements of comprehensive loss, and the consolidated statements of cash flows for the three months ended March 31, 2022, are unaudited. The unaudited interim consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the consolidated financial statements. The operating results for the three months ended March 31, 2022, are not necessarily indicative of the results expected for the full year ending December 31, 2022. Prior Period Restatements and Adjustments While preparing the financial statements for the first quarter of 2022, the Company discovered an error in its recognition of stock-based compensation expense for restricted stock units (“RSUs”) impacting previously reported interim and annual consolidated financial statements. In the previously presented consolidated financial statements, the correction resulted in an increase of $0.1 million to stock-based compensation and an increase of $0.1 million to net loss on the consolidated statement of operations and the consolidated statement of cash flows for the three months ended March 31, 2021. The correction increased net loss and total comprehensive loss by $0.1 million on the consolidated statement of comprehensive loss for the three months ended March 31, 2021. The correction did not change total net cash used in operating activities on the consolidated statement of cashflows for the three months ended March 31, 2021. The correction increased additional paid-in capital and accumulated deficit by $0.1 million, with no change to total shareholders’ equity, on the consolidated statement of shareholders’ equity as of March 31, 2021. An explanation of the impact on the consolidated financial statements is contained in “Note 15—Correction of Previously Issued Consolidated Financial Statements” to the accompanying consolidated financial statements included in the Amended 2021 Annual Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation. Principles of Consolidation The accompanying consolidated financial statements include those of the Company, its subsidiaries, and a variable interest entity for which the Company is the primary beneficiary, after elimination of all intercompany accounts and transactions. Segments The Company operates its business as one operating segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, the Company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and judgments related to revenue are described below in the Revenue Recognition Accounting Policy. Significant estimates impacting expenses include: expected credit losses associated with the allowance for doubtful accounts; the measurement of fair values of stock-based compensation award grants; the expected payout level of performance share unit grants; the expected earnout obligations in connection with acquisitions; the expected term of the customer relationship for capitalized contract cost amortization; the valuation and useful lives of acquired intangible assets; the valuation of the fair value of reporting units for analyzing goodwill; and the capitalization and useful life of capitalized software development costs. Actual results could materially differ from those estimates. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 : Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 : Inputs are quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 : Inputs are unobservable inputs based on the Company’s assumptions and valuation techniques used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The Company’s assessment of the significance of an input to the fair value measurement requires judgment, which may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash equivalents, restricted cash equivalents, trade accounts receivable, trade payables, and accrued expenses, due to their short-term nature. The Company has measured the fair value of money market funds and available-for-sale securities based on quoted prices in active markets for identical assets and liabilities. T he Company carries its Convertible Senior Notes at par value less unamortized debt issuance costs on its consolidated balance sheets and presents the fair value for disclosure purposes only. Customer Funds Assets and Obligations The Company has established a Delaware statutory trust (the “Customer Trust”) and appointed a federally insured bank as trustee, and the Customer Trust holds certain funds provided by its customers pending remittance to tax authorities. The Company is the sole beneficial owner of the Customer Trust. The Customer Trust is intended to be a bankruptcy-remote legal entity and meets the criteria in Accounting Standards Codification (“ASC”) Topic 810, Consolidation In 2021, certain customers began to remit tax payments to the Customer Trust with almost all customer funds remitted to and held by the Customer Trust as of December 31, 2021. Funds held from customers represent restricted cash equivalents and available-for-sale securities that, based upon the Company’s intent, are restricted solely for satisfying the obligations to remit funds relating to the Company’s tax remittance services. Customer fund obligations represent the Company’s contractual obligations to remit funds to satisfy customers’ tax obligations and are recorded on the consolidated balance sheets at the time that the Company or the Customer Trust collects funds from customers. The following table details funds held from customers and customer fund obligations held by the Company and by the Customer Trust as of March 31, 2022 March 31, December 31, 2022 2021 Funds held from customers (current assets): Restricted cash equivalents – Company $ 647 $ 13 Restricted cash equivalents – Customer Trust 63,353 62,126 Available-for-sale securities – Customer Trust 359 370 Funds held from customers $ 64,359 $ 62,509 Customer fund obligations (current liabilities): Customer fund obligations – Company 66,368 64,302 Customer fund obligations $ 66,368 $ 64,302 Receivable from customers, net was $1.6 million and $1.5 million as of March 31, 2022, and December 31, 2021, respectively. Business Combinations and Goodwill The Company’s identifiable assets acquired and liabilities assumed in a business combination are recorded at their acquisition date fair values, which may be considered preliminary and subject to adjustment during the measurement period, which is up to one year from the acquisition date. The valuation requires management to make significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to: • future expected cash flows from customer agreements, customer lists, distribution agreements, non-compete agreements, and proprietary content and technology; • assumptions about the length of time the brand will continue to be used in the Company’s suite of solutions; • royalty rates used to estimate the fees that could be charged to license the proprietary content and technology; and • discount rates used to determine the present value of recognized assets and liabilities. The Company’s estimates of fair value are based upon assumptions it believes to be reasonable, but that are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate, and unanticipated events and circumstances may occur. Goodwill is calculated as the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Acquisition-related costs, including advisory, legal, accounting, valuation, and other costs, are expensed in the periods in which these costs are incurred. The results of operations of an acquired business are included in the consolidated financial statements beginning at the acquisition date. Goodwill is tested for impairment annually on October 31, or in the event of certain occurrences. There was no goodwill impairment recorded for the three months ended March 31, 2022 or 2021. The Company estimates the fair value of the earnout liabilities related to business combinations using various valuation approaches, as well as significant unobservable inputs, reflecting the Company’s assessment of the assumptions market participants would use to value these liabilities. Following final determination of the acquisition date fair value, the fair value of the earnout is remeasured each reporting period, with any change in the value recorded as fair value changes in earnout liabilities in the consolidated statements of operation. Acquired Intangible Assets Acquired intangible assets consist of developed technology, including in-process research and development (“IPR&D”), customer relationships, backlog, database content, noncompetition agreements, and tradenames and trademarks, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. IPR&D is initially capitalized at fair value as a developed technology intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, it is amortized over the asset’s estimated useful life. The Company recognizes an earnout liability for acquisitions of intangible assets that are accounted for as an asset acquisition when the liability is earned and the amount is known. The earnout liability is capitalized as part of the cost of the assets acquired and amortized over the remaining useful life of the asset. Asset acquisition-related costs, primarily legal fees, are capitalized and included in the cost basis of the intangible asset when incurred. Capitalized Software Software development costs for internal-use software (i.e., cloud-based software solutions) are capitalized once the project is in the application development stage in accordance with the accounting guidance for internal-use software. These capitalized costs include external direct costs of services consumed in developing or obtaining the software and personnel expenses for employees who are directly associated with the development. Capitalization of these costs concludes once the project is substantially complete, and the software is ready for its intended purpose. Post-configuration training and maintenance costs are expensed as incurred. For the , $5.4 million and $2.5 million of software development costs were capitalized, respectively. Capitalized software development costs are amortized on a straight-line basis over the estimated useful life, generally 3 to 6 years. Software development costs are tested for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets In circumstances where software is developed for both cloud-based software solutions and for the purpose of being sold, leased, or otherwise marketed (i.e., customer hosted software), capitalization of development costs occurs after technological feasibility of the software is established and continues until the product is available for general release to customers. Since the Company’s developed software is available for general release concurrent with the establishment of technological feasibility, development costs are not capitalized in these circumstances. Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. An impairment is recognized in the event the carrying value of such assets is not recoverable. If the carrying value is not recoverable, the fair value is determined, and an impairment is recognized for the amount by which the carrying value exceeds the fair value. No impairment of long-lived assets occurred in the three months ended March 31, 2022 or 2021. L eases Leases arise from contracts which convey the right to control the use of identified property or equipment for a period of time in exchange for consideration. The Company’s leasing arrangements are primarily for office space used to conduct operations. The Company determines whether an arrangement is or contains a lease at the inception date, based on whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. Leases commence when the lessor makes the asset available for use. Leases are classified at commencement as either operating or finance leases. All the Company’s leases are classified as operating leases. Rent expense for operating leases is recognized on the straight-line method over the term of the agreement beginning on the lease commencement date. Lease-related costs, which are variable rather than fixed, are expensed in the period incurred. Variable lease costs consist primarily of common area maintenance and utilities costs for the Company’s office spaces that are due based on the actual costs incurred by the landlord. Lease payments that depend on an index or a rate are measured using the index or rate at the commencement date and are included in operating lease costs. Subsequent increases to lease payments due to a change in the index or rate are expensed as a variable lease cost. Convertible Senior Notes In August 2021, the Company completed a private offering of $977.5 million principal amount of 0.25% convertible senior notes due 2026 (the “2026 Notes”). The 2026 Notes are accounted for as debt, with no bifurcation of the embedded conversion feature. Debt issuance costs related to the Company’s issuance of the 2026 Notes consist primarily of purchaser’s discounts, commissions, and related costs. The debt issuance costs were recorded as a direct deduction from the liability associated with the 2026 Notes on the consolidated balance sheet and are amortized to interest expense over the term of the 2026 Notes. In connection with the offering of the 2026 Notes, the Company purchased capped calls from certain financial institutions with respect to its common stock. As the capped calls are both legally detachable and separately exercisable from the 2026 Notes, the Company accounts for the capped calls separately from the 2026 Notes. The capped calls are indexed to the Company’s own common stock and classified in stockholder’s equity. As such, the premiums paid for the capped calls have been included as a net reduction to additional paid-in capital in the consolidated balance sheet as of March 31, 2022, and December 31, 2021. Income Taxes The Company’s deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and income tax basis of assets and liabilities and are measured using the tax rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. The Company assesses its income tax positions and records a tax benefit or expense based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. The Company will recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Judgment is required in assessing the future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact the consolidated financial statements. Revenue Recognition The Company primarily generates revenue from fees paid for subscriptions to tax compliance solutions and fees paid for services performed in preparing and filing tax returns on behalf of its customers. Amounts that have been invoiced are recorded in trade accounts receivable and deferred revenue, contract liabilities, or revenue, depending upon whether the revenue recognition criteria have been met. Revenue is recognized once the customer is provisioned and as services are provided in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following five-step framework: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. The Company identifies performance obligations in its contracts with customers, which primarily include subscription services and professional services. The transaction price is determined based on the amount which the Company expects to be entitled to in exchange for providing the promised services to the customer. The transaction price in the contract is allocated to each distinct performance obligation on a relative standalone selling price basis. Revenue is recognized when performance obligations are satisfied. Contract payment terms are typically net 30 days. Collectability is assessed based on a number of factors including collection history and creditworthiness of the customer, and the Company may mitigate exposure to credit risk by requiring payments in advance. If collectability of substantially all consideration to which the Company is entitled under the contract is determined to be not probable, revenue is not recorded until collectability becomes probable at a later date. Revenue is recorded based on the transaction price excluding amounts collected on behalf of third parties, such as sales taxes collected and remitted to governmental authorities. Subscription and Returns Revenue Subscription and returns revenue primarily consist of contractually agreed upon fees paid for using the Company’s cloud-based solutions, which include tax calculation, preparing and filing transaction tax returns, compliance document management, and tax content subscription services. Under the Company’s subscription agreements, customers select a price plan that includes an allotted maximum number of transactions or number of jurisdictions over the subscription term. Unused transactions are not carried over to the customer’s next subscription term, and customers are not entitled to refunds of fees paid or relief from fees due in the event they do not use the allotted number of transactions. If customers exceed the maximum transaction level within their price plan, the Company will generally upgrade the customer to a higher transaction price plan or, in some cases, charge overage fees on a per transaction basis. Fees paid for subscription services to tax content vary depending on the volume of tax information accessible to the customer. The Company’s subscription arrangements do not provide the customer with the right to take possession of the software supporting the cloud-based application services. The Company’s standard subscription contracts are non-cancelable except where contract terms provide rights to cancel in the first 60 days of the contract term. Cancellations under the Company’s standard subscription contracts are not material, and do not have a significant impact on revenue recognized. Tax returns processing services include collection of tax data and amounts, preparation of compliance forms, and submission to taxing authorities. Returns processing services are primarily charged on a subscription basis for an allotted number of returns to process within a given time period. The Company earns Streamlined Sales Tax (“SST”) revenue from participating state and local governments based on a percentage of the sales tax reported and paid. Revenue is recognized ratably over the contractual term of the arrangement, beginning on the date that the service is made available to the customer. The Company invoices its subscription customers for the initial term at contract signing and at each subscription renewal. Initial terms generally range from 12 to 18 months, and renewal periods are typically one year. Amounts that are contractually billable and have been invoiced, or which have been collected as cash, are initially recorded as deferred revenue or contract liabilities. While historically most of the Company's customers are invoiced once at the beginning of the term, an increasing portion of customers are invoiced semi-annually, quarterly, or monthly. Included in the total subscription fee for cloud-based solutions are non-refundable upfront fees that are typically charged to new customers. These fees are associated with work performed to set up a customer with the Company’s services, and do not represent a distinct good or service. Instead, the fees are included within the transaction price and allocated to the remaining performance obligations in the contract. The Company recognizes revenue for these fees in accordance with the revenue recognition for those performance obligations. Also included in subscription and returns revenue is interest income on funds held from customers. The Company uses trust accounts at FDIC-insured institutions to provide tax remittance services to customers and collect funds from customers in advance of remittance to tax authorities. After collection and prior to remittance, the Company earns interest on these funds. Professional Services Revenue The Company generates professional services revenue from providing tax analysis and services, including business licenses and tax registrations, tax refund claims and recovery assistance, Judgments and Estimates The Company’s contracts with customers often include obligations to provide multiple services to a customer. Determining whether services are considered distinct performance obligations that should be accounted for separately from one another requires judgment. Subscription services and professional services are both distinct performance obligations that are accounted for separately. Judgment is required to determine the standalone selling price (“SSP”) for each distinct performance obligation. The Company allocates revenue to each performance obligation based on the relative SSP. The Company determines SSP for performance obligations based on overall pricing objectives, which take into consideration observable prices, market conditions and entity-specific factors. This includes a review of historical data related to the services being sold and customer demographics. The Company uses a range of amounts to estimate SSP for performance obligations. There is typically more than one SSP for individual services due to the stratification of those services by information, such as size and type of customer. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain costs related to employee sales incentive programs (sales commissions) and partner commission programs represent incremental costs of obtaining a contract and therefore should be capitalized. Capitalized costs are included in deferred commissions on the consolidated balance sheets. These deferred commissions are amortized over an estimated period of benefit, generally six years. The Company determines the period of benefit by taking into consideration past experience with customers, the expected life of acquired technology that generates revenue, industry peers, and other available information. The period of benefit is generally longer than the term of the initial contract because of anticipated renewals. The Company elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset would have been one year or less. Stock-Based Compensation The Company accounts for stock-based compensation by calculating the fair value of each option, RSU, or performance share unit (“PSU”) issued under the 2018 Equity Incentive Plan (the “2018 Plan”) Recently Adopted Accounting Standards There are no accounting standards that have been recently adopted. New Accounting Standards Not Yet Adopted ASU 2021-08 In October 2021, the Financial Accounting Standards Board issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an entity generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to businesses combinations occurring on or after the effective date of the amendment. Early adoption is permitted, including adoption in an interim period. The Company currently expects to adopt this new guidance in the first quarter of 2023 and is currently evaluating the impact of this new guidance on the consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	2. F Assets and liabilities measured at fair value on a recurring basis The following financial assets and liabilities are measured at fair value on a recurring basis. The fair values recognized in the accompanying consolidated balance sheets and the level within the fair value hierarchy in which the fair value measurements fall is as follows (in thousands): Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Identical Assets Inputs Inputs March 31, 2022 Value (Level 1) (Level 2) (Level 3) Money market funds $ 1,405,965 $ 1,405,965 $ — $ — Available-for-sale securities: U.S. treasury securities 359 359 — — Earnouts related to business combinations 96,757 — — 96,757 Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Identical Assets Inputs Inputs December 31, 2021 Value (Level 1) (Level 2) (Level 3) Money market funds $ 1,439,522 $ 1,439,522 $ — $ — Available-for-sale securities: U.S. treasury securities 370 370 — — Earnouts related to business combinations 113,978 — — 113,978 Earnout Liability Earnout liabilities recorded in connection with an acquisition accounted for as a business combination under ASC 805 are recorded at estimated fair value on a recurring basis. Business combinations included in the earnout liabilities table below are discussed in Note 4. Earnouts recorded in connection with asset acquisitions are recorded as earnout payments become known and are not remeasured on a recurring basis. As such, earnouts related to asset acquisitions, which are discussed in Note 6, are not included in these fair value disclosures. Earnout liabilities related to business combinations are classified as Level 3 liabilities because the Company uses unobservable inputs to value them, reflecting its assessment of the assumptions market participants would use to value these liabilities. Changes in the fair value of earnout liabilities related to business combinations are recorded in fair value changes in earnout liabilities and included in total other income (expense), net in the consolidated statements of operations. The Company estimates the fair value of earnout liabilities for business combinations using either probability-weighted discounted cash flows and Monte Carlo simulations or a scenario-based approach. The following table provides summary information of the assumptions used to calculate the estimated earnout liabilities related to 2021 and 2020 acquisitions (in thousands): Discount Rate as of Balance as of Balance as of Acquisition Year of Acquisition Earnout Target Method Earnout Period March 31, 2022 March 31, 2022 December 31, 2021 CrowdReason 2021 Specific revenue growth thresholds through October 2024, a cap of $30.0 million is available; to be settled in cash. Probability-weighted discounted cash flows and Monte Carlo simulation October 2024 5.0 % (a) $ 24,368 $ 26,320 Track1099 2021 Specific revenue growth thresholds through April 2023, with a cap of $12.5 million; to be settled in cash. Probability-weighted discounted cash flows and Monte Carlo simulation April 2023 10.0 % (a) 6,570 7,880 Davo 2021 Specific revenue growth thresholds through March 2023, with no cap; to be settled in cash. Probability-weighted discounted cash flows and Monte Carlo simulation March 2023 8.0 % (a) 34,940 35,885 Transaction Tax Resources (“TTR”) 2020 Specific revenue growth thresholds through December 2022, with cap of $26.4 million; to be settled in cash. Probability-weighted discounted cash flows and Monte Carlo simulation December 2022 15.0 % (c) 11,910 24,830 Business Licenses 2020 Achievement of certain performance metrics through November 2024, with cap of $20.7 million; to be settled in common stock. Scenario-based approach November 2024 6.2 % (b) 18,969 19,063 Balance end of period $ 96,757 $ 113,978 (a) The discount rate was calculated using the build-up method with a risk-free rate commensurate with the term of the earnout based on the equity, asset and revenue betas, size premium, and the Company’s specific risk premium, as well as the market risk premium using a bottom-up approach. (b) The discount rate was based on the Company's estimated credit yield. The Business Licenses earnout was assumed by management to have a high probability of achievement. (c) $13.2 million was paid on March 2, 2022 in satisfaction of the first earnout period for TTR. The second earnout period, if achieved, is payable in March 2023 A reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs, is as follows (in thousands): For the Three Months Ended March 31, 2022 2021 Earnout liabilities related to business combinations: Balance beginning of period $ 113,978 $ 34,501 Measurement period adjustments — 1,802 Payments of earnout liabilities (13,220 ) — Fair value changes included in total other expense (income), net (4,001 ) 1,350 Balance end of period $ 96,757 $ 37,653 Assets and liabilities measured at fair value on a non-recurring basis The Company’s non-financial assets and liabilities, which include goodwill, intangible assets, long-lived assets and deferred revenue, and the Company’s liabilities for the accrued purchase price related to acquisitions, The estimation of fair value for these assets and liabilities requires the use of significant unobservable inputs, and as a result, the Company classifies these assets and liabilities as Level 3 within the fair value hierarchy. Fair Value of Other Financial Instruments The Company has $977.5 million in principal amount of the 2026 Notes. See Note 9 for further details. The Company carries the 2026 Notes at par value less unamortized debt issuance costs on its consolidated balance sheet as of March 31, 2022, and December 31, 2021, and presents the fair value for disclosure purposes only. The estimated fair value of the 2026 Notes, based on a market approach as of March 31, 2022, was approximately $ million, which represents a Level 2 valuation estimate. The estimated fair value was determined based on the actual bids and offers of the 2026 Notes in an over-the-counter market on the last trading day of the quarter.

Balance Sheet Detail

Balance Sheet Detail	3 Months Ended
	Mar. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Detail	3. Balance Sheet Detail Property and equipment, net consisted of the following (in thousands): Useful March 31, December 31, Life (Years) 2022 2021 Computer equipment and software 3 to 5 $ 21,240 $ 19,923 Internally developed software 3 to 6 32,244 27,099 Furniture and fixtures 5 6,428 6,425 Office equipment 2 to 5 1,343 1,275 Leasehold improvements 1 to 10 30,102 30,046 91,357 84,768 Accumulated depreciation (41,989 ) (38,304 ) Property and equipment—net $ 49,368 $ 46,464 Depreciation expense was $4.0 million for the three months ended March 31, 2022, Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2022 2021 Licenses and subscriptions $ 18,670 $ 14,511 Prepaid and other current taxes 2,444 3,132 Deposits 4,903 3,746 Prepaid employee related expenses 2,755 2,780 Prepaid cloud computing implementation costs 2,262 1,708 Prepaid insurance 3,960 — Other 4,320 3,390 Total $ 39,314 $ 29,267 Accrued expenses consisted of the following (in thousands): March 31, December 31, 2022 2021 Accrued bonus $ 11,476 $ 40,853 Accrued partner commissions 14,133 13,088 Accrued payroll and related taxes 15,127 10,208 Employee stock purchase plan contributions 3,463 7,113 Accrued sales commissions 5,422 7,007 Contract liabilities 897 6,918 Accrued federal, state, local, and foreign taxes 3,574 3,926 Self-insurance reserves 2,471 2,401 Accrued interest payable on Convertible Senior Notes 414 944 Other 12,125 17,334 Total $ 69,102 $ 109,792

Acquisitions of Businesses

Acquisitions of Businesses	3 Months Ended
	Mar. 31, 2022
Business Combinations [Abstract]
Acquisitions of Businesses	4. Acquisitions of Businesses April 2021 Acquisition of Inposia On April 1, 2021, the Company acquired the outstanding equity of Inposia under a Share Purchase Agreement (the “Inposia Purchase”). Inposia is a German software company that delivers e-invoicing, digital tax reporting, and system and data integration to support digital transformation efforts and address real-time compliance requirements for businesses. Inposia will build upon Avalara’s existing e-invoicing capabilities in Brazil and India to support customers worldwide with real-time compliance. The Company accounted for the Inposia Purchase as a business combination. Acquisition-related costs of $1.5 million were primarily for legal and due-diligence related fees and were recorded in general and administrative expense, of which $1.0 million was incurred in the second half of 2020 and $0.5 million was incurred in 2021. The total consideration transferred related to this transaction was €31.8 million (or approximately $37.4 million using the exchange rate on April 1, 2021), consisting of net cash consideration of $14.5 million and 164,416 shares of the Company’s common stock paid at closing with an acquisition date fair value of $23.0 million. Net cash consideration consists of $12.2 million cash paid at closing, and a million cash deposit paid in the fourth quarter of 2020, offset by $0.2 million cash received by the Company in the third quarter of 2021 as a result of net working capital adjustments. A portion of shares issued are held in escrow as of March 31, 2022, and will be released to the Inposia shareholders during the 18 months following the acquisition, subject to reduction for certain indemnification and other potential obligations of the Inposia shareholders. The shares held in escrow are considered issued and outstanding and are recorded in shareholders’ equity on the consolidated balance sheet as of December 31, 2021 and March 31, 2022. T Total Consideration Cash paid at closing (net of amounts returned) $ 14,456 Fair value of common stock issued at closing 22,971 Total consideration $ 37,427 Fair values of the assets acquired and the liabilities assumed in the Inposia Purchase as of the acquisition date are provided in the following table (in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 1,264 Trade accounts receivable 1,767 Other current assets 268 Operating lease right-of-use assets 928 Property and equipment 98 Developed technology, customer relationships, and other intangibles 14,269 Goodwill 26,520 Other noncurrent assets 35 Total assets acquired 45,149 Liabilities assumed: Trade payables and accrued expenses 1,478 Deferred revenue 810 Other liabilities, noncurrent 106 Operating lease liabilities 928 Deferred tax liability 4,400 Total liabilities assumed 7,722 Net assets acquired $ 37,427 The carrying amount of trade accounts receivable acquired in the Inposia Purchase approximates the fair value. The fair value of deferred revenue was estimated utilizing a discount rate of 4.0% based on the Company’s estimated pre-tax cost of debt. The Company utilizes different valuation approaches and methodologies to determine the fair value of acquired intangible assets. The weighted-average amortization period for all intangibles acquired in the Inposia Purchase is 6.2 years. A summary of the valuation methodologies, significant assumptions, and estimated useful lives of acquired intangible assets in the Inposia Purchase are provided in the below table (in thousands): Intangible Fair Value Valuation Methodology Discount Rate Estimated Useful Life Customer relationships $ 3,288 Multi-period excess earnings-income approach 18.5% 8 years Developed technology 9,572 Relief from royalty-income approach 18.5% 6 years Noncompetition agreements 1,174 With-and-without valuation-income approach 21.0% 3 years Tradename 235 Relief from royalty-income approach 18.5% 3 years The excess of the purchase price over the net identified tangible and intangible assets is $26.5 million and has been recorded as goodwill, which includes synergies expected from the combined service offerings and the value of the assembled workforce. The goodwill is not expected to be deductible for tax purposes. April 2021 Acquisition of Davo On April 20, 2021, the Company acquired substantially all the assets of Davo under an Asset Purchase Agreement (the “Davo Purchase”). Davo helps emerging small businesses automate the daily and ongoing requirements for sales tax. As a result of the acquisition, Davo extends Avalara’s ability to provide integrated sales tax compliance processes to alleviate the burden of compliance on small businesses. The Company accounted for the Davo Purchase as a business combination. Acquisition-related costs of $0.1 million were primarily for legal and due-diligence related fees and were recorded in general and administrative expense. The total consideration transferred related to this transaction was $56.7 million, consisting of $23.5 million cash paid at close, a $0.3 million cash deposit paid in the first quarter of 2021, an acquisition holdback with a fair value upon acquisition of $2.6 million, and an earnout provision with a fair value upon acquisition of $30.3 million. The acquisition holdback represents an additional $2.6 million of cash to be paid Davo shareholders during the 18 months following the acquisition date, subject to reduction for certain indemnifications and other potential obligations of Davo shareholders. The earnout will be calculated as a multiple of certain performance metrics during the 12-month measurement periods ending March 31, 2022, and 2023, and there is not a stated minimum or maximum payment required under the earnout. T Total Consideration Cash paid through closing $ 23,818 Fair value of earnout provision 30,338 Fair value of holdbacks 2,591 Total consideration $ 56,747 Fair values of the assets acquired and the liabilities assumed in the Davo Purchase as of the acquisition date are provided in the following table (in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 198 Funds held from customers 12,464 Trade accounts receivable 119 Other current assets 58 Operating lease right-of-use assets 46 Developed technology, customer relationships, and other intangibles 4,651 Goodwill 51,911 Other noncurrent assets 2 Total assets acquired 69,449 Liabilities assumed: Accrued expenses 117 Deferred revenue 75 Operating lease liabilities 46 Customer fund obligations 12,464 Total liabilities assumed 12,702 Net assets acquired $ 56,747 The carrying amount of trade accounts receivable and deferred revenue acquired in the Davo Purchase approximates the fair value. The Company utilizes different valuation approaches and methodologies to determine the fair value of acquired intangible assets. The weighted-average amortization period for all intangibles acquired in the Davo Purchase is 5.4 years. A summary of the valuation methodologies, significant assumptions, and estimated useful lives of acquired intangible assets in the Davo Purchase are provided in the below table (in thousands): Intangible Fair Value Valuation Methodology Discount Rate Estimated Useful Life Customer relationships $ 2,050 Multi-period excess earnings-income approach and replacement cost method-cost approach 13.5% 6 years Developed technology 1,950 Relief from royalty-income approach 13.5% 5 years Noncompetition agreements 564 With-and-without valuation-income approach 15.5% 5 years Tradename 87 Relief from royalty-income approach 13.5% 1 year The excess of the purchase price over the net identified tangible and intangible assets is $51.9 million and has been recorded as goodwill, which includes synergies expected from the combined service offerings and the value of the assembled workforce. The goodwill is expected to be deductible for tax purposes. September 2021 Acquisition of 3CE Technologies, Inc On September 7, 2021, the Company acquired substantially all the assets of 3CE under an Asset Purchase Agreement (the “3CE Purchase”). 3CE is a Canadian company that provides software and services for Harmonized System code classifications and verifications, primarily to government entities and logistics services providers. The acquisition will expand and improve Avalara’s Harmonized System classification content and provide a new self-service model to sell to the Company’s customers. The Company accounted for the 3CE purchase as a business combination. The total consideration related to this transaction is $11.2 million, consisting of $9.9 million cash paid at close and an acquisition holdback with a fair value upon acquisition of $1.3 million. The fair values of the assets acquired and the liabilities assumed in the 3CE Purchase as of the acquisition date include intangible assets of $3.7 million, primarily attributable to developed technology and customer relationships and goodwill of $7.1 million. October 2021 Acquisition of Track1099 On October 1, 2021, the Company acquired substantially all the assets of Track1099 under an Asset Purchase Agreement (the “Track1099 Purchase”). Track1099 provides online software and services for cost-effectively managing, e-filing, and e-delivering Internal Revenue Service forms, including Forms 1099, W-2, and W-9. Acquisition related costs of $0.1 million were primarily for The total consideration related to this transaction was $48.8 million, consisting of $35.0 million cash paid at close, an acquisition holdback with a fair value upon acquisition of $5.0 million, and an earnout provision with a fair value upon acquisition of $8.8 million. The acquisition holdback represents an additional $5.0 million of cash to be paid to the sellers 27 months following the acquisition date, subject to reduction for certain indemnifications and other potential obligations of the sellers. The earnout for Track1099 is calculated based on certain billing performance metrics during the 12-month measurement periods ending April 30, 2022 and April 30, 2023, not to exceed $12.5 million in total or $6.25 million in each earnout period. Preliminary total consideration as of March 31, 2022, is presented below (in thousands): Total Consideration (preliminary) Cash paid through closing $ 35,000 Fair value of earnout provision 8,820 Fair value of holdbacks 4,984 Total consideration $ 48,804 Preliminary estimated fair values of the assets acquired and the liabilities assumed in the Track1099 Purchase as of the acquisition date are provided in the following table (in thousands): Fair Value (preliminary) Assets acquired: Prepaid and other current assets $ 2 Developed technology, customer relationships, and other intangibles 5,850 Goodwill 42,962 Total assets acquired 48,814 Liabilities assumed: Current liabilities 1 Deferred revenue 9 Total liabilities assumed 10 Net assets acquired $ 48,804 The estimated fair values for certain acquired intangibles, the earnout, and holdback are preliminary in nature and subject to adjustment when the necessary information is available to complete the valuation. The Company utilizes different valuation approaches and methodologies to determine the fair value of acquired intangible assets. A summary of the valuation methodologies, significant assumptions, and estimated useful lives of acquired intangible assets in the Track1099 Purchase are provided in the table below (in thousands): Intangible Assigned Value Valuation Methodology Discount Rate Estimated Useful Life Customer relationships $ 3,200 Multi-period excess earnings-income approach 28.0% 5 years Developed technology 1,250 Relief from royalty-income approach 28.0% 2 years Noncompetition agreement 1,300 With-and-without valuation-income approach 30.0% 5 years Tradename 100 Relief from royalty-income approach 28.0% 2 years The excess of the purchase price over the net identified tangible and intangible assets is $43.0 million and has been recorded as goodwill, which includes synergies expected from the combined service offerings and the value of the assembled workforce. The goodwill is expected to be deductible for tax purposes. October 2021 Acquisition of CrowdReason and CorrelationAdvisors On October 18, 2021, the Company acquired substantially all the assets of CrowdReason, Limited Liability Company and CorrelationAdvisors, LLC under an Asset Purchase Agreement (the “CrowdReason Purchase”). CrowdReason is a technology services company that provides software applications, solutions, and services for property tax compliance. CorrelationAdvisors provides consulting services related to property valuation and property tax compliance. The Company accounted for the CrowdReason Purchase as a business combination. Acquisition-related costs of $0.2 million were primarily for legal and due-diligence The total consideration transferred related to this transaction was $36.4 million, consisting of $8.3 million cash paid at close, acquisition holdbacks with a fair value upon acquisition of $1.7 million, and an earnout provision with a fair value upon acquisition of $26.3 million. The acquisition holdback represents an additional $1.7 million of cash to be paid to the sellers during the 18 months following the acquisition date, subject to reduction for certain indemnifications and other potential obligations of the sellers. The earnout is calculated as a multiple of revenue growth thresholds during the 12-month measurement periods ending October 31, 2022, 2023, and 2024, with the total purchase price, inclusive of earnouts, not to exceed $40.0 million. Preliminary total consideration as of March 31, 2022, is presented below (in thousands): Total Consideration (preliminary) Cash paid through closing $ 8,317 Fair value of earnout provision 26,320 Fair value of holdbacks 1,727 Total consideration $ 36,364 Preliminary estimated fair values of the assets acquired and the liabilities assumed in the CrowdReason Purchase as of the acquisition date are provided in the following table (in thousands): Fair Value (preliminary) Assets acquired: Current assets $ 1,426 Developed technology, customer relationships, and other intangibles 10,300 Goodwill 25,415 Total assets acquired 37,141 Liabilities assumed: Current liabilities 101 Deferred revenue & contract liabilities 676 Total liabilities assumed 777 Net assets acquired $ 36,364 The estimated fair values for certain acquired intangibles, the earnout, and holdback are preliminary in nature and subject to adjustment when the necessary information is available to complete the valuation. The Company utilizes different valuation approaches and methodologies to determine the fair value of acquired intangible assets. A summary of the valuation methodologies, significant assumptions, and estimated useful lives of acquired intangible assets in the CrowdReason Purchase are provided in the table below (in thousands): Intangible Assigned Value Valuation Methodology Discount Rate Estimated Useful Life Customer relationships $ 5,700 Multi-period excess earnings-income approach 18.0% 5 to 8 years Developed technology 3,900 Relief from royalty-income approach 18.0% 5 years Backlog 450 Multi-period excess earnings-income approach 15.0% 1 year Noncompetition agreements 100 With-and-without valuation-income approach 20.0% 5 years Tradename 150 Relief from royalty-income approach 18.0% 2 years The excess of the purchase price over the net identified tangible and intangible assets is $25.4 million and has been recorded as goodwill, which includes synergies expected from the combined service offerings and the value of the assembled workforce. The goodwill is expected to be deductible for tax purposes. Pro Forma Financial Information (Unaudited) The unaudited pro forma financial information in the table below summarizes the combined results of operations for Avalara and all 2021 acquisitions as though the companies were combined as of January 1, 2021. There were no acquisitions during the three months ended March 31, 2022. The unaudited pro forma financial information presented also includes certain business combination accounting effects resulting from the acquisitions, including amortization charges from acquired intangible assets. No adjustments were made for the fair value of deferred revenue and contract liabilities or fair value measurement adjustments for earnout liabilities. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had occurred on the dates indicated. For the Three Months Ended March 31, 2022 2021 Total revenue $ 204,530 $ 163,275 Pre-tax loss (32,272 ) (27,806 )

Revenue

Revenue	3 Months Ended
	Mar. 31, 2022
Revenue From Contract With Customer [Abstract]
Revenue	5. Revenue See Note 1 for a description of the Company’s revenue recognition accounting policy. Disaggregation of Revenue The following table disaggregates revenue generated within the United States (“U.S.”) from revenue generated from customers outside of the U.S. Revenue for transaction tax compliance in the U.S. is further disaggregated based on the solutions or services purchased by customers. Total revenues consisted of the following (in thousands): For the Three Months Ended March 31, 2022 2021 Revenue (U.S.): Subscription and returns Tax calculations $ 100,500 $ 76,396 Tax returns and compliance management 73,727 52,847 Interest income on funds held for customers 208 141 Total subscription and returns 174,435 129,384 Professional services 16,041 13,288 Total revenue (U.S.) 190,476 142,672 Total revenue (non-U.S.) 14,054 10,929 Total revenue $ 204,530 $ 153,601 Disclosures Related to Contracts with Customers Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. To the extent a contract exists, as defined by ASC 606, these liabilities are classified as current and non-current deferred revenue. To the extent that a contract does not exist, as defined by ASC 606 (e.g., customer agreements with non-standard termination rights), these liabilities are classified as contract liabilities. Contract liabilities are transferred to deferred revenue at the point in time when the criteria that establish the existence of a contract are met. Contract Liabilities A summary of the activity impacting the contract liabilities during the three months ended March 31, 2022 and 2021, is presented below (in thousands): For the Three Months Ended March 31, 2022 2021 Contract liabilities: Balance beginning of period $ 6,918 $ 10,134 Contract liabilities transferred to deferred revenue (6,622 ) (3,866 ) Addition to contract liabilities 601 6,198 Balance end of period $ 897 $ 12,466 As of March 31, 2022, contract liabilities are expected to be transferred to deferred revenue within the next 12 months and therefore are included in accrued expenses on the consolidated balance sheets. As of December 31, 2021 the majority of the contract liability balance related to a single marketplace partner. During the first quarter of 2022, the agreement with this partner was amended such that amounts are no longer presented separately as contract liabilities. Deferred Revenue A summary of the activity impacting deferred revenue balances during the three months ended March 31, 2022 and 2021, is presented below (in thousands): For the Three Months Ended March 31, 2022 2021 Deferred revenue: Balance beginning of period $ 282,955 $ 209,690 Revenue recognized (204,530 ) (153,601 ) Additional amounts deferred 225,185 169,442 Balance end of period $ 303,610 $ 225,531 As of March 31, 2022, $302.5 million of deferred revenue is expected to be recognized within the next 12 months and is included in current liabilities on the consolidated balance sheets. The remaining amount of deferred revenue is included in noncurrent liabilities and is expected to be recognized within the next 18 months. Assets Recognized from the Costs to Obtain Contracts with Customers Assets are recognized for the incremental costs of obtaining a contract with a customer if the benefit of those costs is expected to be longer than one year. These deferred commissions are amortized over an expected period of benefit of generally six years. A summary of the activity impacting the deferred commissions during the three months ended March 31, 2022, is presented below (in thousands): For the Three Months Ended March 31, 2022 2021 Deferred commissions: Balance beginning of period $ 68,519 $ 50,870 Additional commissions deferred 6,832 5,695 Amortization of deferred commissions (4,584 ) (3,335 ) Balance end of period $ 70,767 $ 53,230 As of March 31, 2022, $17.3 million of deferred commissions are expected to be amortized within the next 12 months and are included in current assets on the consolidated balance sheets. The remaining amount of deferred commissions is included in noncurrent assets. There were no impairments of assets related to deferred commissions during the three months ended March 31, 2022 or 2021. There were no assets recognized related to the costs to fulfill contracts during the three months ended March 31, 2022, or 2021 as these costs were not material. Remaining Performance Obligations Contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. These amounts include deferred revenue that has been invoiced and non-cancellable amounts that will be invoiced and recognized as revenue in future periods. As of March 31, 2022, the remaining performance obligations to which enforceable rights exist are $392.9 million, of which $377.2 million is expected to be recognized as revenue over the next 12 months with the remaining amount thereafter. Of the remaining performance obligations as of March 31, 2022, $89.3 million relates to non-cancellable amounts that have not yet been invoiced, of which $74.7 million is expected to be recognized as revenue over the next 12 months with the remaining amount thereafter.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	6. Intangible Assets Intangible assets consisted of the following (in thousands): March 31, 2022 Useful Life (Years) Gross Accumulated Amortization Net Backlog 1 to 7 $ 4,500 $ (2,249 ) $ 2,251 Customer relationships 5 to 10 75,162 (26,527 ) 48,635 Developed technology (1) 1 to 6 73,204 (40,516 ) 32,688 Noncompetition agreements 3 to 5 6,445 (2,064 ) 4,381 Tradename and trademarks 1 to 3 7,272 (5,452 ) 1,820 $ 166,583 $ (76,808 ) $ 89,775 (1) December 31, 2021 Useful Life (Years) Gross Accumulated Amortization Net Backlog 3 $ 4,500 $ (1,816 ) $ 2,684 Customer relationships 3 to 10 75,188 (23,795 ) 51,393 Developed technology (1) 3 to 8 72,723 (37,333 ) 35,390 Noncompetition agreements 3 to 5 6,452 (1,725 ) 4,727 Tradename and trademarks 1 to 4 7,267 (4,643 ) 2,624 $ 166,130 $ (69,312 ) $ 96,818 (1) Finite-lived intangible assets are amortized over their estimated useful life. Finite-lived intangible assets amortization expense was $7.1 million for the three months ended March 31, 2022, and $4.4 million for the three months ended March 31, 2021. Acquisitions of finite-lived intangible assets In May 2018, the Company acquired developed technology to facilitate cross-border transactions (e.g., tariffs and duties), from Tradestream Technologies Inc. and Wise 24 Inc. (the “Sellers”) for cash and common stock. This acquisition was accounted for as an asset acquisition. Goodwill Changes in the carrying amount of goodwill for the three months ended March 31, 2022, Balance—December 31, 2021 $ 672,381 Cumulative translation adjustments (950 ) Balance—March 31, 2022 $ 671,431 Goodwill is tested for impairment annually on October 31 at the reporting unit level or whenever circumstances occur indicating goodwill might be impaired. The impairment test involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the fair value exceeds carrying value, the Company will conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, the Company will recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. The Company has three reporting units for goodwill impairment testing consisting of its U.S., European, and Brazilian operations. As of March 31, 2022 , the Brazilian reporting unit had no associated goodwill.

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	7. Leases Total lease cost, net of sublease income, was $3.8 million for the three months ended March 31, 2022, and $3.9 million for the three months ended March 31, 2021. Sublease income was $0.4 million for the three months ended March 31, 2022 and 2021. Leases that commenced in the first three months of 2022 increased operating lease right-of-use assets by $1.4 million.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Contingencies Loss contingencies may arise in connection with the ordinary conduct of the Company’s business activities. The Company considers all loss contingencies on a quarterly basis and based on known facts assesses whether potential losses are considered reasonably possible, probable, and estimable. The Company establishes an accrual for loss contingencies when the loss is both probable and reasonably estimable. If the estimated loss is a range of potential outcomes and there is no better estimate within the range, management accrues the amount at the low end of the range. These accruals represent management’s estimate of probable losses and, in such cases, there may be an exposure to loss in excess of the amounts accrued. Significant judgment is required to determine both likelihood of there being a probable loss and the estimated amount of a loss. If a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrual, but will evaluate other disclosure requirements and continue to monitor the matter for developments that would make the loss contingency both probable and reasonably estimable. The ultimate outcome of any litigation relating to a loss contingency is uncertain and, regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, negative publicity, diversion of management resources and other factors. In its standard subscription agreements, the Company has agreed to indemnification provisions with respect to certain matters. Further, from time to time, the Company has also assumed indemnification obligations through its acquisition activity. These indemnification provisions can create a liability to the Company if its services do not appropriately calculate taxes due to tax jurisdictions, or if the Company is delinquent in the filing of returns on behalf of its customers. Although the Company’s agreements have disclaimers of warranties that limit its liability (beyond the amounts the Company agrees to pay pursuant to its indemnification obligations and guarantees, as applicable), a court could determine that such disclaimers and limitations are unenforceable as a matter of law and hold the Company liable for certain errors. Further, in some instances the Company has negotiated agreements with specific customers or assumed agreements in connection with the Company’s acquisitions that do not limit this liability or disclaim these warranties. It is not possible to reasonably estimate the potential loss under these indemnification arrangements.

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	9. Debt Convertible Senior Notes In August 2021, the Company completed a private offering of $977.5 million principal amount of 0.25% convertible senior notes due 2026 (the “2026 Notes”). The 2026 Notes are unsecured obligations and bear interest at a fixed rate of 0.25% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2022. The 2026 Notes will mature on August 1, 2026, unless earlier converted, redeemed, or repurchased. The Company incurred $17.6 million of debt issuance costs in connection with the 2026 Notes offering consisting of the initial purchasers’ commissions and legal, accounting, and other direct costs of the offering. The total proceeds from the offering, net of the debt issuance costs, were $959.9 million. The Company used $75.3 million of the net proceeds from the sale of the 2026 Notes to pay the premiums of the capped call options described further below. As of March 31, 2022, none of the conversion conditions of the 2026 Notes described in the Amended 2021 Annual Report were met. The net carrying amount of the 2026 Notes was as follows (in thousands): March 31, December 31, 2022 2021 Principal $ 977,500 $ 977,500 Unamortized debt issuance costs (15,356 ) (16,241 ) Net carrying amount $ 962,144 $ 961,259 The following table sets forth the interest expense recognized related to the 2026 Notes (in thousands): For the Three Months Ended March 31, 2022 Contractual interest expense $ 611 Amortization of debt issuance costs 885 Total interest expense related to 2026 Notes $ 1,496 Capped Call Transactions In connection with the offering of the 2026 Notes, the Company purchased capped calls from certain financial institutions with respect to its common stock. The capped calls each have an initial strike price of $238.44 per share of the Company’s common stock, which corresponds to the initial conversion price of the 2026 Notes. The capped calls each have an initial cap price of $323.30 per share and expire in incremental components on each trading date beginning on June 4, 2026, and ending on July 30, 2026. The capped calls are intended to offset potential dilution to the Company’s common stock or offset any cash payments the Company is required to make in excess of the principal amount, as the case may be, with such reduction or offset subject to the cap price. The capped calls are subject to adjustments for certain corporate events and standard anti-dilution provisions. The Company paid an aggregate amount of $75.3 million for the capped calls, covering approximately 4.1 million shares of the Company’s common stock. As the capped calls are both legally detachable and separately exercisable from the 2026 Notes, the Company accounts for the capped call s separately from the 2026 Notes. The capped call s are indexed to the Company’s own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call s have been included as a net reduction to additional paid-in capital in the consolidated balance sheet.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2022
Stockholders Equity Note [Abstract]
Shareholders' Equity	10. Shareholders’ Equity Authorized Capital—Common Stock and Preferred Stock Under the Amended and Restated Articles of Incorporation, which became effective in June 2018, the Company is authorized to issue two classes of stock designated as common stock and preferred stock. The Company’s total authorized capital stock is 620,000,000 shares, consisting of 600,000,000 shares of common stock, $0.0001 par value per share, and 20,000,000 shares of undesignated preferred stock, $0.0001 par value per share. The changes to the Company’s shareholders’ equity during the three months ended March 31, 2022, Accumulated Additional Other Total Common Stock Paid-In Comprehensive Accumulated Shareholders’ Shares Amount Capital Loss Deficit Equity Balance at January 1, 2022 87,086,665 $ 9 $ 1,732,742 $ (3,428 ) $ (702,869 ) $ 1,026,454 Exercise of stock options 107,623 2,281 2,281 Vesting of restricted stock units 466,497 Vesting of performance share units 38,291 Stock-based compensation cost 33,371 33,371 Shares issued under employee stock purchase plan 85,926 8,006 8,006 Loss on translation adjustment (1,347 ) (1,347 ) Net loss (32,557 ) (32,557 ) Balance at March 31, 2022 87,785,002 $ 9 $ 1,776,400 $ (4,775 ) $ (735,426 ) $ 1,036,208 The changes to the Company’s shareholders’ equity for the three months ended March 31, 2021, is as follows (in thousands, except share data): Accumulated Additional Other Total Common Stock Paid-In Comprehensive Accumulated Shareholders’ Shares Amount Capital Loss Deficit Equity Balance at January 1, 2021 85,057,727 $ 9 $ 1,648,741 $ (1,339 ) $ (567,251 ) $ 1,080,160 Exercise of stock options 296,226 5,529 5,529 Vesting of restricted stock units 346,008 Stock-based compensation cost 19,127 19,127 Shares issued under employee stock purchase plan 60,064 7,088 7,088 Loss on translation adjustment (390 ) (390 ) Net loss (30,068 ) (30,068 ) Balance at March 31, 2021 85,760,025 $ 9 $ 1,680,485 $ (1,729 ) $ (597,319 ) $ 1,081,446

Equity Incentive Plans

Equity Incentive Plans	3 Months Ended
	Mar. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Incentive Plans	11. Equity Incentive Plans The Company has stock-based compensation plans that provide for the award of equity incentives, including stock options, stock awards, RSUs, PSUs, and purchase rights. As of March 31, 2022, the Company had stock options outstanding under the 2018 Plan and the 2006 Equity Incentive Plan (the “2006 Plan”), RSUs and PSUs outstanding under the 2018 Plan, and purchase rights issued under the ESPP. The 2018 Plan became effective in connection with the Company’s initial public offering at which time the 2006 Plan was terminated. Outstanding awards under the 2006 Plan continue to be subject to the terms and conditions of the 2006 Plan. As of March 31, 2022, 4,500,890 shares were subject to outstanding awards under the 2018 plan and 14,372,738 shares were available for issuance under the 2018 Plan. As of March 31, 2022, 1,093,901 shares were subject to outstanding stock options under the 2006 Plan. Stock-Based Compensation The Company recognized total stock-based compensation cost related to equity incentive awards as follows (in thousands): For the Three Months Ended March 31, 2022 2021 Stock-based compensation cost: Stock options $ 2,161 $ 3,223 Restricted stock units 22,128 11,769 Performance share units 7,813 2,832 Employee stock purchase plan 1,269 1,303 Total stock-based compensation cost $ 33,371 $ 19,127 The amount of stock-based compensation cost above capitalized to internally developed software and cloud computing arrangements in accordance with the accounting guidance for internal-use software was $0.6 million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively. The Company uses the straight-line attribution method for recognizing stock-based compensation expense. Stock Options The following table summarizes stock option activity for the Company’s stock-based compensation plans for the three months ended March 31, 2022: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Life (in Years) (in thousands) Options outstanding as of January 1, 2022 2,278,789 $ 33.52 6.30 $ 217,824 Options granted — $ — Options exercised (107,623 ) $ 21.20 Options cancelled or expired (4,291 ) $ 111.83 Options outstanding as of March 31, 2022 2,166,875 $ 33.98 6.08 $ 141,996 Options exercisable as of March 31, 2022 1,778,867 $ 28.90 5.81 $ 125,598 The total intrinsic value of options exercised during the three months ended March 31, 2022 and 2021 was $7.7 million and $41.9 million, respectively. As of March 31, 2022, $8.9 million of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of approximately 1.5 years. Restricted Stock Units The following table summarizes RSU activity for the Company’s stock-based compensation plans for the three months ended March 31, 2022: Weighted Average Grant Date Fair Restricted Stock Units Value Per Share RSUs outstanding as of January 1, 2022 2,861,963 $ 99.41 RSUs granted 1,903,805 97.15 RSUs vested (466,497 ) 80.86 RSUs cancelled (98,343 ) 94.81 RSUs outstanding as of March 31, 2022 4,200,928 $ 100.56 Stock-based compensation cost for RSUs is recognized on a straight-line basis in the consolidated statements of operations over the period during which the participant is required to perform services in exchange for the award, based on the fair value of the Company’s underlying common stock on the grant date. The vesting period of each RSU grant is generally three or four years for employees and one year for non-employee directors. As of March 31, 2022, $374.0 million of total unrecognized compensation cost related to RSUs was expected to be recognized over a weighted average period of approximately 2.8 years. Performance Share Units The following table summarizes PSU activity for the Company’s stock-based compensation plans for the three months ended March 31, 2022: Weighted Average Grant Date Fair Performance Share Units Value Per Share PSUs outstanding as of January 1, 2022 114,890 $ 147.26 PSUs granted 223,363 98.90 PSUs vested (38,291 ) 147.26 PSUs cancelled — — PSUs outstanding as of March 31, 2022 299,962 $ 111.25 Stock-based compensation cost for PSUs is recognized on a graded vesting basis in the consolidated statements of operations over the period during which the participant is required to perform services in exchange for the award, based on the fair value of the Company’s underlying common stock on the grant date and the number of PSUs expected to be earned over the service period. Each PSU grant will vest in annual tranches over a three-year three-year As of March 31, 2022, $53.3 million of total unrecognized compensation cost related to PSUs was expected to be recognized over a weighted average period of approximately 2.0 years. Employee Stock Purchase Plan During the three months ended March 31, 2022, 85,926 shares of common stock were purchased under the ESPP. As of For the periods presented, the fair value of ESPP purchase rights was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Three Months Ended March 31, 2022 2021 Fair market value of common stock $ 111.00 $ 152.35 Volatility 33% 34% Expected term 0.5 years 0.5 years Expected dividend yield n/a n/a Risk-free interest rate 0.48% 0.08%

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Shareholders	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Loss Per Share Attributable to Common Shareholders	12. Net Loss Per Share Attributable to Common Shareholders The Company calculates basic and diluted net loss per share attributable to common shareholders in conformity with the two-class method required for companies with participating securities. The diluted net loss per share attributable to common shareholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. This includes using the if-converted method for calculating any potential dilutive effect of the convertible senior notes. For purposes of this calculation, all common stock equivalents have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is antidilutive. As a result, b asic and diluted net loss per common share was the same for each period presented . The following table sets forth the computation of basic and diluted net loss per common share (in thousands, except per share data): For the Three Months Ended March 31, 2022 2021 Numerator: Net loss attributable to common shareholders $ (32,557 ) $ (30,068 ) Denominator: Weighted-average common shares outstanding-basic 87,463 85,436 Dilutive effect of share equivalents resulting from stock options, RSUs, PSUs, ESPP shares, and convertible senior notes (if converted) — — Weighted-average common shares outstanding-diluted 87,463 85,436 Net loss per common share, basic and diluted $ (0.37 ) $ (0.35 ) The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because the impact of including them would have been antidilutive (in thousands): For the Three Months Ended March 31, 2022 2021 Options to purchase common shares 2,236 3,396 Unvested RSUs 2,853 2,258 Unvested PSUs 243 75 ESPP shares 9 7 Convertible senior notes (if converted) 4,100 — Total 9,441 5,736

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events On April 8, 2022, the Company released a $37.7 million general indemnification holdback to the sellers of TTR in connection with the October 2020 acquisition of TTR. The funds for payment of the TTR holdback were recorded as restricted cash – current and the liability was included in accrued purchase price related to acquisitions – current on the consolidated balance sheet as of March 31, 2022. On May 5, 2022, the Company released an $11.1 million general indemnification holdback to the sellers of Business Licenses in connection with the November 2020 acquisition of Business Licenses. The liability was included in accrued purchase price related to acquisitions – current on the consolidated balance sheet as of March 31, 2022. After March 31, 2022, but before the filing of this Form 10-Q, the Company acquired two businesses with closing cash payments that totaled $12.1 million.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Interim Financial Information	Interim Financial Information The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as amended by the Form 10-K/A for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on May 5, 2022 (the “Amended 2021 Annual Report”). The accompanying interim consolidated balance sheet as of March 31, 2022, the consolidated interim statements of operations, consolidated statements of comprehensive loss, and the consolidated statements of cash flows for the three months ended March 31, 2022, are unaudited. The unaudited interim consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the consolidated financial statements. The operating results for the three months ended March 31, 2022, are not necessarily indicative of the results expected for the full year ending December 31, 2022.
Prior Period Restatements and Adjustments	Prior Period Restatements and Adjustments While preparing the financial statements for the first quarter of 2022, the Company discovered an error in its recognition of stock-based compensation expense for restricted stock units (“RSUs”) impacting previously reported interim and annual consolidated financial statements. In the previously presented consolidated financial statements, the correction resulted in an increase of $0.1 million to stock-based compensation and an increase of $0.1 million to net loss on the consolidated statement of operations and the consolidated statement of cash flows for the three months ended March 31, 2021. The correction increased net loss and total comprehensive loss by $0.1 million on the consolidated statement of comprehensive loss for the three months ended March 31, 2021. The correction did not change total net cash used in operating activities on the consolidated statement of cashflows for the three months ended March 31, 2021. The correction increased additional paid-in capital and accumulated deficit by $0.1 million, with no change to total shareholders’ equity, on the consolidated statement of shareholders’ equity as of March 31, 2021. An explanation of the impact on the consolidated financial statements is contained in “Note 15—Correction of Previously Issued Consolidated Financial Statements” to the accompanying consolidated financial statements included in the Amended 2021 Annual
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include those of the Company, its subsidiaries, and a variable interest entity for which the Company is the primary beneficiary, after elimination of all intercompany accounts and transactions.
Segments	Segments The Company operates its business as one operating segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, the Company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level.
Use of Estimates	Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and judgments related to revenue are described below in the Revenue Recognition Accounting Policy. Significant estimates impacting expenses include: expected credit losses associated with the allowance for doubtful accounts; the measurement of fair values of stock-based compensation award grants; the expected payout level of performance share unit grants; the expected earnout obligations in connection with acquisitions; the expected term of the customer relationship for capitalized contract cost amortization; the valuation and useful lives of acquired intangible assets; the valuation of the fair value of reporting units for analyzing goodwill; and the capitalization and useful life of capitalized software development costs. Actual results could materially differ from those estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 : Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 : Inputs are quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 : Inputs are unobservable inputs based on the Company’s assumptions and valuation techniques used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The Company’s assessment of the significance of an input to the fair value measurement requires judgment, which may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash equivalents, restricted cash equivalents, trade accounts receivable, trade payables, and accrued expenses, due to their short-term nature. The Company has measured the fair value of money market funds and available-for-sale securities based on quoted prices in active markets for identical assets and liabilities. T he Company carries its Convertible Senior Notes at par value less unamortized debt issuance costs on its consolidated balance sheets and presents the fair value for disclosure purposes only.
Customer Funds Assets and Obligations	Customer Funds Assets and Obligations The Company has established a Delaware statutory trust (the “Customer Trust”) and appointed a federally insured bank as trustee, and the Customer Trust holds certain funds provided by its customers pending remittance to tax authorities. The Company is the sole beneficial owner of the Customer Trust. The Customer Trust is intended to be a bankruptcy-remote legal entity and meets the criteria in Accounting Standards Codification (“ASC”) Topic 810, Consolidation In 2021, certain customers began to remit tax payments to the Customer Trust with almost all customer funds remitted to and held by the Customer Trust as of December 31, 2021. Funds held from customers represent restricted cash equivalents and available-for-sale securities that, based upon the Company’s intent, are restricted solely for satisfying the obligations to remit funds relating to the Company’s tax remittance services. Customer fund obligations represent the Company’s contractual obligations to remit funds to satisfy customers’ tax obligations and are recorded on the consolidated balance sheets at the time that the Company or the Customer Trust collects funds from customers. The following table details funds held from customers and customer fund obligations held by the Company and by the Customer Trust as of March 31, 2022 March 31, December 31, 2022 2021 Funds held from customers (current assets): Restricted cash equivalents – Company $ 647 $ 13 Restricted cash equivalents – Customer Trust 63,353 62,126 Available-for-sale securities – Customer Trust 359 370 Funds held from customers $ 64,359 $ 62,509 Customer fund obligations (current liabilities): Customer fund obligations – Company 66,368 64,302 Customer fund obligations $ 66,368 $ 64,302 Receivable from customers, net was $1.6 million and $1.5 million as of March 31, 2022, and December 31, 2021, respectively.
Business Combinations and Goodwill	Business Combinations and Goodwill The Company’s identifiable assets acquired and liabilities assumed in a business combination are recorded at their acquisition date fair values, which may be considered preliminary and subject to adjustment during the measurement period, which is up to one year from the acquisition date. The valuation requires management to make significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to: • future expected cash flows from customer agreements, customer lists, distribution agreements, non-compete agreements, and proprietary content and technology; • assumptions about the length of time the brand will continue to be used in the Company’s suite of solutions; • royalty rates used to estimate the fees that could be charged to license the proprietary content and technology; and • discount rates used to determine the present value of recognized assets and liabilities. The Company’s estimates of fair value are based upon assumptions it believes to be reasonable, but that are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate, and unanticipated events and circumstances may occur. Goodwill is calculated as the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Acquisition-related costs, including advisory, legal, accounting, valuation, and other costs, are expensed in the periods in which these costs are incurred. The results of operations of an acquired business are included in the consolidated financial statements beginning at the acquisition date. Goodwill is tested for impairment annually on October 31, or in the event of certain occurrences. There was no goodwill impairment recorded for the three months ended March 31, 2022 or 2021. The Company estimates the fair value of the earnout liabilities related to business combinations using various valuation approaches, as well as significant unobservable inputs, reflecting the Company’s assessment of the assumptions market participants would use to value these liabilities. Following final determination of the acquisition date fair value, the fair value of the earnout is remeasured each reporting period, with any change in the value recorded as fair value changes in earnout liabilities in the consolidated statements of operation.
Acquired Intangible Assets	Acquired Intangible Assets Acquired intangible assets consist of developed technology, including in-process research and development (“IPR&D”), customer relationships, backlog, database content, noncompetition agreements, and tradenames and trademarks, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. IPR&D is initially capitalized at fair value as a developed technology intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, it is amortized over the asset’s estimated useful life. The Company recognizes an earnout liability for acquisitions of intangible assets that are accounted for as an asset acquisition when the liability is earned and the amount is known. The earnout liability is capitalized as part of the cost of the assets acquired and amortized over the remaining useful life of the asset. Asset acquisition-related costs, primarily legal fees, are capitalized and included in the cost basis of the intangible asset when incurred.
Capitalized Software	Capitalized Software Software development costs for internal-use software (i.e., cloud-based software solutions) are capitalized once the project is in the application development stage in accordance with the accounting guidance for internal-use software. These capitalized costs include external direct costs of services consumed in developing or obtaining the software and personnel expenses for employees who are directly associated with the development. Capitalization of these costs concludes once the project is substantially complete, and the software is ready for its intended purpose. Post-configuration training and maintenance costs are expensed as incurred. For the , $5.4 million and $2.5 million of software development costs were capitalized, respectively. Capitalized software development costs are amortized on a straight-line basis over the estimated useful life, generally 3 to 6 years. Software development costs are tested for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets In circumstances where software is developed for both cloud-based software solutions and for the purpose of being sold, leased, or otherwise marketed (i.e., customer hosted software), capitalization of development costs occurs after technological feasibility of the software is established and continues until the product is available for general release to customers. Since the Company’s developed software is available for general release concurrent with the establishment of technological feasibility, development costs are not capitalized in these circumstances.
Long-Lived Assets	Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. An impairment is recognized in the event the carrying value of such assets is not recoverable. If the carrying value is not recoverable, the fair value is determined, and an impairment is recognized for the amount by which the carrying value exceeds the fair value. No impairment of long-lived assets occurred in the three months ended March 31, 2022 or 2021.
Leases	L eases Leases arise from contracts which convey the right to control the use of identified property or equipment for a period of time in exchange for consideration. The Company’s leasing arrangements are primarily for office space used to conduct operations. The Company determines whether an arrangement is or contains a lease at the inception date, based on whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. Leases commence when the lessor makes the asset available for use. Leases are classified at commencement as either operating or finance leases. All the Company’s leases are classified as operating leases. Rent expense for operating leases is recognized on the straight-line method over the term of the agreement beginning on the lease commencement date. Lease-related costs, which are variable rather than fixed, are expensed in the period incurred. Variable lease costs consist primarily of common area maintenance and utilities costs for the Company’s office spaces that are due based on the actual costs incurred by the landlord. Lease payments that depend on an index or a rate are measured using the index or rate at the commencement date and are included in operating lease costs. Subsequent increases to lease payments due to a change in the index or rate are expensed as a variable lease cost.
Convertible Senior Notes	Convertible Senior Notes In August 2021, the Company completed a private offering of $977.5 million principal amount of 0.25% convertible senior notes due 2026 (the “2026 Notes”). The 2026 Notes are accounted for as debt, with no bifurcation of the embedded conversion feature. Debt issuance costs related to the Company’s issuance of the 2026 Notes consist primarily of purchaser’s discounts, commissions, and related costs. The debt issuance costs were recorded as a direct deduction from the liability associated with the 2026 Notes on the consolidated balance sheet and are amortized to interest expense over the term of the 2026 Notes. In connection with the offering of the 2026 Notes, the Company purchased capped calls from certain financial institutions with respect to its common stock. As the capped calls are both legally detachable and separately exercisable from the 2026 Notes, the Company accounts for the capped calls separately from the 2026 Notes. The capped calls are indexed to the Company’s own common stock and classified in stockholder’s equity. As such, the premiums paid for the capped calls have been included as a net reduction to additional paid-in capital in the consolidated balance sheet as of March 31, 2022, and December 31, 2021.
Income Taxes	Income Taxes The Company’s deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and income tax basis of assets and liabilities and are measured using the tax rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. The Company assesses its income tax positions and records a tax benefit or expense based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. The Company will recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Judgment is required in assessing the future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact the consolidated financial statements.
Revenue Recognition	Revenue Recognition The Company primarily generates revenue from fees paid for subscriptions to tax compliance solutions and fees paid for services performed in preparing and filing tax returns on behalf of its customers. Amounts that have been invoiced are recorded in trade accounts receivable and deferred revenue, contract liabilities, or revenue, depending upon whether the revenue recognition criteria have been met. Revenue is recognized once the customer is provisioned and as services are provided in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following five-step framework: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. The Company identifies performance obligations in its contracts with customers, which primarily include subscription services and professional services. The transaction price is determined based on the amount which the Company expects to be entitled to in exchange for providing the promised services to the customer. The transaction price in the contract is allocated to each distinct performance obligation on a relative standalone selling price basis. Revenue is recognized when performance obligations are satisfied. Contract payment terms are typically net 30 days. Collectability is assessed based on a number of factors including collection history and creditworthiness of the customer, and the Company may mitigate exposure to credit risk by requiring payments in advance. If collectability of substantially all consideration to which the Company is entitled under the contract is determined to be not probable, revenue is not recorded until collectability becomes probable at a later date. Revenue is recorded based on the transaction price excluding amounts collected on behalf of third parties, such as sales taxes collected and remitted to governmental authorities. Subscription and Returns Revenue Subscription and returns revenue primarily consist of contractually agreed upon fees paid for using the Company’s cloud-based solutions, which include tax calculation, preparing and filing transaction tax returns, compliance document management, and tax content subscription services. Under the Company’s subscription agreements, customers select a price plan that includes an allotted maximum number of transactions or number of jurisdictions over the subscription term. Unused transactions are not carried over to the customer’s next subscription term, and customers are not entitled to refunds of fees paid or relief from fees due in the event they do not use the allotted number of transactions. If customers exceed the maximum transaction level within their price plan, the Company will generally upgrade the customer to a higher transaction price plan or, in some cases, charge overage fees on a per transaction basis. Fees paid for subscription services to tax content vary depending on the volume of tax information accessible to the customer. The Company’s subscription arrangements do not provide the customer with the right to take possession of the software supporting the cloud-based application services. The Company’s standard subscription contracts are non-cancelable except where contract terms provide rights to cancel in the first 60 days of the contract term. Cancellations under the Company’s standard subscription contracts are not material, and do not have a significant impact on revenue recognized. Tax returns processing services include collection of tax data and amounts, preparation of compliance forms, and submission to taxing authorities. Returns processing services are primarily charged on a subscription basis for an allotted number of returns to process within a given time period. The Company earns Streamlined Sales Tax (“SST”) revenue from participating state and local governments based on a percentage of the sales tax reported and paid. Revenue is recognized ratably over the contractual term of the arrangement, beginning on the date that the service is made available to the customer. The Company invoices its subscription customers for the initial term at contract signing and at each subscription renewal. Initial terms generally range from 12 to 18 months, and renewal periods are typically one year. Amounts that are contractually billable and have been invoiced, or which have been collected as cash, are initially recorded as deferred revenue or contract liabilities. While historically most of the Company's customers are invoiced once at the beginning of the term, an increasing portion of customers are invoiced semi-annually, quarterly, or monthly. Included in the total subscription fee for cloud-based solutions are non-refundable upfront fees that are typically charged to new customers. These fees are associated with work performed to set up a customer with the Company’s services, and do not represent a distinct good or service. Instead, the fees are included within the transaction price and allocated to the remaining performance obligations in the contract. The Company recognizes revenue for these fees in accordance with the revenue recognition for those performance obligations. Also included in subscription and returns revenue is interest income on funds held from customers. The Company uses trust accounts at FDIC-insured institutions to provide tax remittance services to customers and collect funds from customers in advance of remittance to tax authorities. After collection and prior to remittance, the Company earns interest on these funds. Professional Services Revenue The Company generates professional services revenue from providing tax analysis and services, including business licenses and tax registrations, tax refund claims and recovery assistance, Judgments and Estimates The Company’s contracts with customers often include obligations to provide multiple services to a customer. Determining whether services are considered distinct performance obligations that should be accounted for separately from one another requires judgment. Subscription services and professional services are both distinct performance obligations that are accounted for separately. Judgment is required to determine the standalone selling price (“SSP”) for each distinct performance obligation. The Company allocates revenue to each performance obligation based on the relative SSP. The Company determines SSP for performance obligations based on overall pricing objectives, which take into consideration observable prices, market conditions and entity-specific factors. This includes a review of historical data related to the services being sold and customer demographics. The Company uses a range of amounts to estimate SSP for performance obligations. There is typically more than one SSP for individual services due to the stratification of those services by information, such as size and type of customer.
Assets Recognized from the Costs to Obtain a Contract with a Customer	Assets Recognized from the Costs to Obtain a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain costs related to employee sales incentive programs (sales commissions) and partner commission programs represent incremental costs of obtaining a contract and therefore should be capitalized. Capitalized costs are included in deferred commissions on the consolidated balance sheets. These deferred commissions are amortized over an estimated period of benefit, generally six years. The Company determines the period of benefit by taking into consideration past experience with customers, the expected life of acquired technology that generates revenue, industry peers, and other available information. The period of benefit is generally longer than the term of the initial contract because of anticipated renewals. The Company elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset would have been one year or less.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation by calculating the fair value of each option, RSU, or performance share unit (“PSU”) issued under the 2018 Equity Incentive Plan (the “2018 Plan”)
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards There are no accounting standards that have been recently adopted.
New Accounting Standards Not Yet Adopted	New Accounting Standards Not Yet Adopted ASU 2021-08 In October 2021, the Financial Accounting Standards Board issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an entity generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively to businesses combinations occurring on or after the effective date of the amendment. Early adoption is permitted, including adoption in an interim period. The Company currently expects to adopt this new guidance in the first quarter of 2023 and is currently evaluating the impact of this new guidance on the consolidated financial statements.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Funds Held from Customers and Customer Fund Obligations Held by Company and by Customer Trust	The following table details funds held from customers and customer fund obligations held by the Company and by the Customer Trust as of March 31, 2022 March 31, December 31, 2022 2021 Funds held from customers (current assets): Restricted cash equivalents – Company $ 647 $ 13 Restricted cash equivalents – Customer Trust 63,353 62,126 Available-for-sale securities – Customer Trust 359 370 Funds held from customers $ 64,359 $ 62,509 Customer fund obligations (current liabilities): Customer fund obligations – Company 66,368 64,302 Customer fund obligations $ 66,368 $ 64,302

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following financial assets and liabilities are measured at fair value on a recurring basis. The fair values recognized in the accompanying consolidated balance sheets and the level within the fair value hierarchy in which the fair value measurements fall is as follows (in thousands): Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Identical Assets Inputs Inputs March 31, 2022 Value (Level 1) (Level 2) (Level 3) Money market funds $ 1,405,965 $ 1,405,965 $ — $ — Available-for-sale securities: U.S. treasury securities 359 359 — — Earnouts related to business combinations 96,757 — — 96,757 Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Identical Assets Inputs Inputs December 31, 2021 Value (Level 1) (Level 2) (Level 3) Money market funds $ 1,439,522 $ 1,439,522 $ — $ — Available-for-sale securities: U.S. treasury securities 370 370 — — Earnouts related to business combinations 113,978 — — 113,978
Summary of Assumptions Used to Calculate the Estimated Earnout Liabilities	The following table provides summary information of the assumptions used to calculate the estimated earnout liabilities related to 2021 and 2020 acquisitions (in thousands): Discount Rate as of Balance as of Balance as of Acquisition Year of Acquisition Earnout Target Method Earnout Period March 31, 2022 March 31, 2022 December 31, 2021 CrowdReason 2021 Specific revenue growth thresholds through October 2024, a cap of $30.0 million is available; to be settled in cash. Probability-weighted discounted cash flows and Monte Carlo simulation October 2024 5.0 % (a) $ 24,368 $ 26,320 Track1099 2021 Specific revenue growth thresholds through April 2023, with a cap of $12.5 million; to be settled in cash. Probability-weighted discounted cash flows and Monte Carlo simulation April 2023 10.0 % (a) 6,570 7,880 Davo 2021 Specific revenue growth thresholds through March 2023, with no cap; to be settled in cash. Probability-weighted discounted cash flows and Monte Carlo simulation March 2023 8.0 % (a) 34,940 35,885 Transaction Tax Resources (“TTR”) 2020 Specific revenue growth thresholds through December 2022, with cap of $26.4 million; to be settled in cash. Probability-weighted discounted cash flows and Monte Carlo simulation December 2022 15.0 % (c) 11,910 24,830 Business Licenses 2020 Achievement of certain performance metrics through November 2024, with cap of $20.7 million; to be settled in common stock. Scenario-based approach November 2024 6.2 % (b) 18,969 19,063 Balance end of period $ 96,757 $ 113,978 (a) The discount rate was calculated using the build-up method with a risk-free rate commensurate with the term of the earnout based on the equity, asset and revenue betas, size premium, and the Company’s specific risk premium, as well as the market risk premium using a bottom-up approach. (b) The discount rate was based on the Company's estimated credit yield. The Business Licenses earnout was assumed by management to have a high probability of achievement. (c) $13.2 million was paid on March 2, 2022 in satisfaction of the first earnout period for TTR. The second earnout period, if achieved, is payable in March 2023
Summary of Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements	A reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs, is as follows (in thousands): For the Three Months Ended March 31, 2022 2021 Earnout liabilities related to business combinations: Balance beginning of period $ 113,978 $ 34,501 Measurement period adjustments — 1,802 Payments of earnout liabilities (13,220 ) — Fair value changes included in total other expense (income), net (4,001 ) 1,350 Balance end of period $ 96,757 $ 37,653

Balance Sheet Detail (Tables)

Balance Sheet Detail (Tables)	3 Months Ended
	Mar. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): Useful March 31, December 31, Life (Years) 2022 2021 Computer equipment and software 3 to 5 $ 21,240 $ 19,923 Internally developed software 3 to 6 32,244 27,099 Furniture and fixtures 5 6,428 6,425 Office equipment 2 to 5 1,343 1,275 Leasehold improvements 1 to 10 30,102 30,046 91,357 84,768 Accumulated depreciation (41,989 ) (38,304 ) Property and equipment—net $ 49,368 $ 46,464
Schedule of Prepaid Expense And Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2022 2021 Licenses and subscriptions $ 18,670 $ 14,511 Prepaid and other current taxes 2,444 3,132 Deposits 4,903 3,746 Prepaid employee related expenses 2,755 2,780 Prepaid cloud computing implementation costs 2,262 1,708 Prepaid insurance 3,960 — Other 4,320 3,390 Total $ 39,314 $ 29,267
Schedule of Accrued Expenses	Accrued expenses consisted of the following (in thousands): March 31, December 31, 2022 2021 Accrued bonus $ 11,476 $ 40,853 Accrued partner commissions 14,133 13,088 Accrued payroll and related taxes 15,127 10,208 Employee stock purchase plan contributions 3,463 7,113 Accrued sales commissions 5,422 7,007 Contract liabilities 897 6,918 Accrued federal, state, local, and foreign taxes 3,574 3,926 Self-insurance reserves 2,471 2,401 Accrued interest payable on Convertible Senior Notes 414 944 Other 12,125 17,334 Total $ 69,102 $ 109,792

Acquisitions of Businesses (Tab

Acquisitions of Businesses (Tables)	3 Months Ended
	Mar. 31, 2022
Business Acquisition [Line Items]
Schedule of Pro Forma Financial Information (Unaudited)	For the Three Months Ended March 31, 2022 2021 Total revenue $ 204,530 $ 163,275 Pre-tax loss (32,272 ) (27,806 )
Inposia | Fair Value
Business Acquisition [Line Items]
Summary of Total Consideration	T Total Consideration Cash paid at closing (net of amounts returned) $ 14,456 Fair value of common stock issued at closing 22,971 Total consideration $ 37,427
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed	Fair values of the assets acquired and the liabilities assumed in the Inposia Purchase as of the acquisition date are provided in the following table (in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 1,264 Trade accounts receivable 1,767 Other current assets 268 Operating lease right-of-use assets 928 Property and equipment 98 Developed technology, customer relationships, and other intangibles 14,269 Goodwill 26,520 Other noncurrent assets 35 Total assets acquired 45,149 Liabilities assumed: Trade payables and accrued expenses 1,478 Deferred revenue 810 Other liabilities, noncurrent 106 Operating lease liabilities 928 Deferred tax liability 4,400 Total liabilities assumed 7,722 Net assets acquired $ 37,427
Summary of Valuation Methodologies, Significant Assumptions and Estimated Useful Lives	A summary of the valuation methodologies, significant assumptions, and estimated useful lives of acquired intangible assets in the Inposia Purchase are provided in the below table (in thousands): Intangible Fair Value Valuation Methodology Discount Rate Estimated Useful Life Customer relationships $ 3,288 Multi-period excess earnings-income approach 18.5% 8 years Developed technology 9,572 Relief from royalty-income approach 18.5% 6 years Noncompetition agreements 1,174 With-and-without valuation-income approach 21.0% 3 years Tradename 235 Relief from royalty-income approach 18.5% 3 years
Davo | Fair Value
Business Acquisition [Line Items]
Summary of Total Consideration	T Total Consideration Cash paid through closing $ 23,818 Fair value of earnout provision 30,338 Fair value of holdbacks 2,591 Total consideration $ 56,747
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed	Fair values of the assets acquired and the liabilities assumed in the Davo Purchase as of the acquisition date are provided in the following table (in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 198 Funds held from customers 12,464 Trade accounts receivable 119 Other current assets 58 Operating lease right-of-use assets 46 Developed technology, customer relationships, and other intangibles 4,651 Goodwill 51,911 Other noncurrent assets 2 Total assets acquired 69,449 Liabilities assumed: Accrued expenses 117 Deferred revenue 75 Operating lease liabilities 46 Customer fund obligations 12,464 Total liabilities assumed 12,702 Net assets acquired $ 56,747
Summary of Valuation Methodologies, Significant Assumptions and Estimated Useful Lives	A summary of the valuation methodologies, significant assumptions, and estimated useful lives of acquired intangible assets in the Davo Purchase are provided in the below table (in thousands): Intangible Fair Value Valuation Methodology Discount Rate Estimated Useful Life Customer relationships $ 2,050 Multi-period excess earnings-income approach and replacement cost method-cost approach 13.5% 6 years Developed technology 1,950 Relief from royalty-income approach 13.5% 5 years Noncompetition agreements 564 With-and-without valuation-income approach 15.5% 5 years Tradename 87 Relief from royalty-income approach 13.5% 1 year
Track1099 LLC | Fair Value
Business Acquisition [Line Items]
Summary of Total Consideration	Preliminary total consideration as of March 31, 2022, is presented below (in thousands): Total Consideration (preliminary) Cash paid through closing $ 35,000 Fair value of earnout provision 8,820 Fair value of holdbacks 4,984 Total consideration $ 48,804
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed	Preliminary estimated fair values of the assets acquired and the liabilities assumed in the Track1099 Purchase as of the acquisition date are provided in the following table (in thousands): Fair Value (preliminary) Assets acquired: Prepaid and other current assets $ 2 Developed technology, customer relationships, and other intangibles 5,850 Goodwill 42,962 Total assets acquired 48,814 Liabilities assumed: Current liabilities 1 Deferred revenue 9 Total liabilities assumed 10 Net assets acquired $ 48,804
Summary of Valuation Methodologies, Significant Assumptions and Estimated Useful Lives	A summary of the valuation methodologies, significant assumptions, and estimated useful lives of acquired intangible assets in the Track1099 Purchase are provided in the table below (in thousands): Intangible Assigned Value Valuation Methodology Discount Rate Estimated Useful Life Customer relationships $ 3,200 Multi-period excess earnings-income approach 28.0% 5 years Developed technology 1,250 Relief from royalty-income approach 28.0% 2 years Noncompetition agreement 1,300 With-and-without valuation-income approach 30.0% 5 years Tradename 100 Relief from royalty-income approach 28.0% 2 years
CrowdReason LLC and CorrelationAdvisors | Fair Value
Business Acquisition [Line Items]
Summary of Total Consideration	Preliminary total consideration as of March 31, 2022, is presented below (in thousands): Total Consideration (preliminary) Cash paid through closing $ 8,317 Fair value of earnout provision 26,320 Fair value of holdbacks 1,727 Total consideration $ 36,364
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed	Preliminary estimated fair values of the assets acquired and the liabilities assumed in the CrowdReason Purchase as of the acquisition date are provided in the following table (in thousands): Fair Value (preliminary) Assets acquired: Current assets $ 1,426 Developed technology, customer relationships, and other intangibles 10,300 Goodwill 25,415 Total assets acquired 37,141 Liabilities assumed: Current liabilities 101 Deferred revenue & contract liabilities 676 Total liabilities assumed 777 Net assets acquired $ 36,364
Summary of Valuation Methodologies, Significant Assumptions and Estimated Useful Lives	A summary of the valuation methodologies, significant assumptions, and estimated useful lives of acquired intangible assets in the CrowdReason Purchase are provided in the table below (in thousands): Intangible Assigned Value Valuation Methodology Discount Rate Estimated Useful Life Customer relationships $ 5,700 Multi-period excess earnings-income approach 18.0% 5 to 8 years Developed technology 3,900 Relief from royalty-income approach 18.0% 5 years Backlog 450 Multi-period excess earnings-income approach 15.0% 1 year Noncompetition agreements 100 With-and-without valuation-income approach 20.0% 5 years Tradename 150 Relief from royalty-income approach 18.0% 2 years

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue From Contract With Customer [Abstract]
Summary of Total Revenues	The following table disaggregates revenue generated within the United States (“U.S.”) from revenue generated from customers outside of the U.S. Revenue for transaction tax compliance in the U.S. is further disaggregated based on the solutions or services purchased by customers. Total revenues consisted of the following (in thousands): For the Three Months Ended March 31, 2022 2021 Revenue (U.S.): Subscription and returns Tax calculations $ 100,500 $ 76,396 Tax returns and compliance management 73,727 52,847 Interest income on funds held for customers 208 141 Total subscription and returns 174,435 129,384 Professional services 16,041 13,288 Total revenue (U.S.) 190,476 142,672 Total revenue (non-U.S.) 14,054 10,929 Total revenue $ 204,530 $ 153,601
Summary of Activity Impacting Contract Liabilities	A summary of the activity impacting the contract liabilities during the three months ended March 31, 2022 and 2021, is presented below (in thousands): For the Three Months Ended March 31, 2022 2021 Contract liabilities: Balance beginning of period $ 6,918 $ 10,134 Contract liabilities transferred to deferred revenue (6,622 ) (3,866 ) Addition to contract liabilities 601 6,198 Balance end of period $ 897 $ 12,466
Summary of Activity Impacting Deferred Revenue	A summary of the activity impacting deferred revenue balances during the three months ended March 31, 2022 and 2021, is presented below (in thousands): For the Three Months Ended March 31, 2022 2021 Deferred revenue: Balance beginning of period $ 282,955 $ 209,690 Revenue recognized (204,530 ) (153,601 ) Additional amounts deferred 225,185 169,442 Balance end of period $ 303,610 $ 225,531
Summary of Activity Impacting Deferred Commissions	A summary of the activity impacting the deferred commissions during the three months ended March 31, 2022, is presented below (in thousands): For the Three Months Ended March 31, 2022 2021 Deferred commissions: Balance beginning of period $ 68,519 $ 50,870 Additional commissions deferred 6,832 5,695 Amortization of deferred commissions (4,584 ) (3,335 ) Balance end of period $ 70,767 $ 53,230

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Finite-lived Intangible Assets	Intangible assets consisted of the following (in thousands): March 31, 2022 Useful Life (Years) Gross Accumulated Amortization Net Backlog 1 to 7 $ 4,500 $ (2,249 ) $ 2,251 Customer relationships 5 to 10 75,162 (26,527 ) 48,635 Developed technology (1) 1 to 6 73,204 (40,516 ) 32,688 Noncompetition agreements 3 to 5 6,445 (2,064 ) 4,381 Tradename and trademarks 1 to 3 7,272 (5,452 ) 1,820 $ 166,583 $ (76,808 ) $ 89,775 (1) December 31, 2021 Useful Life (Years) Gross Accumulated Amortization Net Backlog 3 $ 4,500 $ (1,816 ) $ 2,684 Customer relationships 3 to 10 75,188 (23,795 ) 51,393 Developed technology (1) 3 to 8 72,723 (37,333 ) 35,390 Noncompetition agreements 3 to 5 6,452 (1,725 ) 4,727 Tradename and trademarks 1 to 4 7,267 (4,643 ) 2,624 $ 166,130 $ (69,312 ) $ 96,818 (1)
Schedule of Changes in Carrying Amount of Goodwill	Changes in the carrying amount of goodwill for the three months ended March 31, 2022, Balance—December 31, 2021 $ 672,381 Cumulative translation adjustments (950 ) Balance—March 31, 2022 $ 671,431

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Summary of Net Carrying Amount of Notes	The net carrying amount of the 2026 Notes was as follows (in thousands): March 31, December 31, 2022 2021 Principal $ 977,500 $ 977,500 Unamortized debt issuance costs (15,356 ) (16,241 ) Net carrying amount $ 962,144 $ 961,259
Summary of Interest Expense Recognized	The following table sets forth the interest expense recognized related to the 2026 Notes (in thousands): For the Three Months Ended March 31, 2022 Contractual interest expense $ 611 Amortization of debt issuance costs 885 Total interest expense related to 2026 Notes $ 1,496

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2022
Stockholders Equity Note [Abstract]
Summary of Changes of Shareholders' Equity	The changes to the Company’s shareholders’ equity during the three months ended March 31, 2022, Accumulated Additional Other Total Common Stock Paid-In Comprehensive Accumulated Shareholders’ Shares Amount Capital Loss Deficit Equity Balance at January 1, 2022 87,086,665 $ 9 $ 1,732,742 $ (3,428 ) $ (702,869 ) $ 1,026,454 Exercise of stock options 107,623 2,281 2,281 Vesting of restricted stock units 466,497 Vesting of performance share units 38,291 Stock-based compensation cost 33,371 33,371 Shares issued under employee stock purchase plan 85,926 8,006 8,006 Loss on translation adjustment (1,347 ) (1,347 ) Net loss (32,557 ) (32,557 ) Balance at March 31, 2022 87,785,002 $ 9 $ 1,776,400 $ (4,775 ) $ (735,426 ) $ 1,036,208 The changes to the Company’s shareholders’ equity for the three months ended March 31, 2021, is as follows (in thousands, except share data): Accumulated Additional Other Total Common Stock Paid-In Comprehensive Accumulated Shareholders’ Shares Amount Capital Loss Deficit Equity Balance at January 1, 2021 85,057,727 $ 9 $ 1,648,741 $ (1,339 ) $ (567,251 ) $ 1,080,160 Exercise of stock options 296,226 5,529 5,529 Vesting of restricted stock units 346,008 Stock-based compensation cost 19,127 19,127 Shares issued under employee stock purchase plan 60,064 7,088 7,088 Loss on translation adjustment (390 ) (390 ) Net loss (30,068 ) (30,068 ) Balance at March 31, 2021 85,760,025 $ 9 $ 1,680,485 $ (1,729 ) $ (597,319 ) $ 1,081,446

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	3 Months Ended
	Mar. 31, 2022
Summary of Stock-Based Compensation Expense Related to Equity Incentive Rewards	The Company recognized total stock-based compensation cost related to equity incentive awards as follows (in thousands): For the Three Months Ended March 31, 2022 2021 Stock-based compensation cost: Stock options $ 2,161 $ 3,223 Restricted stock units 22,128 11,769 Performance share units 7,813 2,832 Employee stock purchase plan 1,269 1,303 Total stock-based compensation cost $ 33,371 $ 19,127
Summary of Stock Option Activity	Stock Options The following table summarizes stock option activity for the Company’s stock-based compensation plans for the three months ended March 31, 2022: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Life (in Years) (in thousands) Options outstanding as of January 1, 2022 2,278,789 $ 33.52 6.30 $ 217,824 Options granted — $ — Options exercised (107,623 ) $ 21.20 Options cancelled or expired (4,291 ) $ 111.83 Options outstanding as of March 31, 2022 2,166,875 $ 33.98 6.08 $ 141,996 Options exercisable as of March 31, 2022 1,778,867 $ 28.90 5.81 $ 125,598
Summary of RSU Activity	The following table summarizes RSU activity for the Company’s stock-based compensation plans for the three months ended March 31, 2022: Weighted Average Grant Date Fair Restricted Stock Units Value Per Share RSUs outstanding as of January 1, 2022 2,861,963 $ 99.41 RSUs granted 1,903,805 97.15 RSUs vested (466,497 ) 80.86 RSUs cancelled (98,343 ) 94.81 RSUs outstanding as of March 31, 2022 4,200,928 $ 100.56
Summary of PSU Activity	The following table summarizes PSU activity for the Company’s stock-based compensation plans for the three months ended March 31, 2022: Weighted Average Grant Date Fair Performance Share Units Value Per Share PSUs outstanding as of January 1, 2022 114,890 $ 147.26 PSUs granted 223,363 98.90 PSUs vested (38,291 ) 147.26 PSUs cancelled — — PSUs outstanding as of March 31, 2022 299,962 $ 111.25
2018 Employee Stock Purchase Plan
Summary of Fair Value Estimated Using Black-Scholes Option Pricing Model Assumptions	For the periods presented, the fair value of ESPP purchase rights was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Three Months Ended March 31, 2022 2021 Fair market value of common stock $ 111.00 $ 152.35 Volatility 33% 34% Expected term 0.5 years 0.5 years Expected dividend yield n/a n/a Risk-free interest rate 0.48% 0.08%

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Shareholders (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Loss Per Common Share	The following table sets forth the computation of basic and diluted net loss per common share (in thousands, except per share data): For the Three Months Ended March 31, 2022 2021 Numerator: Net loss attributable to common shareholders $ (32,557 ) $ (30,068 ) Denominator: Weighted-average common shares outstanding-basic 87,463 85,436 Dilutive effect of share equivalents resulting from stock options, RSUs, PSUs, ESPP shares, and convertible senior notes (if converted) — — Weighted-average common shares outstanding-diluted 87,463 85,436 Net loss per common share, basic and diluted $ (0.37 ) $ (0.35 )
Schedule of Potential Shares Not Included in the Computation of Diluted Earnings Per Share	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because the impact of including them would have been antidilutive (in thousands): For the Three Months Ended March 31, 2022 2021 Options to purchase common shares 2,236 3,396 Unvested RSUs 2,853 2,258 Unvested PSUs 243 75 ESPP shares 9 7 Convertible senior notes (if converted) 4,100 — Total 9,441 5,736

Significant Accounting Polici_4

Significant Accounting Policies - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022USD ($)Segment	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)	Aug. 31, 2021USD ($)
Accounting Policies [Line Items]
Number of operating segment | Segment	1
Receivable from customers, net	$ 1,579,000		$ 1,472,000
Goodwill impairment	0	$ 0
Capitalized software development Costs	5,400,000	2,500,000
Impairment of long-lived assets	$ 0	0
Tax position likely of being realized upon ultimate settlement	greater than 50%
Percentage of likelihood of realization of tax position upon ultimate settlement, minimum	50.00%
Contract payment net terms	30 days
Concessions and cancellations period allowed for standard subscription contract prior to adoption	60 days
Revenue recognition, contractual renewal period	1 year
Deferred commission amortized period	6 years
2026 Notes
Accounting Policies [Line Items]
Principal amount	$ 977,500,000		$ 977,500,000	$ 977,500,000
Fixed interest rate				0.25%
Minimum
Accounting Policies [Line Items]
Revenue recognition initial contractual term	12 months
Maximum
Accounting Policies [Line Items]
Revenue recognition initial contractual term	18 months
Internally Developed Software | Minimum
Accounting Policies [Line Items]
Property and equipment, Useful Life	3 years
Internally Developed Software | Maximum
Accounting Policies [Line Items]
Property and equipment, Useful Life	6 years
Restatement Adjustment | Accounting Standards Update 2016-18
Accounting Policies [Line Items]
Increase of stock based compensation due to correction		100,000
Increase of net loss due to correction		100,000
Change in net cash used in operating activities due to correction		0
Increase of comprehensive loss due to correction		100,000
Increase of additional paid in capital due to correction		100,000
Increase of accumulated deficit due to correction		100,000
Change in total shareholders equity due to correction		$ 0

Significant Accounting Polici_5

Significant Accounting Policies - Summary of Funds Held from Customers and Customer Fund Obligations Held by Company and by Customer Trust (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Funds held from customers (current assets):
Funds held from customers	$ 64,359	$ 62,509
Customer fund obligations (current liabilities):
Customer fund obligations	66,368	64,302
Company
Customer fund obligations (current liabilities):
Customer fund obligations	66,368	64,302
Restricted Cash Equivalents | Company
Funds held from customers (current assets):
Funds held from customers	647	13
Restricted Cash Equivalents | Customer Trust
Funds held from customers (current assets):
Funds held from customers	63,353	62,126
Available-for-sale Securities | Customer Trust
Funds held from customers (current assets):
Funds held from customers	$ 359	$ 370

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Earnouts Related to Business Combinations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Liabilities	$ 96,757	$ 113,978
Significant Unobservable Inputs (Level 3) | Earnouts Related to Business Combinations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Liabilities	96,757	113,978
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Assets	1,405,965	1,439,522
Money Market Funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Assets	1,405,965	1,439,522
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Available-for-sale securities	359	370
U.S. Treasury Securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Available-for-sale securities	$ 359	$ 370

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assumptions Used to Calculate the Estimated Earnout Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Estimated earnout liabilities	$ 96,757	$ 113,978
CrowdReason LLC and CorrelationAdvisors
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Year of Acquisition	2021
Earnout Target	Specific revenue growth thresholds through October 2024, a cap of $30.0 million is available; to be settled in cash.
Method	Probability-weighted discounted cash flows and Monte Carlo simulation
Earnout Period	2024
Discount Rate	5.00%
Estimated earnout liabilities	$ 24,368	26,320
Track1099 LLC
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Year of Acquisition	2021
Earnout Target	Specific revenue growth thresholds through April 2023, with a cap of $12.5 million; to be settled in cash.
Method	Probability-weighted discounted cash flows and Monte Carlo simulation
Earnout Period	2023
Discount Rate	10.00%
Estimated earnout liabilities	$ 6,570	7,880
Davo Technologies LLC
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Year of Acquisition	2021
Earnout Target	Specific revenue growth thresholds through March 2023, with no cap; to be settled in cash.
Method	Probability-weighted discounted cash flows and Monte Carlo simulation
Earnout Period	2023
Discount Rate	8.00%
Estimated earnout liabilities	$ 34,940	35,885
Transaction Tax Resources, Inc.
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Year of Acquisition	2020
Earnout Target	Specific revenue growth thresholds through December 2022, with cap of $26.4 million; to be settled in cash.
Method	Probability-weighted discounted cash flows and Monte Carlo simulation
Earnout Period	2022
Discount Rate	15.00%
Estimated earnout liabilities	$ 11,910	24,830
Business Licenses
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Year of Acquisition	2020
Earnout Target	Achievement of certain performance metrics through November 2024, with cap of $20.7 million; to be settled in common stock.
Method	Scenario-based approach
Earnout Period	2024
Discount Rate	6.20%
Estimated earnout liabilities	$ 18,969	$ 19,063

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Assumptions Used to Calculate the Estimated Earnout Liabilities (Parenthetical) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Earnout paid	$ 10,770,000	$ 0
CrowdReason LLC and CorrelationAdvisors
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Earnout target, capital available to be settled in cash	$ 30,000,000
Earnout target, specific revenue growth thresholds period	2024-10
Discount Rate	5.00%
Earnout Period	2024
Method	Probability-weighted discounted cash flows and Monte Carlo simulation
Track1099 LLC
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Earnout target, capital available to be settled in cash	$ 12,500,000
Earnout target, specific revenue growth thresholds period	2023-04
Discount Rate	10.00%
Earnout Period	2023
Method	Probability-weighted discounted cash flows and Monte Carlo simulation
Davo Technologies LLC
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Earnout target, capital available to be settled in cash	$ 0
Earnout target, specific revenue growth thresholds period	2023-03
Discount Rate	8.00%
Earnout Period	2023
Method	Probability-weighted discounted cash flows and Monte Carlo simulation
Transaction Tax Resources, Inc.
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Earnout target, capital available to be settled in cash	$ 26,400,000
Earnout target, specific revenue growth thresholds period	2022-12
Earnout paid	$ 13,200,000
Discount Rate	15.00%
Earnout Period	2022
Method	Probability-weighted discounted cash flows and Monte Carlo simulation
Transaction Tax Resources, Inc. | Second Earnout Period
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Earnout Period	2023
Method	build-up method with a risk-free rate commensurate with the term of the earnout based on the equity, asset and revenue betas, size premium, and the Company’s specific risk premium, as well as the market risk premium using a bottom-up approach.
Business Licenses
Summary Of Assumptions Used To Calculate Estimated Earnout Liabilities [Line Items]
Earnout target, capital available to be settled in cash	$ 20,700,000
Earnout target, specific revenue growth thresholds period	2024-11
Discount Rate	6.20%
Earnout Period	2024
Method	Scenario-based approach

Fair Value Measurements - Sum_3

Fair Value Measurements - Summary of Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements (Details) - Recurring Basis - Significant Unobservable Inputs (Level 3) - Earnout Related to Acquisitions - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnout liabilities related to business combinations:
Balance beginning of period	$ 113,978	$ 34,501
Measurement period adjustments	0	1,802
Payments of earnout liabilities	(13,220)	0
Fair value changes included in total other expense (income), net	(4,001)	1,350
Balance end of period	$ 96,757	$ 37,653

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - 2026 Notes - Significant Other Observable Inputs (Level 2) $ in Millions	Mar. 31, 2022USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Principal amount	$ 977.5
Estimated fair value	$ 837.1

Balance Sheet Detail - Property

Balance Sheet Detail - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 91,357	$ 84,768
Accumulated depreciation	(41,989)	(38,304)
Property and equipment—net	49,368	46,464
Computer Equipment and Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 21,240	19,923
Computer Equipment and Software | Minimum
Property Plant And Equipment [Line Items]
Property and equipment, Useful Life	3 years
Computer Equipment and Software | Maximum
Property Plant And Equipment [Line Items]
Property and equipment, Useful Life	5 years
Internally Developed Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 32,244	27,099
Internally Developed Software | Minimum
Property Plant And Equipment [Line Items]
Property and equipment, Useful Life	3 years
Internally Developed Software | Maximum
Property Plant And Equipment [Line Items]
Property and equipment, Useful Life	6 years
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 6,428	6,425
Property and equipment, Useful Life	5 years
Office Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 1,343	1,275
Office Equipment | Minimum
Property Plant And Equipment [Line Items]
Property and equipment, Useful Life	2 years
Office Equipment | Maximum
Property Plant And Equipment [Line Items]
Property and equipment, Useful Life	5 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 30,102	$ 30,046
Leasehold Improvements | Minimum
Property Plant And Equipment [Line Items]
Property and equipment, Useful Life	1 year
Leasehold Improvements | Maximum
Property Plant And Equipment [Line Items]
Property and equipment, Useful Life	10 years

Balance Sheet Detail - Addition

Balance Sheet Detail - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Depreciation expense	$ 4	$ 2.6

Balance Sheet Detail - Prepaid

Balance Sheet Detail - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Prepaid Expense And Other Assets Current [Abstract]
Licenses and subscriptions	$ 18,670	$ 14,511
Prepaid and other current taxes	2,444	3,132
Deposits	4,903	3,746
Prepaid employee related expenses	2,755	2,780
Prepaid cloud computing implementation costs	2,262	1,708
Prepaid insurance	3,960
Other	4,320	3,390
Total	$ 39,314	$ 29,267

Balance Sheet Detail - Accrued

Balance Sheet Detail - Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Accrued bonus	$ 11,476	$ 40,853
Accrued partner commissions	14,133	13,088
Accrued payroll and related taxes	15,127	10,208
Employee stock purchase plan contributions	3,463	7,113
Accrued sales commissions	5,422	7,007
Contract liabilities	897	6,918	$ 12,466	$ 10,134
Accrued federal, state, local, and foreign taxes	3,574	3,926
Self-insurance reserves	2,471	2,401
Accrued interest payable on Convertible Senior Notes	414	944
Other	12,125	17,334
Total	$ 69,102	$ 109,792

Acquisitions of Businesses - Ad

Acquisitions of Businesses - Additional Information (Details) € in Millions	Oct. 18, 2021USD ($)	Oct. 01, 2021USD ($)	Sep. 07, 2021USD ($)	Apr. 20, 2021USD ($)	Apr. 01, 2021USD ($)shares	Apr. 01, 2021EUR (€)shares	Mar. 31, 2022USD ($)	Sep. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2021USD ($)
Business Acquisition [Line Items]
Goodwill							$ 671,431,000					$ 672,381,000
Accrued value of earnout related to acquisition							$ 0		$ 1,802,000
Inposia
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Apr. 1, 2021
Acquisition-related costs					$ 1,500,000						$ 1,000,000	$ 500,000
Total consideration transferred					37,400,000	€ 31.8	$ 37,427,000
Cash received on net working capital adjustments								$ 200,000
Consideration in cash					$ 12,200,000		$ 14,456,000	$ 14,500,000		$ 2,400,000
Common stock paid at acquisition closing | shares					164,416	164,416
Common stock consideration					$ 23,000
Term of releasing shares issued are held in escrow							18 months
Fair value discount rate based on estimated pre-tax cost of debt					4.00%	4.00%
Weighted average amortization period for intangibles					6 years 2 months 12 days	6 years 2 months 12 days
Goodwill					$ 26,500,000
Davo Technologies LLC
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Apr. 20, 2021
Acquisition-related costs				$ 100,000
Total consideration transferred				56,700,000			$ 56,747,000
Consideration in cash				$ 23,500,000			23,818,000		$ 300,000
Weighted average amortization period for intangibles				5 years 4 months 24 days
Goodwill				$ 51,900,000
Acquisition holdbacks with a fair value upon acquisition				2,600,000			2,591,000
Accrued value of earnout related to acquisition				30,300,000			$ 30,338,000
Business combination, additional cash to be paid, as consideration, during eighteen months following acquisition date				$ 2,600,000
3CE Technologies, Inc.
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Sep. 7, 2021
Total consideration transferred			$ 11,200,000
Consideration in cash			9,900,000
Goodwill			7,100,000
Acquisition holdbacks with a fair value upon acquisition			1,300,000
Developed technology, customer relationships, and other intangibles			$ 3,700,000
Track1099 LLC
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Oct. 1, 2021
Acquisition-related costs		$ 100,000
Total consideration transferred		48,800,000					$ 48,804,000
Consideration in cash		35,000,000					35,000,000
Goodwill		43,000,000
Acquisition holdbacks with a fair value upon acquisition		5,000,000					4,984,000
Accrued value of earnout related to acquisition		8,800,000					$ 8,820,000
Additional cash to be paid, as consideration, in twenty seven months		5,000,000
Maximum payout earned		12,500,000
Maximum payout earned in each earnout period		$ 6,250,000
Earnout arrangement term		12 months
CrowdReason LLC and CorrelationAdvisors
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Oct. 18, 2021
Acquisition-related costs	$ 200,000
Total consideration transferred	36,400,000						$ 36,364,000
Consideration in cash	8,300,000						8,317,000
Goodwill	25,400,000
Acquisition holdbacks with a fair value upon acquisition							1,727,000
Accrued value of earnout related to acquisition	26,300,000						$ 26,320,000
Maximum payout earned	$ 40,000,000
Earnout arrangement term	12 months
Additional cash to be paid as fair value of acquisition holdbacks	$ 1,700,000

Acquisitions of Businesses - Su

Acquisitions of Businesses - Summary of Total Consideration (Details) $ in Thousands, € in Millions	Apr. 20, 2021USD ($)	Apr. 01, 2021USD ($)	Apr. 01, 2021EUR (€)	Mar. 31, 2022USD ($)	Sep. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Business Acquisition [Line Items]
Fair value of earnout provision				$ 0		$ 1,802
Inposia
Business Acquisition [Line Items]
Cash paid at closing (net of amounts returned)		$ 12,200		14,456	$ 14,500		$ 2,400
Fair value of common stock issued at closing				22,971
Total consideration		$ 37,400	€ 31.8	37,427
Davo Technologies LLC
Business Acquisition [Line Items]
Cash paid at closing (net of amounts returned)	$ 23,500			23,818		$ 300
Fair value of earnout provision	30,300			30,338
Fair value of holdbacks	2,600			2,591
Total consideration	$ 56,700			$ 56,747

Acquisitions of Businesses - Sc

Acquisitions of Businesses - Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Oct. 18, 2021	Oct. 01, 2021	Apr. 20, 2021	Apr. 01, 2021
Assets acquired:
Goodwill	$ 671,431	$ 672,381
Inposia
Assets acquired:
Goodwill						$ 26,500
Inposia | Fair Value
Assets acquired:
Cash and cash equivalents						1,264
Trade accounts receivable						1,767
Other current assets						268
Operating lease right-of-use assets						928
Property and equipment						98
Developed technology, customer relationships, and other intangibles						14,269
Goodwill						26,520
Other noncurrent assets						35
Total assets acquired						45,149
Liabilities assumed:
Trade payables and accrued expenses						1,478
Deferred revenue						810
Other liabilities, noncurrent						106
Operating lease liabilities						928
Deferred tax liability						4,400
Total liabilities assumed						7,722
Net assets acquired						$ 37,427
Davo Technologies LLC
Assets acquired:
Goodwill					$ 51,900
Davo Technologies LLC | Fair Value
Assets acquired:
Cash and cash equivalents					198
Funds held from customers					12,464
Trade accounts receivable					119
Other current assets					58
Operating lease right-of-use assets					46
Developed technology, customer relationships, and other intangibles					4,651
Goodwill					51,911
Other noncurrent assets					2
Total assets acquired					69,449
Liabilities assumed:
Accrued expenses					117
Deferred revenue					75
Operating lease liabilities					46
Customer fund obligations					12,464
Total liabilities assumed					12,702
Net assets acquired					$ 56,747
Track1099 LLC
Assets acquired:
Goodwill				$ 43,000
Track1099 LLC | Fair Value
Assets acquired:
Prepaid and other current assets	2
Developed technology, customer relationships, and other intangibles	5,850
Goodwill	42,962
Total assets acquired	48,814
Liabilities assumed:
Current liabilities	1
Deferred revenue	9
Total liabilities assumed	10
Net assets acquired	48,804
CrowdReason LLC and CorrelationAdvisors
Assets acquired:
Goodwill			$ 25,400
CrowdReason LLC and CorrelationAdvisors | Fair Value
Assets acquired:
Current assets	1,426
Developed technology, customer relationships, and other intangibles	10,300
Goodwill	25,415
Total assets acquired	37,141
Liabilities assumed:
Current liabilities	101
Deferred revenue & contract liabilities	676
Total liabilities assumed	777
Net assets acquired	$ 36,364

Acquisitions of Businesses - _2

Acquisitions of Businesses - Summary of the Valuation Methodologies Significant Assumptions, and Estimated Useful Lives of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Oct. 18, 2021	Oct. 01, 2021	Apr. 20, 2021	Apr. 01, 2021	Mar. 31, 2022	Dec. 31, 2021
Customer Relationships | Minimum
Business Acquisition [Line Items]
Estimated Useful Life					5 years	3 years
Customer Relationships | Maximum
Business Acquisition [Line Items]
Estimated Useful Life					10 years	10 years
Customer Relationships | Inposia
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value				$ 3,288
Valuation Methodology				Multi-period excess earnings-income approach
Discount Rate				18.50%
Estimated Useful Life				8 years
Customer Relationships | Davo Technologies LLC
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value			$ 2,050
Valuation Methodology			Multi-period excess earnings-income approach and replacement cost method-cost approach
Discount Rate			13.50%
Estimated Useful Life			6 years
Customer Relationships | Track1099 LLC
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value		$ 3,200
Valuation Methodology		Multi-period excess earnings-income approach
Discount Rate		28.00%
Estimated Useful Life		5 years
Customer Relationships | CrowdReason LLC and CorrelationAdvisors
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value	$ 5,700
Valuation Methodology	Multi-period excess earnings-income approach
Discount Rate	18.00%
Customer Relationships | CrowdReason LLC and CorrelationAdvisors | Minimum
Business Acquisition [Line Items]
Estimated Useful Life	5 years
Customer Relationships | CrowdReason LLC and CorrelationAdvisors | Maximum
Business Acquisition [Line Items]
Estimated Useful Life	8 years
Developed Technology | Minimum
Business Acquisition [Line Items]
Estimated Useful Life					1 year	3 years
Developed Technology | Maximum
Business Acquisition [Line Items]
Estimated Useful Life					6 years	8 years
Developed Technology | Inposia
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value				$ 9,572
Valuation Methodology				Relief from royalty-income approach
Discount Rate				18.50%
Estimated Useful Life				6 years
Developed Technology | Davo Technologies LLC
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value			$ 1,950
Valuation Methodology			Relief from royalty-income approach
Discount Rate			13.50%
Estimated Useful Life			5 years
Developed Technology | Track1099 LLC
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value		$ 1,250
Valuation Methodology		Relief from royalty-income approach
Discount Rate		28.00%
Estimated Useful Life		2 years
Developed Technology | CrowdReason LLC and CorrelationAdvisors
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value	$ 3,900
Valuation Methodology	Relief from royalty-income approach
Discount Rate	18.00%
Estimated Useful Life	5 years
Backlog
Business Acquisition [Line Items]
Estimated Useful Life						3 years
Backlog | Minimum
Business Acquisition [Line Items]
Estimated Useful Life					1 year
Backlog | Maximum
Business Acquisition [Line Items]
Estimated Useful Life					7 years
Backlog | CrowdReason LLC and CorrelationAdvisors
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value	$ 450
Valuation Methodology	Multi-period excess earnings-income approach
Discount Rate	15.00%
Estimated Useful Life	1 year
Noncompete Agreements | Minimum
Business Acquisition [Line Items]
Estimated Useful Life					3 years	3 years
Noncompete Agreements | Maximum
Business Acquisition [Line Items]
Estimated Useful Life					5 years	5 years
Noncompete Agreements | Inposia
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value				$ 1,174
Valuation Methodology				With-and-without valuation-income approach
Discount Rate				21.00%
Estimated Useful Life				3 years
Noncompete Agreements | Davo Technologies LLC
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value			$ 564
Valuation Methodology			With-and-without valuation-income approach
Discount Rate			15.50%
Estimated Useful Life			5 years
Noncompete Agreements | Track1099 LLC
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value		$ 1,300
Valuation Methodology		With-and-without valuation-income approach
Discount Rate		30.00%
Estimated Useful Life		5 years
Noncompete Agreements | CrowdReason LLC and CorrelationAdvisors
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value	$ 100
Valuation Methodology	With-and-without valuation-income approach
Discount Rate	20.00%
Estimated Useful Life	5 years
Tradename and Trademarks | Minimum
Business Acquisition [Line Items]
Estimated Useful Life					1 year	1 year
Tradename and Trademarks | Maximum
Business Acquisition [Line Items]
Estimated Useful Life					3 years	4 years
Tradename and Trademarks | Inposia
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value				$ 235
Valuation Methodology				Relief from royalty-income approach
Discount Rate				18.50%
Estimated Useful Life				3 years
Tradename and Trademarks | Davo Technologies LLC
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value			$ 87
Valuation Methodology			Relief from royalty-income approach
Discount Rate			13.50%
Estimated Useful Life			1 year
Tradename and Trademarks | Track1099 LLC
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value		$ 100
Valuation Methodology		Relief from royalty-income approach
Discount Rate		28.00%
Estimated Useful Life		2 years
Tradename and Trademarks | CrowdReason LLC and CorrelationAdvisors
Business Acquisition [Line Items]
Intangible assets Fair Value/ Assigned Value	$ 150
Valuation Methodology	Relief from royalty-income approach
Discount Rate	18.00%
Estimated Useful Life	2 years

Acquisitions of Businesses - _3

Acquisitions of Businesses - Summary of Preliminary Total Consideration (Details) - USD ($) $ in Thousands	Oct. 18, 2021	Oct. 01, 2021	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition [Line Items]
Fair value of earnout provision			$ 0	$ 1,802
Track1099 LLC
Business Acquisition [Line Items]
Cash paid at closing (net of amounts returned)		$ 35,000	35,000
Fair value of earnout provision		8,800	8,820
Fair value of holdbacks		5,000	4,984
Total consideration		$ 48,800	48,804
CrowdReason LLC and CorrelationAdvisors
Business Acquisition [Line Items]
Cash paid at closing (net of amounts returned)	$ 8,300		8,317
Fair value of earnout provision	26,300		26,320
Fair value of holdbacks			1,727
Total consideration	$ 36,400		$ 36,364

Acquisitions of Businesses - _4

Acquisitions of Businesses - Schedule of Pro Forma Financial Information (Unaudited) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition Pro Forma Information [Abstract]
Total revenue	$ 204,530	$ 163,275
Pre-tax loss	$ (32,272)	$ (27,806)

Revenue - Summary of Total Reve

Revenue - Summary of Total Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation Of Revenue [Line Items]
Revenues	$ 204,530	$ 153,601
U.S.
Disaggregation Of Revenue [Line Items]
Revenues	190,476	142,672
Non-U.S.
Disaggregation Of Revenue [Line Items]
Revenues	14,054	10,929
Subscription and Returns, Tax Calculations | U.S.
Disaggregation Of Revenue [Line Items]
Revenues	100,500	76,396
Subscription and Returns, Tax Returns and Compliance Management | U.S.
Disaggregation Of Revenue [Line Items]
Revenues	73,727	52,847
Subscription and Returns, Interest Income on Funds Held for Customers | U.S.
Disaggregation Of Revenue [Line Items]
Revenues	208	141
Subscription and Returns
Disaggregation Of Revenue [Line Items]
Revenues	186,866	139,318
Subscription and Returns | U.S.
Disaggregation Of Revenue [Line Items]
Revenues	174,435	129,384
Professional Services
Disaggregation Of Revenue [Line Items]
Revenues	17,664	14,283
Professional Services | U.S.
Disaggregation Of Revenue [Line Items]
Revenues	$ 16,041	$ 13,288

Revenue - Summary of Activity I

Revenue - Summary of Activity Impacting Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Contract Liabilities [Rollforward]
Balance beginning of period	$ 6,918	$ 10,134
Contract liabilities transferred to deferred revenue	(6,622)	(3,866)
Addition to contract liabilities	601	6,198
Balance end of period	$ 897	$ 12,466

Revenue - Summary of Activity_2

Revenue - Summary of Activity Impacting Deferred Revenue (Details) - Deferred Revenue - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Deferred Revenue Rollforward
Balance beginning of period	$ 282,955	$ 209,690
Revenue recognized	(204,530)	(153,601)
Additional amounts deferred	225,185	169,442
Balance end of period	$ 303,610	$ 225,531

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Deferred commissions amortization expected period	6 years
Deferred contract costs, expected to be amortized within next 12 Months	$ 17,296,000		$ 16,364,000
Impairments of deferred contract costs	0	$ 0
Assets recognized related to costs to fulfill contracts	0	$ 0
Remaining performance obligations	392,900,000
Non-cancellable Amount Not Yet Invoiced
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations	89,300,000
Current Liabilities
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Deferred revenue expected to be recognized within next 12 months	302,500,000
Prepaid Expenses and Other Current Assets
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Deferred contract costs, expected to be amortized within next 12 Months	$ 17,300,000

Revenue - Summary of Activity_3

Revenue - Summary of Activity Impacting Deferred Commissions (Details) - Deferred Commissions - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Capitalized Contract Cost [Line Items]
Balance beginning of period	$ 68,519	$ 50,870
Additional commissions deferred	6,832	5,695
Amortization of deferred commissions	(4,584)	(3,335)
Balance end of period	$ 70,767	$ 53,230

Revenue - Additional Informat_2

Revenue - Additional Information (Details 1) $ in Millions	Mar. 31, 2022USD ($)
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations	$ 392.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations	$ 377.2
Revenue expected to be recognized with remaining amount	12 months
Non-cancellable Amount Not Yet Invoiced
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations	$ 89.3
Non-cancellable Amount Not Yet Invoiced | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations	$ 74.7
Revenue expected to be recognized with remaining amount	12 months

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Gross	$ 166,583	$ 166,130
Accumulated Amortization	(76,808)	(69,312)
Net	89,775	$ 96,818
Backlog
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)		3 years
Gross	4,500	$ 4,500
Accumulated Amortization	(2,249)	(1,816)
Net	$ 2,251	2,684
Backlog | Minimum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	1 year
Backlog | Maximum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	7 years
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Gross	$ 75,162	75,188
Accumulated Amortization	(26,527)	(23,795)
Net	$ 48,635	$ 51,393
Customer Relationships | Minimum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	5 years	3 years
Customer Relationships | Maximum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	10 years	10 years
Developed Technology
Finite Lived Intangible Assets [Line Items]
Gross	$ 73,204	$ 72,723
Accumulated Amortization	(40,516)	(37,333)
Net	$ 32,688	$ 35,390
Developed Technology | Minimum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	1 year	3 years
Developed Technology | Maximum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	6 years	8 years
Noncompete Agreements
Finite Lived Intangible Assets [Line Items]
Gross	$ 6,445	$ 6,452
Accumulated Amortization	(2,064)	(1,725)
Net	$ 4,381	$ 4,727
Noncompete Agreements | Minimum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	3 years	3 years
Noncompete Agreements | Maximum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	5 years	5 years
Tradename and Trademarks
Finite Lived Intangible Assets [Line Items]
Gross	$ 7,272	$ 7,267
Accumulated Amortization	(5,452)	(4,643)
Net	$ 1,820	$ 2,624
Tradename and Trademarks | Minimum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	1 year	1 year
Tradename and Trademarks | Maximum
Finite Lived Intangible Assets [Line Items]
Useful Life (Years)	3 years	4 years

Intangible Assets - Schedule _2

Intangible Assets - Schedule of Intangible Assets (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
IPR&D
Indefinite Lived Intangible Assets By Major Class [Line Items]
Indefinite-lived intangible assets, net	$ 0.4	$ 0.4

Intangible Assets - Additional

Intangible Assets - Additional Information (Details)	1 Months Ended	3 Months Ended
	May 31, 2018USD ($)	Mar. 31, 2022USD ($)Unit	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Finite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, amortization expense		$ 7,100,000	$ 4,400,000
Earnout liability		$ 37,390,000		$ 33,151,000
Number of goodwill impairment reporting units | Unit		3
Goodwill impairment charge		$ 0	$ 0
Goodwill		671,431,000		$ 672,381,000
Brazilian Reporting Unit
Finite Lived Intangible Assets [Line Items]
Goodwill		0
Accrued Expenses
Finite Lived Intangible Assets [Line Items]
Earnout liability		300,000
Tradestream Technologies Inc. and Wise 24 Inc
Finite Lived Intangible Assets [Line Items]
Future revenue recognized period	6 years
Earnout provision		$ 2,600,000
Tradestream Technologies Inc. and Wise 24 Inc | Maximum
Finite Lived Intangible Assets [Line Items]
Total consideration	$ 30,000,000

Intangible Assets - Schedule _3

Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Balance—December 31, 2021	$ 672,381
Cumulative translation adjustments	(950)
Balance—March 31, 2022	$ 671,431

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Total lease cost, net of sublease income	$ 3.8	$ 3.9
Sublease income	0.4	$ 0.4
Increase in operating lease right-of-use assets	$ 1.4

Debt - Additional Information (

Debt - Additional Information (Details) - 2026 Notes - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended
	Aug. 31, 2021	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal amount	$ 977,500	$ 977,500	$ 977,500
Description of interest rate		The 2026 Notes are unsecured obligations and bear interest at a fixed rate of 0.25% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2022.
Fixed interest rate	0.25%
Debt instrument, description of maturity date		The 2026 Notes will mature on August 1, 2026, unless earlier converted, redeemed, or repurchased.
Debt instrument, maturity date	Aug. 1, 2026
Debt issuance costs	$ 17,600
Proceeds from offering, net of debt issuance costs	959,900
Net proceeds from sale of convertible senior notes used to purchase the capped calls	$ 75,300
Capped Call Transactions
Debt Instrument [Line Items]
Initial strike price		$ 238.44
Initial cap price		$ 323.30
Aggregate amount for capped calls		$ 75,300
Shares of common stock covered		4.1

Debt - Summary of Net Carrying

Debt - Summary of Net Carrying Amount of Notes (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Aug. 31, 2021
Debt Instrument [Line Items]
Net carrying amount	$ 962,144	$ 961,259
2026 Notes
Debt Instrument [Line Items]
Principal	977,500	977,500	$ 977,500
Unamortized debt issuance costs	(15,356)	(16,241)
Net carrying amount	$ 962,144	$ 961,259

Debt - Summary of Interest Expe

Debt - Summary of Interest Expense Recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 885	$ 0
2026 Notes
Debt Instrument [Line Items]
Contractual interest expense	611
Amortization of debt issuance costs	885
Total interest expense related to 2026 Notes	$ 1,496

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022Class$ / sharesshares	Dec. 31, 2021$ / sharesshares
Equity [Abstract]
Number of classes of stock | Class	2
Capital stock, authorized shares	620,000,000
Common stock, shares authorized	600,000,000	600,000,000
Common stock, par value | $ / shares	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, par value | $ / shares	$ 0.0001	$ 0.0001

Shareholders' Equity - Summary

Shareholders' Equity - Summary of Changes of Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Class Of Stock [Line Items]
Beginning balance	$ 1,026,454	$ 1,080,160
Exercise of stock options	$ 2,281	5,529
Exercise of stock options, Shares	107,623
Stock-based compensation cost	$ 33,371	19,127
Shares issued under employee stock purchase plan	8,006	7,088
Gain (Loss) on translation adjustment	(1,347)	(390)
Net loss	(32,557)	(30,068)
Ending balance	1,036,208	1,081,446
Common Stock
Class Of Stock [Line Items]
Beginning balance	$ 9	$ 9
Beginning balance, Shares	87,086,665	85,057,727
Exercise of stock options, Shares	107,623	296,226
Vesting of restricted stock units and performance share units	466,497	346,008
Shares issued under employee stock purchase plan, Shares	85,926	60,064
Ending balance	$ 9	$ 9
Ending balance, Shares	87,785,002	85,760,025
Common Stock | Performance Share Units
Class Of Stock [Line Items]
Vesting of restricted stock units and performance share units	38,291
Additional Paid-In Capital
Class Of Stock [Line Items]
Beginning balance	$ 1,732,742	$ 1,648,741
Exercise of stock options	2,281	5,529
Stock-based compensation cost	33,371	19,127
Shares issued under employee stock purchase plan	8,006	7,088
Ending balance	1,776,400	1,680,485
Accumulated Other Comprehensive Income (Loss)
Class Of Stock [Line Items]
Beginning balance	(3,428)	(1,339)
Gain (Loss) on translation adjustment	(1,347)	(390)
Ending balance	(4,775)	(1,729)
Accumulated Deficit
Class Of Stock [Line Items]
Beginning balance	(702,869)	(567,251)
Net loss	(32,557)	(30,068)
Ending balance	$ (735,426)	$ (597,319)

Equity Incentive Plans - Additi

Equity Incentive Plans - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares subject to outstanding awards	2,166,875		2,278,789
Stock-based compensation cost capitalized	$ 0.6	$ 0.2
Total intrinsic value of options exercised	7.7	$ 41.9
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation expense related to stock options	$ 8.9
Unrecognized compensation expense expected to be recognized over weighted average period	1 year 6 months
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense expected to be recognized over weighted average period	2 years 9 months 18 days
Total unrecognized compensation expense expected to be recognized	$ 374
Restricted Stock Units (RSUs) | Employees | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting period	3 years
Restricted Stock Units (RSUs) | Employees | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting period	4 years
Restricted Stock Units (RSUs) | Non Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting period	1 year
Performance Share Units (PSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense expected to be recognized over weighted average period	2 years
Stock options vesting period	3 years
Total unrecognized compensation expense expected to be recognized	$ 53.3
Vesting term, description	Each PSU grant will vest in annual tranches over a three-year service period. Total PSUs earned for grants made in 2022 and 2021 may vary between 0% and 250% of the PSUs granted based on the attainment of company-specific performance targets during the related three-year period and continued service.
Service period	3 years
Performance Share Units (PSUs) | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage	0.00%
Performance Share Units (PSUs) | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage	250.00%
2018 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares subject to outstanding awards	4,500,890
Shares available for future issuance	14,372,738
2006 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares subject to outstanding awards	1,093,901
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, shares purchased	85,926
2018 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation expense related to stock options	$ 1.7

Equity Incentive Plans - Summar

Equity Incentive Plans - Summary of Stock-Based Compensation Expense Related to Equity Incentive Rewards (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation cost	$ 33,371	$ 19,127
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation cost	2,161	3,223
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation cost	22,128	11,769
Performance Share Units (PSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation cost	7,813	2,832
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation cost	$ 1,269	$ 1,303

Equity Incentive Plans - Summ_2

Equity Incentive Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Shares
Options outstanding beginning balance	2,278,789
Options exercised	(107,623)
Options cancelled or expired	(4,291)
Options outstanding ending balance	2,166,875	2,278,789
Options exercisable	1,778,867
Weighted Average Exercise Price
Options outstanding beginning balance	$ 33.52
Options exercised	21.20
Options cancelled or expired	111.83
Options outstanding ending balance	33.98	$ 33.52
Options exercisable	$ 28.90
Weighted Average Remaining Contractual Life (in Years)
Options outstanding	6 years 29 days	6 years 3 months 18 days
Options exercisable	5 years 9 months 21 days
Aggregate Intrinsic Value
Options outstanding	$ 141,996	$ 217,824
Options exercisable	$ 125,598

Equity Incentive Plans - Summ_3

Equity Incentive Plans - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs/PSUs outstanding as of January 1, 2022, Shares | shares	2,861,963
RSUs/PSUs granted, Shares | shares	1,903,805
RSUs/PSUs vested, Shares | shares	(466,497)
RSUs/PSUs cancelled, Shares | shares	(98,343)
RSUs/PSUs outstanding as of March 31, 2021, Shares | shares	4,200,928
RSUs/PSUs outstanding as of January 1, 2022, Weighted average grant date fair value per share | $ / shares	$ 99.41
RSUs/PSUs granted, Weighted average grant date fair value per share | $ / shares	97.15
RSUs/PSUs vested, Weighted average grant date fair value per share | $ / shares	80.86
RSUs/PSUs cancelled, Weighted average grant date fair value per share | $ / shares	94.81
RSUs/PSUs outstanding as of March 31, 2022, Weighted average grant date fair value per share | $ / shares	$ 100.56

Equity Incentive Plans - Summ_4

Equity Incentive Plans - Summary of PSU Activity (Details) - Performance Share Units (PSUs)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs/PSUs outstanding as of January 1, 2022, Shares | shares	114,890
RSUs/PSUs granted, Shares | shares	223,363
RSUs/PSUs vested, Shares | shares	(38,291)
RSUs/PSUs outstanding as of March 31, 2021, Shares | shares	299,962
RSUs/PSUs outstanding as of January 1, 2022, Weighted average grant date fair value per share | $ / shares	$ 147.26
RSUs/PSUs granted, Weighted average grant date fair value per share | $ / shares	98.90
RSUs/PSUs vested, Weighted average grant date fair value per share | $ / shares	147.26
RSUs/PSUs outstanding as of March 31, 2022, Weighted average grant date fair value per share | $ / shares	$ 111.25

Equity Incentive Plans - Summ_5

Equity Incentive Plans - Summary of Fair Value of ESPP Purchase Rights Was Estimated Using Black-Scholes Option-pricing Model Assumptions (Details) - 2018 Employee Stock Purchase Plan - $ / shares	3 Months Ended
	Mar. 31, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair market value of common stock	$ 111	$ 152.35
Volatility	33.00%	34.00%
Expected term	6 months	6 months
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	0.48%	0.08%

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable to Common Shareholders - Schedule of Computation of Basic and Diluted Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net loss attributable to common shareholders	$ (32,557)	$ (30,068)
Denominator:
Weighted-average common shares outstanding-basic	87,463	85,436
Dilutive effect of share equivalents resulting from stock options, RSUs, PSUs, ESPP shares, and convertible senior notes (if converted)	0	0
Weighted-average common shares outstanding-diluted	87,463	85,436
Net loss per common share, basic and diluted	$ (0.37)	$ (0.35)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Shareholders - Schedule of Potential Shares Not Included in the Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	9,441	5,736
Options To Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	2,236	3,396
Unvested RSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	2,853	2,258
Unvested PSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	243	75
ESPP Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	9	7
Convertible Senior Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	4,100	0

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Event - USD ($)	Aug. 08, 2022	May 05, 2022
Subsequent Event [Line Items]
Consideration in cash		$ 12,100,000
TTR
Subsequent Event [Line Items]
General indemnification holdback to the sellers	$ 37,700
Business Licenses
Subsequent Event [Line Items]
General indemnification holdback to the sellers		$ 11,100