Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33508 | |
Entity Registrant Name | Limelight Networks, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1677033 | |
Entity Central Index Key | 0001391127 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Address, Address Line One | 1465 North Scottsdale Road | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85257 | |
City Area Code | 602 | |
Local Phone Number | 850-5000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | LLNW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 133,811,874 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 39,585 | $ 46,795 |
Marketable securities | 36,201 | 76,928 |
Accounts receivable, net | 46,179 | 31,675 |
Income taxes receivable | 62 | 68 |
Prepaid expenses and other current assets | 13,396 | 15,588 |
Total current assets | 135,423 | 171,054 |
Property and equipment, net | 36,392 | 46,418 |
Operating lease right of use assets | 7,683 | 10,150 |
Marketable securities, less current portion | 40 | 40 |
Deferred income taxes | 1,693 | 1,530 |
Goodwill | 105,221 | 77,753 |
Intangible assets, net | 23,680 | 0 |
Other assets | 5,972 | 7,233 |
Total assets | 316,104 | 314,178 |
Current liabilities: | ||
Accounts payable | 13,768 | 4,587 |
Deferred revenue | 7,965 | 933 |
Operating lease liability obligations | 1,966 | 2,465 |
Income taxes payable | 443 | 253 |
Other current liabilities | 17,950 | 17,560 |
Total current liabilities | 42,092 | 25,798 |
Convertible senior notes, net | 121,576 | 100,945 |
Operating lease liability obligations, less current portion | 10,045 | 11,265 |
Deferred income taxes | 308 | 279 |
Deferred revenue, less current portion | 307 | 220 |
Other long-term liabilities | 453 | 479 |
Total liabilities | 174,781 | 138,986 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 300,000 shares authorized; 133,812 and 123,653 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 134 | 124 |
Additional paid-in capital | 571,268 | 556,512 |
Accumulated other comprehensive loss | (8,491) | (7,511) |
Accumulated deficit | (421,588) | (373,933) |
Total stockholders’ equity | 141,323 | 175,192 |
Total liabilities and stockholders’ equity | $ 316,104 | $ 314,178 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 133,812,000 | 123,653,000 |
Common stock, shares outstanding (in shares) | 133,812,000 | 123,653,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Income Statement [Abstract] | |||||
Revenue | $ 55,202 | $ 59,243 | $ 154,745 | $ 174,801 | |
Cost of revenue: | |||||
Cost of services | [1] | 33,687 | 31,905 | 99,708 | 92,406 |
Depreciation — network | 5,685 | 5,602 | 17,293 | 16,112 | |
Total cost of revenue | 39,372 | 37,507 | 117,001 | 108,518 | |
Gross profit | 15,830 | 21,736 | 37,744 | 66,283 | |
Operating expenses: | |||||
General and administrative | 10,532 | 7,751 | 30,944 | 23,820 | |
Sales and marketing | 5,987 | 10,456 | 21,619 | 33,279 | |
Research and development | 5,205 | 5,425 | 16,520 | 16,614 | |
Depreciation and amortization | 730 | 384 | 1,818 | 1,049 | |
Restructuring charges | 1,770 | 0 | 10,798 | 0 | |
Total operating expenses | 24,224 | 24,016 | 81,699 | 74,762 | |
Operating loss | (8,394) | (2,280) | (43,955) | (8,479) | |
Other income (expense): | |||||
Interest expense | (1,308) | (1,674) | (3,899) | (1,756) | |
Interest income | 17 | 10 | 104 | 40 | |
Other, net | (209) | 25 | (864) | (396) | |
Total other expense | (1,500) | (1,639) | (4,659) | (2,112) | |
Loss before income taxes | (9,894) | (3,919) | (48,614) | (10,591) | |
Income tax expense | 211 | 66 | 718 | 377 | |
Net loss | $ (10,105) | $ (3,985) | $ (49,332) | $ (10,968) | |
Net loss per share: | |||||
Basic (in dollars per share) | $ (0.08) | $ (0.03) | $ (0.39) | $ (0.09) | |
Diluted (in dollars per share) | $ (0.08) | $ (0.03) | $ (0.39) | $ (0.09) | |
Weighted average shares used in per share calculation: | |||||
Basic (shares) | 126,791 | 122,363 | 125,710 | 120,519 | |
Diluted (shares) | 126,791 | 122,363 | 125,710 | 120,519 | |
[1] | Cost of services excludes amortization related to certain intangibles, including technology, customer relationships, and trade names, which are included in depreciation and amortization |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (10,105) | $ (3,985) | $ (49,332) | $ (10,968) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on investments | 3 | (80) | 32 | (80) |
Foreign currency translation gain (loss) | (529) | 732 | (1,012) | (89) |
Other comprehensive income (loss) | (526) | 652 | (980) | (169) |
Comprehensive loss | $ (10,631) | $ (3,333) | $ (50,312) | $ (11,137) |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative effect of adoption of new accounting pronouncement | Common Stock | Additional Paid-In Capital | Additional Paid-In CapitalCumulative effect of adoption of new accounting pronouncement | Accumulated Other Comprehensive Loss | Accumulated Deficit | Accumulated DeficitCumulative effect of adoption of new accounting pronouncement |
Beginning balance, shares at Dec. 31, 2019 | 118,368 | |||||||
Beginning balance at Dec. 31, 2019 | $ 166,537 | $ 118 | $ 530,285 | $ (9,210) | $ (354,656) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (10,968) | (10,968) | ||||||
Change in unrealized gain on available-for-sale investments, net of taxes | (80) | (80) | ||||||
Foreign currency translation adjustment, net of taxes | (89) | (89) | ||||||
Exercise of common stock options, shares | 2,672 | |||||||
Exercise of common stock options | 7,610 | $ 3 | 7,607 | |||||
Vesting of restricted stock units, shares | 2,233 | |||||||
Vesting of restricted stock units | 7 | $ 2 | 5 | |||||
Restricted stock units surrendered in lieu of withholding taxes, shares | (749) | |||||||
Restricted stock units surrendered in lieu of withholding taxes | (3,986) | (3,986) | ||||||
Issuance of common stock under employee stock purchase plan, shares | 300 | |||||||
Issuance of common stock under employee stock purchase plan | 1,074 | 1,074 | ||||||
Share-based compensation | 12,240 | 12,240 | ||||||
Equity component of convertible senior notes, net | 21,747 | 21,747 | ||||||
Purchase of capped calls related to issuance of convertible senior notes | (16,413) | (16,413) | ||||||
Ending balance, shares at Sep. 30, 2020 | 122,824 | |||||||
Ending balance at Sep. 30, 2020 | $ 177,679 | $ 123 | 552,559 | (9,379) | (365,624) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting standards update | Accounting Standards Update 2020-06 [Member] | |||||||
Beginning balance, shares at Dec. 31, 2019 | 118,368 | |||||||
Beginning balance at Dec. 31, 2019 | $ 166,537 | $ 118 | 530,285 | (9,210) | (354,656) | |||
Ending balance, shares at Dec. 31, 2020 | 123,653 | 123,653 | ||||||
Ending balance at Dec. 31, 2020 | $ 175,192 | $ (20,056) | $ 124 | 556,512 | $ (21,733) | (7,511) | (373,933) | $ 1,677 |
Beginning balance, shares at Jun. 30, 2020 | 121,692 | |||||||
Beginning balance at Jun. 30, 2020 | 169,815 | $ 122 | 541,363 | (10,031) | (361,639) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (3,985) | (3,985) | ||||||
Change in unrealized gain on available-for-sale investments, net of taxes | (80) | (80) | ||||||
Foreign currency translation adjustment, net of taxes | 732 | 732 | ||||||
Exercise of common stock options, shares | 812 | |||||||
Exercise of common stock options | 2,599 | $ 1 | 2,598 | |||||
Vesting of restricted stock units, shares | 488 | |||||||
Restricted stock units surrendered in lieu of withholding taxes, shares | (168) | |||||||
Restricted stock units surrendered in lieu of withholding taxes | (1,041) | (1,041) | ||||||
Share-based compensation | 4,305 | 4,305 | ||||||
Equity component of convertible senior notes, net | 21,747 | 21,747 | ||||||
Purchase of capped calls related to issuance of convertible senior notes | (16,413) | (16,413) | ||||||
Ending balance, shares at Sep. 30, 2020 | 122,824 | |||||||
Ending balance at Sep. 30, 2020 | $ 177,679 | $ 123 | 552,559 | (9,379) | (365,624) | |||
Beginning balance, shares at Dec. 31, 2020 | 123,653 | 123,653 | ||||||
Beginning balance at Dec. 31, 2020 | $ 175,192 | $ (20,056) | $ 124 | 556,512 | $ (21,733) | (7,511) | (373,933) | $ 1,677 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (49,332) | (49,332) | ||||||
Change in unrealized gain on available-for-sale investments, net of taxes | 32 | 32 | ||||||
Foreign currency translation adjustment, net of taxes | (1,012) | (1,012) | ||||||
Exercise of common stock options, shares | 1,935 | |||||||
Exercise of common stock options | 4,547 | $ 2 | 4,545 | |||||
Vesting of restricted stock units, shares | 1,401 | |||||||
Vesting of restricted stock units | 0 | $ 1 | (1) | |||||
Restricted stock units surrendered in lieu of withholding taxes, shares | (410) | |||||||
Restricted stock units surrendered in lieu of withholding taxes | (1,314) | (1,314) | ||||||
Issuance of common stock under employee stock purchase plan, shares | 355 | |||||||
Issuance of common stock under employee stock purchase plan | 913 | 913 | ||||||
Share-based compensation | 13,920 | 13,920 | ||||||
Issuance of common stock for business acquisition, shares | 6,878 | |||||||
Issuance of common stock for business acquisition | $ 18,433 | $ 7 | 18,426 | |||||
Ending balance, shares at Sep. 30, 2021 | 133,812 | 133,812 | ||||||
Ending balance at Sep. 30, 2021 | $ 141,323 | $ 134 | 571,268 | (8,491) | (421,588) | |||
Beginning balance, shares at Jun. 30, 2021 | 126,705 | |||||||
Beginning balance at Jun. 30, 2021 | 130,884 | $ 127 | 550,205 | (7,965) | (411,483) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (10,105) | (10,105) | ||||||
Change in unrealized gain on available-for-sale investments, net of taxes | 3 | 3 | ||||||
Foreign currency translation adjustment, net of taxes | (529) | (529) | ||||||
Vesting of restricted stock units, shares | 306 | |||||||
Restricted stock units surrendered in lieu of withholding taxes, shares | (77) | |||||||
Restricted stock units surrendered in lieu of withholding taxes | (217) | (217) | ||||||
Share-based compensation | 2,854 | 2,854 | ||||||
Issuance of common stock for business acquisition, shares | 6,878 | |||||||
Issuance of common stock for business acquisition | $ 18,433 | $ 7 | 18,426 | |||||
Ending balance, shares at Sep. 30, 2021 | 133,812 | 133,812 | ||||||
Ending balance at Sep. 30, 2021 | $ 141,323 | $ 134 | $ 571,268 | $ (8,491) | $ (421,588) |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Operating activities | |||||
Net loss | $ (10,105) | $ (3,985) | $ (49,332) | $ (10,968) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 19,111 | 17,161 | |||
Share-based compensation | 16,477 | 12,238 | |||
Foreign currency remeasurement gain | (66) | (113) | |||
Deferred income taxes | (198) | (80) | |||
Gain on sale of property and equipment | (219) | (1) | |||
Accounts receivable charges | 1,047 | 476 | $ 801 | ||
Amortization of premium on marketable securities | 1,597 | 87 | |||
Noncash interest expense | 604 | 868 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (13,037) | (8,221) | |||
Prepaid expenses and other current assets | 1,678 | (2,679) | |||
Income taxes receivable | 4 | 3 | |||
Other assets | 2,017 | 2,504 | |||
Accounts payable and other current liabilities | 8,163 | 8,159 | |||
Deferred revenue | 4,640 | (109) | |||
Income taxes payable | 210 | (15) | |||
Other long term liabilities | (26) | 265 | |||
Net cash (used in) provided by operating activities | (7,330) | 19,575 | |||
Investing activities | |||||
Purchases of marketable securities | (44,838) | (52,690) | |||
Sale and maturities of marketable securities | 84,000 | 2,900 | |||
Purchases of property and equipment | (11,909) | (22,128) | |||
Proceeds from sale of property and equipment | 219 | 1 | |||
Acquisition of business, net of cash acquired | (30,968) | 0 | |||
Net cash used in investing activities | (3,496) | (71,917) | |||
Financing activities | |||||
Proceeds from issuance of debt, net | 0 | 121,600 | |||
Purchase of capped calls | 0 | (16,413) | |||
Payment of debt issuance costs | (30) | (784) | |||
Payments of employee tax withholdings related to restricted stock vesting | (1,315) | (3,987) | |||
Proceeds from employee stock plans | 5,460 | 8,691 | |||
Net cash provided by financing activities | 4,115 | 109,107 | |||
Effect of exchange rate changes on cash and cash equivalents | (499) | 69 | |||
Net (decrease) increase in cash and cash equivalents | (7,210) | 56,834 | |||
Cash and cash equivalents, beginning of period | 46,795 | 18,335 | 18,335 | ||
Cash and cash equivalents, end of period | $ 39,585 | $ 75,169 | 39,585 | 75,169 | $ 46,795 |
Supplemental disclosure of cash flow information | |||||
Cash paid during the period for interest | 4,460 | 97 | |||
Cash paid during the period for income taxes, net of refunds | 714 | 452 | |||
Common stock issued in connection with acquisition of business | $ 18,433 | $ 0 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Limelight Networks, Inc., is an industry-leader in content delivery services and AppOps, our coordinated complete solution to deliver instant, secure website applications at the edge that provides powerful tools and a client-first approach to optimize and deliver digital experiences at the edge. We are a trusted partner to the world’s biggest brands and serve their global customers with experiences such as livestream sporting events, global movie launches, video games, or file downloads for new phone apps. We offer one of the largest, best-optimized private networks coupled with a global team of industry experts to provide edge services that are fast, secure, and reliable. We were incorporated in Delaware in 2003, and have operated in the Phoenix metropolitan area since 2001 and elsewhere throughout the United States since 2003. We began international operations in 2004. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities Exchange Commission (SEC). They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2020. All information is presented in thousands, except per share amounts and where specifically noted. The consolidated financial statements include accounts of Limelight and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation. Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or for any future periods. Recent Accounting Standards Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12 to simplifying the accounting for income taxes. ASU 2019-12 is intended to simplify various aspects related to accounting for income taxes, eliminates certain exceptions to the general principles in the Accounting Standards Codification (ASC) Topic 740 related to intra-period tax allocation, simplifies when companies recognize deferred taxes in an interim period, and clarifies certain aspects of the current guidance to promote consistent application. We adopted this guidance effective January 1, 2021. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for convertible instruments. ASU 2020-06 eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. ASU 2020-06 also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. We early adopted this guidance on January 1, 2021, on a modified retrospective basis. As a result of the adoption of ASU 2020-06, our total remaining interest expense over the contractual terms of our convertible debt will be approximately $20,823 less than under the previous accounting standards. The adoption resulted in a $21,733 decrease in additional paid in capital from the derecognition of the bifurcated equity component, $20,255 increase in debt from the derecognition of the discount associated with the bifurcated equity component and $1,677 decrease to the opening balance of accumulated deficit, representing the cumulative interest expense recognized related to the amortization of the bifurcated conversion option. We wrote-off the related deferred tax liabilities with a corresponding adjustment to the valuation allowance, resulting in no net tax impact to the cumulative adjustment to retained earnings. Recently Issued Accounting Standards In October 2021, the FASB issued ASU 2021-08, which provides amendments to improve, simplify, and provide consistency for recognition and measurement of acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments require that an acquirer recognize and measure such contract assets and contract liabilities under Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. The amendments also allow for election of certain practical expedients, which are applied on an acquisition-by-acquisition basis. The new accounting amendments are effective for us beginning in fiscal 2023 with prospective application. Early adoption is permitted, including in any interim period, and if elected, the amendments are applied retrospectively for any acquisitions that occurred in the fiscal year of interim adoption. We expect to early adopt this ASU and are evaluating the impacts of the amendments on our condensed consolidated financial statements. Significant Accounting Policies There have been no changes in the significant accounting policies from those that were disclosed in our Annual Report, except for restructuring charge, convertible senior notes, business combinations, finite intangible assets and share-based compensation as described below: Restructuring Charges We account for restructuring costs under ASC 420, Exit or Disposal Obligations. Restructuring costs are recognized when the liability is incurred. A restructuring liability related to employee terminations is recorded when a one-time benefit arrangement is communicated to an employee who is involuntarily terminated as part of a reorganization and the amount of the termination benefit is known, provided that the employee is not required to render future services in order to receive the termination benefit. If fixed assets, or other assets are to be disposed of as a result of our restructuring efforts, the assets are written off when we commit to dispose of them, and they are no longer in use. If applicable, depreciation is accelerated on fixed assets for the period of time the asset continues to be used until the asset ceases to be used. Other restructuring costs are generally recorded as the cost is incurred or the service is provided. Convertible Senior Notes In July 2020, we issued $125,000 aggregate principal amount of 3.50% convertible senior notes. Effective January 1, 2021, we early adopted ASU 2020-06. The conversion option that was previously accounted for under the cash conversion model or beneficial conversion feature model was recombined into a single instrument that is classified as a liability for convertible debt or equity for equity-classified preferred stock. Business Combinations In accounting for acquisitions through which a set of assets and activities are transferred to us, we perform an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If the initial test does not result in substantially all of the fair value concentrated in a single or group of similar assets, we then perform a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that, together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test indicates that the acquired assets and activities constitute a business, we account for the transaction as a business combination. For our business combinations, we allocate the purchase consideration of the acquisition, which includes the estimated acquisition date fair value of contingent consideration (if applicable), to the tangible assets, liabilities and identifiable intangible assets acquired based on each of the estimated fair values at the acquisition date. The excess of the purchase consideration over the fair values is recorded as goodwill. Determining the fair value of such items requires judgment, including estimating future cash flows or the cost to recreate an acquired asset. Acquisition-related expenses are expensed as incurred, except for those costs incurred to issue debt or equity securities (if applicable), and are included in general and administrative expense in our consolidated statements of operations. During and up to the one-year period beginning with the acquisition date, we may record certain purchase accounting adjustments related to the fair value of assets acquired and liabilities assumed against goodwill. After the final determination of the fair value of assets acquired or liabilities assumed, any subsequent adjustments are recorded to our consolidated statements of operations. The fair value of contingent consideration liabilities assumed from an acquisition are remeasured each reporting period after the acquisition date and the changes in the estimated fair value, if any, are recorded within operating expenses in our consolidated statement of operations for such period. In accounting for income taxes in a business combination, changes in the deferred tax asset valuations allowance and income tax uncertainties after the acquisition date will be recognized through income tax expense in our consolidated statement of operations each reporting period. The results of operations of the acquired business are included in our consolidated statement of operations since the date of acquisition. Finite Intangible Assets Finite-lived intangible assets are amortized over the following estimated useful lives: Trade name 3.0 years Customer relationships 5.0 years Technology 7.0 years Our finite-lived intangible assets are primarily amortized on a straight-line basis. We annually evaluate the estimated remaining useful lives of our intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Long-lived and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. An impairment loss is recognized if the sum of the expected long-term undiscounted cash flows the asset is expected to generate is less than its carrying amount. Any write-downs are treated as permanent reductions in the carrying amount of the respective asset. Our analysis did not indicate impairment during any of the periods presented. Share-Based Compensation We account for our share-based compensation awards using the fair-value method. The grant date fair value was determined using the Black-Scholes-Merton pricing model. The Black-Scholes-Merton valuation calculation requires us to make key assumptions such as future stock price volatility, expected terms, risk-free rates, and dividend yield. Our expected volatility is derived from our volatility rate as a publicly traded company. The expected term is based on our historical experience. The risk-free interest factor is based on the United States Treasury yield curve in effect at the time of the grant for zero coupon United States Treasury notes with maturities of approximately equal to each grant’s expected term. We have never paid cash dividends and do not currently intend to pay cash dividends, and therefore, we have assumed a 0% dividend yield. We apply the straight-line attribution method to recognize compensation costs associated with awards that are not subject to graded vesting. For awards subject to graded vesting, we recognize expense separately for each vesting tranche. We regularly estimate when and if performance-based award will be earned and record expense over the estimated service period only for awards considered probable of being earned. Any previously recognized expense is reversed in the period in which an award is determined to no longer be probable of being earned. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our clients, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For contracts that contain minimum commitments over the contractual term, we estimate an amount of variable consideration by using the expected value method. We include estimates of variable consideration in revenue only when we have a high degree of confidence that revenue will not be reversed in a subsequent reporting period. We believe that the expected value method is the most appropriate estimate of the amount of variable consideration. These clients have entered into contracts with contract terms generally from one to four years. As of September 30, 2021, we have approximately $4,051 of remaining unsatisfied performance obligations. We recognized revenue of approximately $2,418 and $1,911, respectively, during the three months ended September 30, 2021 and 2020, related to these types of contracts with our clients. During the nine months ended September 30, 2021 and 2020, we recognized approximately $6,774 and $6,008, respectively. We expect to recognize approximately 47% of the remaining unsatisfied performance obligations in 2021, approximately 51% in 2022, and approximately 2% in 2023. |
Business Acquisition
Business Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition | Business Acquisition In September 2021, we closed the acquisition of 100% of the equity interests of Moov, a California corporation doing business as Layer0, a sub-scale SaaS based application acceleration and developer support platform, for total purchase consideration of $52,487. The total purchase consideration included $34,054 in cash, and 6,878 shares of our common stock valued at $18,433 at the acquisition date. In connection with this transaction, a shareholder of Moov entered into an employment agreement with us. As part of the employment agreement, the employee will receive contingent consideration of approximately $4,300 to be paid out ratably over a three year period on each anniversary of the acquisition closing date if the employee remains employed by us. As the employee is required to render services to us following the acquisition, this contingent consideration is not included in the purchase consideration. The acquisition was accounted for under the acquisition method of accounting and the operating results of Moov have been included in our consolidated financial statements as of the closing date of the acquisition. Under the acquisition method of accounting, the aggregate amount of consideration paid by us was allocated to Moov net tangible assets and intangible assets based on their estimated fair values as of the acquisition closing date. The excess of the purchase price over the value of the net tangible assets and intangible assets was recorded to goodwill. The factors contributing to the recognition of goodwill were based upon our conclusion that there are strategic and synergistic benefits that are expected to be realized from the acquisition. Goodwill, which is non-deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the technology, customer relationships and trade name of the acquired business and expected synergies at the time of the acquisition. We retained an independent third-party valuation firm to assist management in our valuation of the acquired assets and liabilities. The following table presents the allocation of the purchase price for Moov: Consideration: Cash $ 34,054 Common stock 18,433 Total consideration $ 52,487 The fair value of our common stock consideration of 6,878 shares, is based on the closing price of our common stock of $2.68 per share on the acquisition closing date. The following table summarizes the allocation of the purchase consideration to the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired: Cash $ 3,130 Accounts receivable 2,515 Prepaid expenses and other current assets 273 Goodwill 27,479 Intangible assets Trade name 91 Customer relationships 7,090 Technology 16,820 Total assets acquired 57,398 Accounts payable and accrued liabilities 2,432 Deferred revenue 2,479 Total liabilities 4,911 Total purchase consideration $ 52,487 Certain amounts noted above are preliminary and subject to change during the respective measurement period (up to one year from the acquisition date) as we obtain additional information for the preliminary fair value estimates of the assets acquired and liabilities assumed. The primary preliminary estimates that are not yet finalized relate to certain assets and liabilities assumed, identifiable intangible assets, income and non-income based taxes and residual goodwill. The fair value of the acquired intangible assets were determined as follows, trade name - income approach using the relief from royalty methodology, customer relationships - utilizing the cost approach methodology, and technology - excess earnings methodology under the income approach. The weighted-average amortization period of the acquired intangible assets was 6.4 years at acquisition. During the three and nine months ended September 30, 2021, Moov represented $817 of our total revenue and $450 of our consolidated net loss. For the period January 1, 2021 to the acquisition closing date, Moov's unaudited revenue was approximately $8,969, and their net loss was approximately $628. For the year ended December 31, 2020, Moov's unaudited revenue was approximately $13,400, and their net loss was approximately $600. Transaction costs incurred by us in connection with the Moov acquisition were $1,263 and $1,441 for the three and nine months ended September 30, 2021, respectively, and were recorded within general and administrative expenses in our consolidated statements of operations. |
Investments in Marketable Secur
Investments in Marketable Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Marketable Securities | Investments in Marketable Securities The following is a summary of marketable securities (designated as available-for-sale) at September 30, 2021: Amortized Gross Gross Estimated Certificate of deposit $ 1,915 $ — $ — $ 1,915 Corporate notes and bonds 14,780 7 16 14,771 Municipal securities 19,562 — 7 19,555 Total marketable securities $ 36,257 $ 7 $ 23 $ 36,241 The amortized cost and estimated fair value of marketable securities at September 30, 2021, by maturity are shown below: Amortized Gross Gross Estimated Available-for-sale securities: Due in one year or less $ 36,217 $ 7 $ 23 $ 36,201 Due after one year and through five years 40 — — 40 Total marketable securities $ 36,257 $ 7 $ 23 $ 36,241 The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2020: Amortized Gross Gross Estimated Certificate of deposit $ 551 $ — $ — $ 551 Corporate notes and bonds 45,426 — 41 45,385 Municipal securities 31,039 1 8 31,032 Total marketable securities $ 77,016 $ 1 $ 49 $ 76,968 The amortized cost and estimated fair value of marketable securities at December 31, 2020, by maturity are shown below: Amortized Gross Gross Estimated Available-for-sale securities: Due in one year or less $ 76,976 $ 1 $ 49 $ 76,928 Due after one year and through five years 40 — — 40 Total marketable securities $ 77,016 $ 1 $ 49 $ 76,968 |
Accounts Receivable, net
Accounts Receivable, net | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net include: September 30, December 31, 2021 2020 Accounts receivable $ 48,007 $ 32,857 Less: credit allowance (150) (170) Less: allowance for doubtful accounts (1,678) (1,012) Total accounts receivable, net $ 46,179 $ 31,675 The following is a roll-forward of the allowances for doubtful accounts related to trade accounts receivable for the nine months ended September 30, 2021 and the twelve months ended December 31, 2020: Nine Months Ended Twelve Months Ended September 30, 2021 December 31, 2020 Beginning of period $ 1,012 $ 973 Provision for credit losses 1,047 801 Write-offs (381) (762) End of period $ 1,678 $ 1,012 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include: September 30, December 31, 2021 2020 Prepaid bandwidth and backbone 1,530 3,519 VAT receivable 4,454 4,392 Prepaid expenses and insurance 3,011 2,906 Vendor deposits and other 4,401 4,771 Total prepaid expenses and other current assets $ 13,396 $ 15,588 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net include: September 30, December 31, 2021 2020 Network equipment $ 125,665 $ 136,788 Computer equipment and software 7,014 7,358 Furniture and fixtures 1,412 1,703 Leasehold improvements 7,158 7,470 Other equipment 18 21 Total property and equipment 141,267 153,340 Less: accumulated depreciation (104,875) (106,922) Total property and equipment, net $ 36,392 $ 46,418 Cost of revenue depreciation expense related to property and equipment was approximately $5,685 and $5,602, respectively, for the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020, respectively, cost of revenue depreciation expense related to property and equipment was approximately $17,293 and $16,112, respectively. Operating expense depreciation and amortization expense related to property and equipment was approximately $409 and $384, respectively, for the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020, respectively, operating expense depreciation expense related to property and equipment was approximately $1,497 and $1,049, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We have recorded goodwill as a result of past and current business acquisitions. We review goodwill for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may exceed their fair value. We concluded that we have one reporting unit and assigned the entire balance of goodwill to this reporting unit as of September 30, 2021. The changes in the carrying amount of goodwill for the nine months ended September 30, 2021, were as follows: Balance, December 31, 2020 $ 77,753 Foreign currency translation adjustment (332) Balance, March 31, 2021 $ 77,421 Foreign currency translation adjustment 221 Balance, June 30, 2021 $ 77,642 Acquisition of business 27,479 Foreign currency translation adjustment 100 Balance, September 30, 2021 $ 105,221 Intangible assets consist of the following as of September 30, 2021: Gross Accumulated Net Trade name $ 91 $ (3) $ 88 Customer relationships 7,090 (118) 6,972 Technology 16,820 (200) 16,620 Total other intangible assets $ 24,001 $ (321) $ 23,680 Aggregate expense related to amortization of other intangible assets for the three and nine months ended September 30, 2021,was approximately $321. There were no impairment charges incurred in the periods presented. As of September 30, 2021, the weighted-average remaining useful lives of our acquired intangible assets were 3.0 years for trade name, 5.0 years for customer relationships, and 7.0 years for technology, and 6.4 years in total, for all acquired intangible assets. As of September 30, 2021, future amortization expense related to our other intangible assets is expected to be recognized as follows: Remainder of 2021 $ 963 2022 3,851 2023 3,851 2024 3,841 2025 3,821 Thereafter 7,353 Total $ 23,680 |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities include: September 30, December 31, 2021 2020 Accrued compensation and benefits $ 6,789 $ 5,964 Accrued cost of revenue 2,649 5,036 Accrued interest payable 729 1,894 Restructuring charges 712 — Accrued legal fees 1,133 61 Other accrued expenses 5,938 4,605 Total other current liabilities $ 17,950 $ 17,560 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Senior Notes - Due 2025 On July 27, 2020, we issued $125,000 aggregate principal amount of 3.50% Convertible Senior Notes due 2025 (the Notes), including the initial purchasers’ exercise in full of their option to purchase an additional $15,000 principal amount of the Notes, in a private placement to qualified institutional buyers in an offering exempt from registration under the Securities Act of 1933, as amended. The net proceeds from the issuance of the Notes was $120,741 after deducting transaction costs. The Notes are governed by an indenture (the Indenture) between us, as the issuer, and U.S. Bank, National Association, as trustee. The Notes are senior, unsecured obligations of ours and will be equal in right of payment with our senior, unsecured indebtedness; senior in right of payment to our indebtedness that is expressly subordinated to the notes; effectively subordinated to our senior, secured indebtedness, including future borrowings, if any, under our $20,000 credit facility with Silicon Valley Bank (SVB), to the extent of the value of the collateral securing that indebtedness; and structurally subordinated to all indebtedness and other liabilities, including trade payables, and (to the extent we are not a holder thereof) preferred equity, if any, of our subsidiaries. The Indenture includes customary covenants and sets forth certain events of default after which the Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the Notes become automatically due and payable. The Notes mature on August 1, 2025, unless earlier converted, redeemed or repurchased in accordance with their term prior to the maturity date. Interest is payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2021. The holders of the Notes may convert all or any portion of their Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price per share of our common stock exceeds 130% of the conversion price of $8.53 for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any ten consecutive trading day period (such ten consecutive trading day period, the measurement period) in which the trading price per $1 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions of our common stock; (4) if we call such Notes for redemption; and (5) at any time from, and including, May 1, 2025, until the close of business on the second scheduled trading day immediately before the maturity date. On or after May 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in minimum principal amount denominations of $1 or any integral multiple of $1 in excess thereof, at the option of the holder regardless of the foregoing circumstances. Upon conversion, we may satisfy our conversion obligation by paying or delivering, as applicable, cash, shares of common stock or a combination of cash and shares of common stock, at our election, in the manner and subject to the terms and conditions provided in the Indenture. The Notes have an initial conversion rate of 117.2367 shares of our common stock per $1 principal amount of Notes, which is equal to an initial conversion price of approximately $8.53 per share of our common stock. The initial conversion price of the Notes represents a premium of approximately 27.5% over the last reported sale price of our common stock on The Nasdaq Global Select Market of $6.69 per share on July 22, 2020. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will increase the conversion rate in certain circumstances for a holder who elects to convert its Notes in connection with such a corporate event or convert its Notes called (or deemed called) for redemption in connection with such notice of redemption, provided that the conversion rate will not exceed 149.4768 share of our common stock per $1 principal amount of Notes, subject to adjustment. We may not redeem the Notes prior to August 4, 2023. We may redeem for cash all, or any portion in an authorized denomination, of the Notes, at our option, on or after August 4, 2023, and on or prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days, whether or not consecutive, including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes, which means that we are not required to redeem or retire the Notes periodically. If we undergo a fundamental change (as defined in the Indenture), holders may require us to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of September 30, 2021, the conditions allowing holders of the Notes to convert had not been met and therefore the Notes are not yet convertible. The Notes are classified as long-term debt on our condensed consolidated balance sheet as of September 30, 2021, and the liability component of the notes are classified as long-term debt on our condensed consolidated balance sheet as of December 31, 2020. At the time of issuance in July 2020, we separately accounted for the liability and equity components of the Notes. We determined the initial carrying amount of the $102,500 liability component before consideration of debt discount and transaction fees by calculating the present value of the cash flows using an effective interest rate of 8.6%. The interest rate was determined based on non-convertible debt offerings of similar sizes and terms by companies with similar credit ratings (Level 2 inputs). The carrying amount of the equity component, representing the conversion option, was $22,500 and was calculated by deducting the initial carrying value of the liability component from the principal amount of the Notes as a whole. This difference represents a debt discount that is amortized to interest expense over the 5-year contractual term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. On January 1, 2021, we early adopted ASU 2020-06 on a modified retrospective basis. As a result of the adoption of ASU 2020-06, our total remaining interest expense over the contractual terms of our convertible debt will be approximately $20,823 less than under the previous accounting standards. The adoption resulted in a $21,733 decrease in additional paid in capital from the derecognition of the bifurcated equity component, $20,255 increase in debt from the derecognition of the discount associated with the bifurcated equity component and $1,677 decrease to the opening balance of accumulated deficit, representing the cumulative interest expense recognized related to the amortization of the bifurcated conversion option. We initially allocated transaction costs related to the issuance of the Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs initially attributable to the liability component were $3,400 and are being amortized to interest expense using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were $859. Following the adoption of ASU 2020-06, the transaction costs attributable to the original equity component are now being amortized to interest expense over the remaining term of the Notes. The net carrying amount of the liability and equity components of the Notes was as follows: September 30, December 31, 2021 2020 Liability component: Principal $ 125,000 $ 125,000 Debt discount (equity component) — (20,823) Unamortized transaction costs (3,424) (3,232) Net carrying amount $ 121,576 $ 100,945 Equity component, net of transaction costs $ — $ 21,733 Interest expense recognized related to the Notes was as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Contractual interest expense $ 1,094 $ 791 $ 3,259 $ 791 Amortization of debt discount — 753 — 753 Amortization of transaction costs 204 115 604 115 Total $ 1,298 $ 1,659 $ 3,863 $ 1,659 As of September 30, 2021, and December 31, 2020, the estimated fair value of the Notes was $111,238 and $114,233, respectively. We estimated the fair value based on the quoted market prices in an inactive market on the last trading day of the reporting period, which are considered Level 2 inputs. Capped Call Transactions In connection with the offering of the Notes, we entered into privately negotiated capped call transactions with certain counterparties (collectively, the Capped Calls). The Capped Calls have an initial strike price of approximately $8.53 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $13.38 per share, subject to certain adjustments. The Capped Calls are generally intended to reduce or offset the potential economic dilution of approximately 14.7 million shares to our common stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. As the Capped Calls are considered indexed to our own stock and are equity classified, they are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $16,400 incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. Line of Credit In November 2015 we entered into the original Loan and Security Agreement (the Credit Agreement) with SVB. Since the inception, there have been seven amendments, with the most recent amendment being in December 2020. The maximum principal commitment amount remains at $20,000. Our borrowing capacity is the lesser of the commitment amount or 80% of eligible accounts receivable. All outstanding borrowings owed under the Credit Agreement become due and payable no later than the final maturity date of November 2, 2022. As long as our Adjusted Quick Ratio remains above 1.5 to 1, we no longer are required to submit quarterly borrowing base reports. As of September 30, 2021, and December 31, 2020, we had no outstanding borrowings, and we had availability under the Credit Agreement of $20,000 and $20,000, respectively. As of September 30, 2021, borrowings under the Credit Agreement bear interest at the current prime rate minus 0.25%. In the event of default, obligations shall bear interest at a rate per annum that is 3% above the then applicable rate. Amendment fees and other commitment fees are included in interest expense. During the three months ended September 30, 2021 and 2020, there was no interest expense, and fees expense and amortization was $10 and $15, respectively. For the nine months ended September 30, 2021 and 2020, there was no interest expense, and fees expense and amortization was $36 and $97, respectively. Any borrowings are secured by essentially all of our domestic personal property, with a negative pledge on intellectual property. SVB’s security interest in our foreign subsidiaries is limited to 65% of the voting stock of each such foreign subsidiary. |
Restructuring Charge
Restructuring Charge | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charge | Restructuring Charge During the first quarter of 2021, management committed to restructure certain parts of the company to focus on improved growth and profitability. As a result, certain headcount reductions were implemented, and we incurred certain charges related to severance, share-based compensation, and professional fees. During the three months ended June 30, 2021, we incurred $2,155 of costs related to this restructuring plan. During the three months ended September 30, 2021, we recognized a cost recovery of $112, as actual expenses incurred were less than previously estimated. We do not expect any additional restructure charges related to this action plan. During the third quarter of 2021, management committed to restructure certain parts of the company to align our workforce and facility requirements with our continued investment in the business as we focus on cost efficiencies, improved growth and profitability. As a result, certain facilities, right of use assets, outside service contracts and professional fees were incurred. During the three months ended September 30, 2021, we incurred $1,882 of costs related to this restructuring plan. We expect approximately $1,000 of additional costs related primarily to consulting fees to restructure our datacenter architecture over the next 12 months. The following table summarizes the activity of our restructuring accrual (recorded in other current liabilities on our condensed consolidated balance sheet) during the three and nine months ended September 30, 2021 (in thousands): Employee Severance and Related Benefits Share-Based Compensation Facilities Related Charges Professional Fees and Other Total Balance as of January 1, 2021 $ — $ — $ — $ — $ — Costs incurred (recorded in restructuring charge) 3,513 1,354 — 2,006 6,873 Cash disbursements (1,143) — — (237) (1,380) Non-cash charges — (1,354) — — (1,354) Balance as of March 31, 2021 $ 2,370 $ — $ — $ 1,769 $ 4,139 Costs incurred (recorded in restructuring charge) (247) 917 1,485 2,155 Cash disbursements (1,203) — (2,902) (4,105) Non-cash charges — (917) — — (917) Balance as of June 30, 2021 $ 920 $ — $ — $ 352 $ 1,272 Costs incurred (recorded in restructuring charge) (1) (236) 1,882 125 1,770 Cash disbursements (357) — (465) (822) Non-cash charges (9) 383 (1,882) — (1,508) Balance as of September 30, 2021 $ 553 $ 147 $ — $ 12 $ 712 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters We are subject to various legal proceedings and claims, either asserted or unasserted, arising in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any of these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows and accordingly, no material legal contingencies were accrued as of September 30, 2021, and December 31, 2020. Litigation relating to the content delivery services industry is not uncommon, and we are, and from time to time have been, subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future. Taxes We are subject to indirect taxation in various states and foreign jurisdictions. Laws and regulations that apply to communications and commerce conducted over the Internet are becoming more prevalent, both in the United States and internationally, and may impose additional burdens on us conducting business online or providing Internet-related services. Increased regulation could negatively affect our business directly, as well as the businesses of our clients, which could reduce their demand for our services. For example, tax authorities in various states and abroad may impose taxes on the Internet-related revenue we generate based on regulations currently being applied to similar but not directly comparable industries. There are many transactions and calculations where the ultimate tax determination is uncertain. In addition, domestic and international taxation laws are subject to change. In the future, we may come under audit, which could result in changes to our tax estimates. We believe we maintain adequate tax reserves, that are not material in amount, to offset potential liabilities that may arise upon audit. Although we believe our tax estimates and associated reserves are reasonable, the final determination of tax audits and any related litigation could be materially different than the amounts established for tax contingencies. To the extent these estimates ultimately prove to be inaccurate, the associated reserves would be adjusted, resulting in the recording of a benefit or expense in the period in which a change in estimate or a final determination is made. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share We calculate basic and diluted loss per weighted average share. We use the weighted-average number of shares of common stock outstanding during the period for the computation of basic loss per share. Diluted loss per share include the dilutive effect of all potentially dilutive common stock, including awards granted under our equity incentive compensation plans in the weighted-average number of shares of common stock outstanding. The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net loss $ (10,105) $ (3,985) $ (49,332) $ (10,968) Basic weighted average outstanding shares of common stock 126,791 122,363 125,710 120,519 Basic weighted average outstanding shares of common stock 126,791 122,363 125,710 120,519 Dilutive effect of stock options, restricted stock units, and other equity incentive plans — — — — Diluted weighted average outstanding shares of common stock 126,791 122,363 125,710 120,519 Basic net loss per share $ (0.08) $ (0.03) $ (0.39) $ (0.09) Diluted net loss per share: $ (0.08) $ (0.03) $ (0.39) $ (0.09) For the three and nine months ended September 30, 2021 and 2020, respectively, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Employee stock purchase plan 314 187 314 187 Stock options and warrants 1,243 6,676 2,574 6,401 Restricted stock units 11,521 1,894 11,979 1,984 Convertible senior notes 14,654 14,654 14,654 14,654 27,732 23,411 29,521 23,226 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock On March 14, 2017, our board of directors authorized a $25,000 share repurchase program. Any shares repurchased under this program will be canceled and returned to authorized but unissued status. During the nine months ended September 30, 2021 and 2020, we did not repurchase any shares under the repurchase program. As of September 30, 2021, there remained $21,200 under this share repurchase program. Amended and Restated Equity Incentive Plan We established the 2007 Equity Incentive Plan, or the 2007 Plan, which allows for the grant of equity, including stock options and restricted stock unit awards. In June 2016, our stockholders approved the Amended and Restated 2007 Equity Incentive Plan, or the Restated 2007 Plan, which amended and restated the 2007 Plan. Approval of the Restated 2007 Plan replaced the terms and conditions of the 2007 Plan with the terms and conditions of the Restated 2007 Plan and extended the term of the plan to April 2026. There was no increase in the aggregate amount of shares available for issuance. The total number of shares authorized for issuance under the Restated 2007 Plan as of September 30, 2021 was approximately 12,912. Employee Stock Purchase Plan In June 2013, our stockholders approved our 2013 Employee Stock Purchase Plan (ESPP), authorizing the issuance of 4,000 shares. In May 2019, our stockholders approved the adoption of Amendment 1 to the ESPP. Amendment 1 increased the number of shares authorized to 9,000 shares (an increase of 5,000 shares) and amended the maximum number of shares of common stock that an eligible employee may be permitted to purchase during each offering period to be 5 shares. The ESPP allows participants to purchase our common stock at a 15% discount of the lower of the beginning or end of the offering period using the closing price on that day. During the three months ended September 30, 2021, we did not issue any shares under the ESPP. During the nine months ended September 30, 2021, we issued 355 shares under the ESPP. Total cash proceeds from the purchase of shares under the ESPP was approximately $913. As of September 30, 2021, shares reserved for issuance to employees under this plan totaled 3,330, and we held employee contributions of $631 (included in other current liabilities) for future purchases under the ESPP. Preferred Stock Our board of directors has authorized the issuance of up to 7,500 shares of preferred stock at September 30, 2021. The preferred stock may be issued in one or more series pursuant to a resolution or resolutions providing for such issuance duly adopted by the board of directors. As of September 30, 2021, the board of directors had not adopted any resolutions for the issuance of preferred stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2021, was as follows: Foreign Available for Currency Sale Securities Total Balance, December 31, 2020 $ (7,460) $ (51) $ (7,511) Other comprehensive loss before reclassifications (1,012) 32 (980) Amounts reclassified from accumulated other comprehensive — — — Net current period other comprehensive loss (1,012) 32 (980) Balance, September 30, 2021 $ (8,472) $ (19) $ (8,491) |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The following table summarizes the components of share-based compensation expense included in our consolidated statements of operations: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Share-based compensation expense by type: Stock options and warrants $ 144 $ 1,024 $ 7,395 $ 3,143 Restricted stock units 3,300 713 8,579 8,413 ESPP 213 186 503 682 Total share-based compensation expense $ 3,657 $ 1,923 $ 16,477 $ 12,238 Share-based compensation expense: Cost of services $ 438 $ 130 $ 1,142 $ 1,685 General and administrative expense 2,301 1,272 10,203 5,770 Sales and marketing expense 640 206 1,598 2,756 Research and development expense 662 315 1,647 2,027 Restructuring charge (384) — 1,887 — Total share-based compensation expense $ 3,657 $ 1,923 $ 16,477 $ 12,238 Unrecognized share-based compensation expense totaled approximately $42,652 at September 30, 2021, of which $5,692 related to stock options and $36,960 related to restricted stock units. Unrecognized share-based compensation includes both time-based and performance-based equity to be issued as part of our recent business acquisition. We currently expect to recognize share-based compensation expense of $5,458 during the remainder of 2021, $18,141 in 2022, and the remainder thereafter based on scheduled vesting of the stock options and restricted stock units outstanding at September 30, 2021. During the three months ended June 30, 2021, we issued two common stock warrants to an outside consulting firm. The first warrant was for up to an aggregate of 441,867 shares at an exercise price per share equal to $0.01 per share, and the second warrant was for up to an aggregate of 662,800 shares at an exercise price per share equal to $3.72 per share. During the three months ended June 30, 2021, we recognized approximately $917 in share-based compensation expense, which is included in the restructure charge. During the three months ended June 30, 2021, 55,233 shares from the first warrant and 82,850 shares from the second warrant vested. We have terminated the relationship with the outside consulting firm and there will be no further vesting. As of September 30, 2021, we agreed to provide the holder of the warrants a cash payment in exchange for the cancellation of the first warrant, including the 55,233 shares vested. The remaining 82,850 shares vested under the second warrant were outstanding as of September 30, 2021 and remain exercisable, subject to and conditioned upon the rights and restrictions contained in such warrant. On July 28, 2021, we signed a definitive agreement to acquire all of the issued and outstanding shares, options, warrants, convertible securities and other outstanding equity interests of Moov. As part of the purchase agreement, there is an incentive equity pool of $30,000 of restricted stock units to be granted to former Moov employees (including the Co-Founder) if they meet certain vesting criteria as follows: • $10,000 is subject to time-based vesting over a period of either 36 or 48 months; and • $20,000 is subject to achieving certain financial and operational metrics by June 30, 2025. We are recognizing the expense associated with this equity grant over a 28 month period. This resulted in a total of 11,198 restricted stock units, most of which will be granted as inducements to employment in accordance with NASDAQ Listing Rule 5635(c)(4). Also, in connection with our acquisition of Moov we agreed to assume all outstanding issued but unvested Moov stock options under the 2017 Moov Corporation Equity Incentive Plan. Following such conversion, we issued 818 stock options subject to time-based vesting under the Restated 2007 Plan, with exercises prices between $0.38 and $0.58 per share. During the three months ended March 31, 2021, we entered into transition agreements with four executives, which resulted in the modification of previously issued equity grants. The modifications were the result of us accelerating vesting after termination and extending the period of time the employee receives to exercise their outstanding non-qualified stock options. The extension of time to exercise their outstanding non-qualified stock options for the four individuals impacted ranged from six months to two years. The incremental expense recorded as a result of the modifications was $4,310, of which $1,116 was included in restructure charge, and $3,194 included in general and administrative expense. |
Operating Leases - Right of Use
Operating Leases - Right of Use Assets and Purchase Commitments | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases - Right of Use Assets and Purchase Commitments | Operating Leases - Right of Use Assets and Purchase Commitments Right of Use Assets We have various operating leases for office space that expire through 2030. Below is a summary of our right of use assets and liabilities as of September 30, 2021. Right-of-use assets $ 7,683 Lease liability obligations, current $ 1,966 Lease liability obligations, less current portion 10,045 Total lease liability obligations $ 12,011 Weighted-average remaining lease term 7.9 years Weighted-average discount rate 5.05 % During the three months ended September 30, 2021, we recognized approximately $398 in operating lease costs. Operating lease costs of $97 are included in cost of revenue, and $301 are included in operating expenses in our consolidated statements of operations. During the three months ended September 30, 2021, cash paid for operating leases was approximately $754. For the nine months ended September 30, 2021, we recognized approximately $1,827 in operating lease costs. Operating lease costs of $340 are included in cost of revenue, and $1,487 are included in operating expenses in our consolidated statements of operations. For the nine months ended September 30, 2021, cash paid for operating leases was approximately $2,317. During the three months ended September 30, 2020, we recognized approximately $752 in operating lease costs. Operating lease costs of $111 are included in cost of revenue, and $641 are included in operating expenses in our consolidated statements of operations. During the three months ended September 30, 2020, cash paid for operating leases was approximately $473. For the nine months ended September 30, 2020, we recognized approximately $2,350 in operating lease costs. Operating lease costs of $360 are included in cost of revenue, and $1,990 are included in operating expenses in our consolidated statements of operations. For the nine months ended September 30, 2020, cash paid for operating leases was approximately $1,438. Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of September 30, 2021, are as follows: Remainder of 2021 $ 678 2022 2,391 2023 1,811 2024 1,441 2025 1,440 Thereafter 6,829 Total minimum payments 14,590 Less: amount representing interest 2,579 Total $ 12,011 Purchase Commitments We have long-term commitments for bandwidth usage and co-location with various networks and Internet service providers. The following summarizes our minimum non-cancellable commitments for future periods as of September 30, 2021: Remainder of 2021 $ 18,911 2022 39,027 2023 17,941 2024 8,960 2025 5,993 Thereafter 3,372 Total minimum payments $ 94,204 |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations During the three and nine months ended September 30, 2021, we had two clients, Amazon and Sony, who each represented 10% or more of our total revenue. During the three months ended September 30, 2020, we had one client, Amazon who represented 10% or more of our total revenue. During the nine months ended September 30, 2020, we had two clients, Amazon and Sony who each represented 10% or more of our total revenue. Revenue from clients located within the United States, our country of domicile, was $33,405 for the three months ended September 30, 2021, compared to $38,075 for the three months ended September 30, 2020. For the nine months ended September 30, 2021, revenue from clients located within the United States $90,576, compared to $107,698 for the nine months ended September 30, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes for the interim periods presented have been included in the accompanying consolidated financial statements on the basis of an estimated annual effective tax rate. Based on an estimated annual effective tax rate and discrete items, income tax expense for the three months ended September 30, 2021 and 2020 was $211 and $66, respectively. For the nine months ended September 30, 2021 and 2020, income tax expense was $718 and $377, respectively. Income tax expense was different than the statutory income tax rate primarily due to us providing for a valuation allowance on deferred tax assets in certain jurisdictions, and the recording of state and foreign tax expense for the three month periods. We file income tax returns in jurisdictions with varying statutes of limitations. Tax years 2017 through 2019 remain subject to examination by federal tax authorities. Tax years 2016 through 2019 generally remain subject to examination by state tax authorities. As of September 30, 2021, we are not under any federal or state examination for income taxes. For the three and nine months ended September 30, 2021 and 2020, there was no impact to income tax expense related to the Global Intangible Low-Taxed Income inclusion (GILTI) as a result of our net operating loss carryforwards (NOL) and valuation allowance position. We do not expect the GILTI to have a material impact on future earnings due to our NOL and valuation allowance position. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. We have evaluated the impact of the CARES Act, and do not expect that the NOL carryback provision of the CARES Act will result in a cash benefit to us. |
Segment Reporting and Geographi
Segment Reporting and Geographic Areas | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Areas | Segment Reporting and Geographic Areas Our chief operating decision maker (who is our Chief Executive Officer) reviews our financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. We operate in one industry segment — content delivery and related services and we operate in three geographic areas — Americas, Europe, Middle East, and Africa (EMEA), and Asia Pacific. Revenue by geography is based on the location of the client from which the revenue is earned. The following table sets forth our revenue by geographic area: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Americas $ 34,065 62 % $ 38,594 65 % $ 92,432 60 % $ 109,652 63 % EMEA 6,427 12 % 8,590 15 % 20,986 14 % 27,411 16 % Asia Pacific 14,710 26 % 12,059 20 % 41,327 26 % 37,738 21 % Total revenue $ 55,202 100 % $ 59,243 100 % $ 154,745 100 % $ 174,801 100 % The following table sets forth the individual countries and their respective revenue for those countries whose revenue exceeded 10% of our total revenue: Three Months Ended September 30, Nine Months Ended September 30, Country / Region 2021 2020 2021 2020 United States / Americas $ 33,405 $ 38,075 $ 90,576 $ 107,698 United Kingdom / EMEA $ 2,675 $ 6,939 $ 13,031 $ 22,016 Japan / Asia Pacific $ 7,925 $ 7,703 $ 23,584 $ 24,251 The following table sets forth long-lived assets by geographic area in which the assets are located: September 30, December 31, 2021 2020 Americas $ 25,764 $ 32,626 International 10,628 13,792 Total long-lived assets $ 36,392 $ 46,418 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of September 30, 2021, and December 31, 2020, we held certain assets and liabilities that were required to be measured at fair value on a recurring basis. The following is a summary of fair value measurements at September 30, 2021: Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Significant Assets: Money market funds (2) $ 8,528 $ 8,528 $ — $ — Certificate of deposit (1) 1,915 — 1,915 — Corporate notes and bonds (1) 14,771 — 14,771 — Municipal securities (1) 19,555 — 19,555 — Total assets measured at fair value $ 44,769 $ 8,528 $ 36,241 $ — _______________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2020: Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Significant Assets: Money market funds (2) $ 12,370 $ 12,370 $ — $ — Certificate of deposit (1) 551 — 551 — Corporate notes and bonds (1) 45,385 — 45,385 — Municipal securities 31,032 — 31,032 — Total assets measured at fair value $ 89,338 $ 12,370 $ 76,968 $ — _______________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The carrying amount of cash equivalents approximates fair value because their maturity is less than three months. The carrying amount of short-term and long-term marketable securities approximates fair value as the securities are marked to market as of each balance sheet date with any unrealized gains and losses reported in stockholders’ equity. The carrying amount of accounts receivable, accounts payable, and accrued liabilities approximates fair value due to the short-term maturity of the amounts. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities Exchange Commission (SEC). They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2020. All information is presented in thousands, except per share amounts and where specifically noted. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or for any future periods. |
Recent Accounting Standards | Recent Accounting Standards Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12 to simplifying the accounting for income taxes. ASU 2019-12 is intended to simplify various aspects related to accounting for income taxes, eliminates certain exceptions to the general principles in the Accounting Standards Codification (ASC) Topic 740 related to intra-period tax allocation, simplifies when companies recognize deferred taxes in an interim period, and clarifies certain aspects of the current guidance to promote consistent application. We adopted this guidance effective January 1, 2021. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for convertible instruments. ASU 2020-06 eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. ASU 2020-06 also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. We early adopted this guidance on January 1, 2021, on a modified retrospective basis. As a result of the adoption of ASU 2020-06, our total remaining interest expense over the contractual terms of our convertible debt will be approximately $20,823 less than under the previous accounting standards. The adoption resulted in a $21,733 decrease in additional paid in capital from the derecognition of the bifurcated equity component, $20,255 increase in debt from the derecognition of the discount associated with the bifurcated equity component and $1,677 decrease to the opening balance of accumulated deficit, representing the cumulative interest expense recognized related to the amortization of the bifurcated conversion option. We wrote-off the related deferred tax liabilities with a corresponding adjustment to the valuation allowance, resulting in no net tax impact to the cumulative adjustment to retained earnings. Recently Issued Accounting Standards In October 2021, the FASB issued ASU 2021-08, which provides amendments to improve, simplify, and provide consistency for recognition and measurement of acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments require that an acquirer recognize and measure such contract assets and contract liabilities under Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. The amendments also allow for election of certain practical expedients, which are applied on an acquisition-by-acquisition basis. The new accounting amendments are effective for us beginning in fiscal 2023 with prospective application. Early adoption is permitted, including in any interim period, and if elected, the amendments are applied retrospectively for any acquisitions that occurred in the fiscal year of interim adoption. We expect to early adopt this ASU and are evaluating the impacts of the amendments on our condensed consolidated financial statements. |
Restructuring Charges | Restructuring Charges |
Convertible Senior Notes | Convertible Senior Notes |
Business Combinations | Business Combinations In accounting for acquisitions through which a set of assets and activities are transferred to us, we perform an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If the initial test does not result in substantially all of the fair value concentrated in a single or group of similar assets, we then perform a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that, together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test indicates that the acquired assets and activities constitute a business, we account for the transaction as a business combination. For our business combinations, we allocate the purchase consideration of the acquisition, which includes the estimated acquisition date fair value of contingent consideration (if applicable), to the tangible assets, liabilities and identifiable intangible assets acquired based on each of the estimated fair values at the acquisition date. The excess of the purchase consideration over the fair values is recorded as goodwill. Determining the fair value of such items requires judgment, including estimating future cash flows or the cost to recreate an acquired asset. Acquisition-related expenses are expensed as incurred, except for those costs incurred to issue debt or equity securities (if applicable), and are included in general and administrative expense in our consolidated statements of operations. During and up to the one-year period beginning with the acquisition date, we may record certain purchase accounting adjustments related to the fair value of assets acquired and liabilities assumed against goodwill. After the final determination of the fair value of assets acquired or liabilities assumed, any subsequent adjustments are recorded to our consolidated statements of operations. The fair value of contingent consideration liabilities assumed from an acquisition are remeasured each reporting period after the acquisition date and the changes in the estimated fair value, if any, are recorded within operating expenses in our consolidated statement of operations for such period. In accounting for income taxes in a business combination, changes in the deferred tax asset valuations allowance and income tax uncertainties after the acquisition date will be recognized through income tax expense in our consolidated statement of operations each reporting period. The results of operations of the acquired business are included in our consolidated statement of operations since the date of acquisition. |
Finite Intangible Assets | Finite Intangible Assets Finite-lived intangible assets are amortized over the following estimated useful lives: Trade name 3.0 years Customer relationships 5.0 years Technology 7.0 years Our finite-lived intangible assets are primarily amortized on a straight-line basis. We annually evaluate the estimated remaining useful lives of our intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Long-lived and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. An impairment loss is recognized if the sum of the expected long-term undiscounted cash flows the asset is expected to generate is less than its carrying amount. Any write-downs are treated as permanent reductions in the carrying amount of the respective asset. Our analysis did not indicate impairment during any of the periods presented. |
Share-Based Compensation | Share-Based Compensation We account for our share-based compensation awards using the fair-value method. The grant date fair value was determined using the Black-Scholes-Merton pricing model. The Black-Scholes-Merton valuation calculation requires us to make key assumptions such as future stock price volatility, expected terms, risk-free rates, and dividend yield. Our expected volatility is derived from our volatility rate as a publicly traded company. The expected term is based on our historical experience. The risk-free interest factor is based on the United States Treasury yield curve in effect at the time of the grant for zero coupon United States Treasury notes with maturities of approximately equal to each grant’s expected term. We have never paid cash dividends and do not currently intend to pay cash dividends, and therefore, we have assumed a 0% dividend yield. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our clients, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Finite-lived intangible assets are amortized over the following estimated useful lives: Trade name 3.0 years Customer relationships 5.0 years Technology 7.0 years Intangible assets consist of the following as of September 30, 2021: Gross Accumulated Net Trade name $ 91 $ (3) $ 88 Customer relationships 7,090 (118) 6,972 Technology 16,820 (200) 16,620 Total other intangible assets $ 24,001 $ (321) $ 23,680 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisition Purchase Price | The following table presents the allocation of the purchase price for Moov: Consideration: Cash $ 34,054 Common stock 18,433 Total consideration $ 52,487 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase consideration to the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired: Cash $ 3,130 Accounts receivable 2,515 Prepaid expenses and other current assets 273 Goodwill 27,479 Intangible assets Trade name 91 Customer relationships 7,090 Technology 16,820 Total assets acquired 57,398 Accounts payable and accrued liabilities 2,432 Deferred revenue 2,479 Total liabilities 4,911 Total purchase consideration $ 52,487 |
Investments in Marketable Sec_2
Investments in Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | The following is a summary of marketable securities (designated as available-for-sale) at September 30, 2021: Amortized Gross Gross Estimated Certificate of deposit $ 1,915 $ — $ — $ 1,915 Corporate notes and bonds 14,780 7 16 14,771 Municipal securities 19,562 — 7 19,555 Total marketable securities $ 36,257 $ 7 $ 23 $ 36,241 The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2020: Amortized Gross Gross Estimated Certificate of deposit $ 551 $ — $ — $ 551 Corporate notes and bonds 45,426 — 41 45,385 Municipal securities 31,039 1 8 31,032 Total marketable securities $ 77,016 $ 1 $ 49 $ 76,968 |
Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity | The amortized cost and estimated fair value of marketable securities at September 30, 2021, by maturity are shown below: Amortized Gross Gross Estimated Available-for-sale securities: Due in one year or less $ 36,217 $ 7 $ 23 $ 36,201 Due after one year and through five years 40 — — 40 Total marketable securities $ 36,257 $ 7 $ 23 $ 36,241 The amortized cost and estimated fair value of marketable securities at December 31, 2020, by maturity are shown below: Amortized Gross Gross Estimated Available-for-sale securities: Due in one year or less $ 76,976 $ 1 $ 49 $ 76,928 Due after one year and through five years 40 — — 40 Total marketable securities $ 77,016 $ 1 $ 49 $ 76,968 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Summary of Accounts Receivable and Allowances for Doubtful Accounts | Accounts receivable, net include: September 30, December 31, 2021 2020 Accounts receivable $ 48,007 $ 32,857 Less: credit allowance (150) (170) Less: allowance for doubtful accounts (1,678) (1,012) Total accounts receivable, net $ 46,179 $ 31,675 The following is a roll-forward of the allowances for doubtful accounts related to trade accounts receivable for the nine months ended September 30, 2021 and the twelve months ended December 31, 2020: Nine Months Ended Twelve Months Ended September 30, 2021 December 31, 2020 Beginning of period $ 1,012 $ 973 Provision for credit losses 1,047 801 Write-offs (381) (762) End of period $ 1,678 $ 1,012 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets include: September 30, December 31, 2021 2020 Prepaid bandwidth and backbone 1,530 3,519 VAT receivable 4,454 4,392 Prepaid expenses and insurance 3,011 2,906 Vendor deposits and other 4,401 4,771 Total prepaid expenses and other current assets $ 13,396 $ 15,588 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net include: September 30, December 31, 2021 2020 Network equipment $ 125,665 $ 136,788 Computer equipment and software 7,014 7,358 Furniture and fixtures 1,412 1,703 Leasehold improvements 7,158 7,470 Other equipment 18 21 Total property and equipment 141,267 153,340 Less: accumulated depreciation (104,875) (106,922) Total property and equipment, net $ 36,392 $ 46,418 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2021, were as follows: Balance, December 31, 2020 $ 77,753 Foreign currency translation adjustment (332) Balance, March 31, 2021 $ 77,421 Foreign currency translation adjustment 221 Balance, June 30, 2021 $ 77,642 Acquisition of business 27,479 Foreign currency translation adjustment 100 Balance, September 30, 2021 $ 105,221 |
Schedule of Finite-Lived Intangible Assets | Finite-lived intangible assets are amortized over the following estimated useful lives: Trade name 3.0 years Customer relationships 5.0 years Technology 7.0 years Intangible assets consist of the following as of September 30, 2021: Gross Accumulated Net Trade name $ 91 $ (3) $ 88 Customer relationships 7,090 (118) 6,972 Technology 16,820 (200) 16,620 Total other intangible assets $ 24,001 $ (321) $ 23,680 |
Schedule of Intangible Assets Future Amortization Expense | As of September 30, 2021, future amortization expense related to our other intangible assets is expected to be recognized as follows: Remainder of 2021 $ 963 2022 3,851 2023 3,851 2024 3,841 2025 3,821 Thereafter 7,353 Total $ 23,680 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities include: September 30, December 31, 2021 2020 Accrued compensation and benefits $ 6,789 $ 5,964 Accrued cost of revenue 2,649 5,036 Accrued interest payable 729 1,894 Restructuring charges 712 — Accrued legal fees 1,133 61 Other accrued expenses 5,938 4,605 Total other current liabilities $ 17,950 $ 17,560 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | The net carrying amount of the liability and equity components of the Notes was as follows: September 30, December 31, 2021 2020 Liability component: Principal $ 125,000 $ 125,000 Debt discount (equity component) — (20,823) Unamortized transaction costs (3,424) (3,232) Net carrying amount $ 121,576 $ 100,945 Equity component, net of transaction costs $ — $ 21,733 Interest expense recognized related to the Notes was as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Contractual interest expense $ 1,094 $ 791 $ 3,259 $ 791 Amortization of debt discount — 753 — 753 Amortization of transaction costs 204 115 604 115 Total $ 1,298 $ 1,659 $ 3,863 $ 1,659 |
Restructuring Charge (Tables)
Restructuring Charge (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes the activity of our restructuring accrual (recorded in other current liabilities on our condensed consolidated balance sheet) during the three and nine months ended September 30, 2021 (in thousands): Employee Severance and Related Benefits Share-Based Compensation Facilities Related Charges Professional Fees and Other Total Balance as of January 1, 2021 $ — $ — $ — $ — $ — Costs incurred (recorded in restructuring charge) 3,513 1,354 — 2,006 6,873 Cash disbursements (1,143) — — (237) (1,380) Non-cash charges — (1,354) — — (1,354) Balance as of March 31, 2021 $ 2,370 $ — $ — $ 1,769 $ 4,139 Costs incurred (recorded in restructuring charge) (247) 917 1,485 2,155 Cash disbursements (1,203) — (2,902) (4,105) Non-cash charges — (917) — — (917) Balance as of June 30, 2021 $ 920 $ — $ — $ 352 $ 1,272 Costs incurred (recorded in restructuring charge) (1) (236) 1,882 125 1,770 Cash disbursements (357) — (465) (822) Non-cash charges (9) 383 (1,882) — (1,508) Balance as of September 30, 2021 $ 553 $ 147 $ — $ 12 $ 712 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net loss $ (10,105) $ (3,985) $ (49,332) $ (10,968) Basic weighted average outstanding shares of common stock 126,791 122,363 125,710 120,519 Basic weighted average outstanding shares of common stock 126,791 122,363 125,710 120,519 Dilutive effect of stock options, restricted stock units, and other equity incentive plans — — — — Diluted weighted average outstanding shares of common stock 126,791 122,363 125,710 120,519 Basic net loss per share $ (0.08) $ (0.03) $ (0.39) $ (0.09) Diluted net loss per share: $ (0.08) $ (0.03) $ (0.39) $ (0.09) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the three and nine months ended September 30, 2021 and 2020, respectively, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Employee stock purchase plan 314 187 314 187 Stock options and warrants 1,243 6,676 2,574 6,401 Restricted stock units 11,521 1,894 11,979 1,984 Convertible senior notes 14,654 14,654 14,654 14,654 27,732 23,411 29,521 23,226 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Changes in the components of accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2021, was as follows: Foreign Available for Currency Sale Securities Total Balance, December 31, 2020 $ (7,460) $ (51) $ (7,511) Other comprehensive loss before reclassifications (1,012) 32 (980) Amounts reclassified from accumulated other comprehensive — — — Net current period other comprehensive loss (1,012) 32 (980) Balance, September 30, 2021 $ (8,472) $ (19) $ (8,491) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Components of Share-based Compensation Expense | The following table summarizes the components of share-based compensation expense included in our consolidated statements of operations: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Share-based compensation expense by type: Stock options and warrants $ 144 $ 1,024 $ 7,395 $ 3,143 Restricted stock units 3,300 713 8,579 8,413 ESPP 213 186 503 682 Total share-based compensation expense $ 3,657 $ 1,923 $ 16,477 $ 12,238 Share-based compensation expense: Cost of services $ 438 $ 130 $ 1,142 $ 1,685 General and administrative expense 2,301 1,272 10,203 5,770 Sales and marketing expense 640 206 1,598 2,756 Research and development expense 662 315 1,647 2,027 Restructuring charge (384) — 1,887 — Total share-based compensation expense $ 3,657 $ 1,923 $ 16,477 $ 12,238 |
Operating Leases - Right of U_2
Operating Leases - Right of Use Assets and Purchase Commitments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Right-of-use Assets and Lease Liabilities | Below is a summary of our right of use assets and liabilities as of September 30, 2021. Right-of-use assets $ 7,683 Lease liability obligations, current $ 1,966 Lease liability obligations, less current portion 10,045 Total lease liability obligations $ 12,011 Weighted-average remaining lease term 7.9 years Weighted-average discount rate 5.05 % |
Future Minimum Lease Payments Over Remaining Lease Periods | Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of September 30, 2021, are as follows: Remainder of 2021 $ 678 2022 2,391 2023 1,811 2024 1,441 2025 1,440 Thereafter 6,829 Total minimum payments 14,590 Less: amount representing interest 2,579 Total $ 12,011 |
Minimum Purchase Commitments | The following summarizes our minimum non-cancellable commitments for future periods as of September 30, 2021: Remainder of 2021 $ 18,911 2022 39,027 2023 17,941 2024 8,960 2025 5,993 Thereafter 3,372 Total minimum payments $ 94,204 |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Revenue Earned by Geographic Area | The following table sets forth our revenue by geographic area: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Americas $ 34,065 62 % $ 38,594 65 % $ 92,432 60 % $ 109,652 63 % EMEA 6,427 12 % 8,590 15 % 20,986 14 % 27,411 16 % Asia Pacific 14,710 26 % 12,059 20 % 41,327 26 % 37,738 21 % Total revenue $ 55,202 100 % $ 59,243 100 % $ 154,745 100 % $ 174,801 100 % |
Schedule of Concentration of Revenue by Country | The following table sets forth the individual countries and their respective revenue for those countries whose revenue exceeded 10% of our total revenue: Three Months Ended September 30, Nine Months Ended September 30, Country / Region 2021 2020 2021 2020 United States / Americas $ 33,405 $ 38,075 $ 90,576 $ 107,698 United Kingdom / EMEA $ 2,675 $ 6,939 $ 13,031 $ 22,016 Japan / Asia Pacific $ 7,925 $ 7,703 $ 23,584 $ 24,251 |
Long-lived Assets by Geographical Area | The following table sets forth long-lived assets by geographic area in which the assets are located: September 30, December 31, 2021 2020 Americas $ 25,764 $ 32,626 International 10,628 13,792 Total long-lived assets $ 36,392 $ 46,418 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Investments | The following is a summary of fair value measurements at September 30, 2021: Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Significant Assets: Money market funds (2) $ 8,528 $ 8,528 $ — $ — Certificate of deposit (1) 1,915 — 1,915 — Corporate notes and bonds (1) 14,771 — 14,771 — Municipal securities (1) 19,555 — 19,555 — Total assets measured at fair value $ 44,769 $ 8,528 $ 36,241 $ — _______________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2020: Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Significant Assets: Money market funds (2) $ 12,370 $ 12,370 $ — $ — Certificate of deposit (1) 551 — 551 — Corporate notes and bonds (1) 45,385 — 45,385 — Municipal securities 31,032 — 31,032 — Total assets measured at fair value $ 89,338 $ 12,370 $ 76,968 $ — _______________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jul. 27, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||||
Increase (decrease) in equity | $ 141,323 | $ 130,884 | $ 175,192 | $ 177,679 | $ 169,815 | $ 166,537 | |
Convertible senior notes, net | $ 121,576 | 100,945 | |||||
Expected dividend rate | 0.00% | ||||||
Additional Paid-In Capital | |||||||
Debt Instrument [Line Items] | |||||||
Increase (decrease) in equity | $ 571,268 | 550,205 | 556,512 | 552,559 | 541,363 | 530,285 | |
Accumulated Deficit | |||||||
Debt Instrument [Line Items] | |||||||
Increase (decrease) in equity | $ (421,588) | $ (411,483) | (373,933) | $ (365,624) | $ (361,639) | $ (354,656) | |
Cumulative effect of adoption of new accounting pronouncement | |||||||
Debt Instrument [Line Items] | |||||||
Decrease in interest payable | 20,823 | ||||||
Increase (decrease) in equity | (20,056) | ||||||
Convertible senior notes, net | 20,255 | ||||||
Cumulative effect of adoption of new accounting pronouncement | Additional Paid-In Capital | |||||||
Debt Instrument [Line Items] | |||||||
Increase (decrease) in equity | (21,733) | ||||||
Cumulative effect of adoption of new accounting pronouncement | Accumulated Deficit | |||||||
Debt Instrument [Line Items] | |||||||
Increase (decrease) in equity | $ 1,677 | ||||||
Convertible Senior Notes due 2025 | Convertible debt | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 125,000 | ||||||
Stated interest rate | 3.50% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Finite-Lived Intangible Assets (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 3 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 5 years |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jul. 28, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Contract terms | These clients have entered into contracts with contract terms generally from one to four years. | |||||
Committed revenue from minimum commitment contracts | $ 4,051 | $ 4,051 | $ 4,051 | |||
Revenue recognized in period | 2,418 | $ 1,911 | 6,774 | $ 6,008 | ||
Moov Corporation | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Committed revenue from minimum commitment contracts | 1,981 | 1,981 | 1,981 | |||
Deferred revenue | 2,479 | $ 2,479 | $ 2,479 | $ 2,479 | ||
Revenue recognized, excluding opening balance | $ 498 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Remaining unsatisfied performance obligations to be recognized period | 3 months | 3 months | 3 months | |||
Percent of remaining unsatisfied performance obligations to be recognized | 47.00% | 47.00% | 47.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Moov Corporation | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Remaining unsatisfied performance obligations to be recognized period | 3 months | 3 months | 3 months | |||
Percent of remaining unsatisfied performance obligations to be recognized | 46.00% | 46.00% | 46.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Remaining unsatisfied performance obligations to be recognized period | 1 year | 1 year | 1 year | |||
Percent of remaining unsatisfied performance obligations to be recognized | 51.00% | 51.00% | 51.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Moov Corporation | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Remaining unsatisfied performance obligations to be recognized period | 1 year | 1 year | 1 year | |||
Percent of remaining unsatisfied performance obligations to be recognized | 54.00% | 54.00% | 54.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Remaining unsatisfied performance obligations to be recognized period | 1 year | 1 year | 1 year | |||
Percent of remaining unsatisfied performance obligations to be recognized | 2.00% | 2.00% | 2.00% |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Aug. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Acquired intangible assets, weighted average useful life | 6 years 4 months 24 days | ||||
Moov Corporation | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, percentage of interests acquired | 100.00% | 100.00% | 100.00% | ||
Consideration transferred | $ 52,487 | ||||
Consideration transferred, cash | $ 34,054 | ||||
Consideration transferred, number of shares issued | 6,878 | ||||
Consideration transferred, equity | $ 18,433 | ||||
Contingent consideration, liability | $ 4,300 | $ 4,300 | $ 4,300 | ||
Cash consideration, earnout period | 3 years | ||||
Business acquisition, share price (in dollars per share) | $ 2.68 | $ 2.68 | $ 2.68 | ||
Revenue of acquiree since acquisition date | $ 817 | $ 817 | |||
Loss of acquiree since acquisition date | 450 | 450 | |||
Revenue of acquiree prior to acquisition date | $ 8,969 | $ 13,400 | |||
Loss of acquiree prior to acquisition date | $ 628 | $ 600 | |||
Business acquisition, transaction costs | $ 1,263 | $ 1,441 |
Business Acquisition - Schedule
Business Acquisition - Schedule of Business Acquisition Purchase Price (Details) - Moov Corporation $ in Thousands | 1 Months Ended |
Sep. 30, 2021USD ($) | |
Consideration: | |
Cash | $ 34,054 |
Common stock | 18,433 |
Total consideration | $ 52,487 |
Business Acquisition - Schedu_2
Business Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jul. 28, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 105,221 | $ 77,642 | $ 77,421 | $ 77,753 | |
Moov Corporation | |||||
Business Acquisition [Line Items] | |||||
Cash | 3,130 | ||||
Accounts receivable | 2,515 | ||||
Prepaid expenses and other current assets | 273 | ||||
Goodwill | 27,479 | ||||
Total assets acquired | 57,398 | ||||
Accounts payable and accrued liabilities | 2,432 | ||||
Deferred revenue | 2,479 | $ 2,479 | |||
Total liabilities | 4,911 | ||||
Total purchase consideration | 52,487 | ||||
Moov Corporation | Trade name | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 91 | ||||
Moov Corporation | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 7,090 | ||||
Moov Corporation | Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 16,820 |
Investments in Marketable Sec_3
Investments in Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 36,257 | $ 77,016 |
Gross Unrealized Gains | 7 | 1 |
Gross Unrealized Losses | 23 | 49 |
Estimated Fair Value | 36,241 | 76,968 |
Certificate of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,915 | 551 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,915 | 551 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,780 | 45,426 |
Gross Unrealized Gains | 7 | 0 |
Gross Unrealized Losses | 16 | 41 |
Estimated Fair Value | 14,771 | 45,385 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,562 | 31,039 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 7 | 8 |
Estimated Fair Value | $ 19,555 | $ 31,032 |
Investments in Marketable Sec_4
Investments in Marketable Securities - Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 36,217 | $ 76,976 |
Amortized Cost, Due after one year and through five years | 40 | 40 |
Amortized Cost | 36,257 | 77,016 |
Gross Unrealized Gains, Due in one year or less | 7 | 1 |
Gross Unrealized Gains, Due after one year and through five years | 0 | 0 |
Gross Unrealized Gains | 7 | 1 |
Gross Unrealized Losses, Due in one year or less | 23 | 49 |
Gross Unrealized Losses, Due after one year and through five years | 0 | 0 |
Gross Unrealized Losses | 23 | 49 |
Estimated Fair Value, Due in one year or less | 36,201 | 76,928 |
Estimated Fair Value, Due after one year and through five years | 40 | 40 |
Estimated Fair Value | $ 36,241 | $ 76,968 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Summary of Accounts Receivable, net | |||
Accounts receivable | $ 48,007 | $ 32,857 | |
Less: credit allowance | (150) | (170) | |
Less: allowance for doubtful accounts | (1,678) | (1,012) | |
Total accounts receivable, net | 46,179 | 31,675 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning of period | 1,012 | $ 973 | 973 |
Provision for credit losses | 1,047 | $ 476 | 801 |
Write-offs | (381) | (762) | |
End of period | $ 1,678 | $ 1,012 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid bandwidth and backbone | $ 1,530 | $ 3,519 |
VAT receivable | 4,454 | 4,392 |
Prepaid expenses and insurance | 3,011 | 2,906 |
Vendor deposits and other | 4,401 | 4,771 |
Total prepaid expenses and other current assets | $ 13,396 | $ 15,588 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property and equipment, net | ||
Total property and equipment | $ 141,267 | $ 153,340 |
Less: accumulated depreciation | (104,875) | (106,922) |
Total property and equipment, net | 36,392 | 46,418 |
Network equipment | ||
Property and equipment, net | ||
Total property and equipment | 125,665 | 136,788 |
Computer equipment and software | ||
Property and equipment, net | ||
Total property and equipment | 7,014 | 7,358 |
Furniture and fixtures | ||
Property and equipment, net | ||
Total property and equipment | 1,412 | 1,703 |
Leasehold improvements | ||
Property and equipment, net | ||
Total property and equipment | 7,158 | 7,470 |
Other equipment | ||
Property and equipment, net | ||
Total property and equipment | $ 18 | $ 21 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Cost of revenue depreciation expense | $ 5,685 | $ 5,602 | $ 17,293 | $ 16,112 |
Operating expense depreciation | $ 409 | $ 384 | $ 1,497 | $ 1,049 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($)reportingUnit | |
Finite-Lived Intangible Assets [Line Items] | ||
Number of reporting units | reportingUnit | 1 | |
Amortization expense, intangible assets | $ 321,000 | $ 321,000 |
Impairment of intangible assets | $ 0 | $ 0 |
Acquired intangible assets, weighted average useful life | 6 years 4 months 24 days | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, weighted average useful life | 3 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, weighted average useful life | 5 years | |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, weighted average useful life | 7 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 77,642 | $ 77,421 | $ 77,753 |
Acquisition of business | 27,479 | ||
Foreign currency translation adjustment | 100 | 221 | (332) |
Ending balance | $ 105,221 | $ 77,642 | $ 77,421 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 24,001 |
Accumulated Amortization | (321) |
Net Carrying Amount | 23,680 |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 91 |
Accumulated Amortization | (3) |
Net Carrying Amount | 88 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 7,090 |
Accumulated Amortization | (118) |
Net Carrying Amount | 6,972 |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 16,820 |
Accumulated Amortization | (200) |
Net Carrying Amount | $ 16,620 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Intangible Assets Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 963 |
2022 | 3,851 |
2023 | 3,851 |
2024 | 3,841 |
2025 | 3,821 |
Thereafter | 7,353 |
Net Carrying Amount | $ 23,680 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||||
Accrued compensation and benefits | $ 6,789 | $ 5,964 | ||
Accrued cost of revenue | 2,649 | 5,036 | ||
Accrued interest payable | 729 | 1,894 | ||
Restructuring charges | 712 | $ 1,272 | $ 4,139 | 0 |
Accrued legal fees | 1,133 | 61 | ||
Other accrued expenses | 5,938 | 4,605 | ||
Total other current liabilities | $ 17,950 | $ 17,560 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Millions | Jul. 27, 2020USD ($)tradingDay$ / sharesshares | Jul. 31, 2020USD ($) | Nov. 30, 2015USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 22, 2020$ / shares | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||||||||||
Share price (in dollars per share) | $ / shares | $ 6.69 | |||||||||||
Increase (decrease) in equity | $ 141,323,000 | $ 177,679,000 | $ 141,323,000 | $ 177,679,000 | $ 130,884,000 | $ 175,192,000 | $ 169,815,000 | $ 166,537,000 | ||||
Convertible senior notes, net | 121,576,000 | 121,576,000 | 100,945,000 | |||||||||
Convertible debt, fair value | 111,238,000 | 111,238,000 | 114,233,000 | |||||||||
Costs incurred for capped calls | 16,413,000 | 16,413,000 | ||||||||||
Additional Paid-In Capital | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Increase (decrease) in equity | 571,268,000 | 552,559,000 | 571,268,000 | 552,559,000 | 550,205,000 | 556,512,000 | 541,363,000 | 530,285,000 | ||||
Costs incurred for capped calls | 16,413,000 | 16,413,000 | ||||||||||
Accumulated Deficit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Increase (decrease) in equity | (421,588,000) | (365,624,000) | (421,588,000) | (365,624,000) | $ (411,483,000) | (373,933,000) | $ (361,639,000) | $ (354,656,000) | ||||
Cumulative effect of adoption of new accounting pronouncement | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Decrease in interest payable | 20,823,000 | |||||||||||
Increase (decrease) in equity | (20,056,000) | |||||||||||
Convertible senior notes, net | 20,255,000 | |||||||||||
Cumulative effect of adoption of new accounting pronouncement | Additional Paid-In Capital | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Increase (decrease) in equity | (21,733,000) | |||||||||||
Cumulative effect of adoption of new accounting pronouncement | Accumulated Deficit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Increase (decrease) in equity | 1,677,000 | |||||||||||
Capped call | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Initial strike price (in dollars per share) | $ / shares | $ 8.53 | |||||||||||
Initial cap price (in dollars per share) | $ / shares | $ 13.38 | |||||||||||
Number of shares covered by capped calls | shares | 14.7 | |||||||||||
Costs incurred for capped calls | $ 16,400,000 | |||||||||||
Convertible Senior Notes due 2025 | Convertible debt | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Aggregate principal amount | $ 125,000,000 | |||||||||||
Stated interest rate | 3.50% | |||||||||||
Additional principal amount, option | $ 15,000,000 | |||||||||||
Net proceeds from debt issuance | $ 120,741,000 | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 8.53 | |||||||||||
Conversion ratio | 0.1172367 | |||||||||||
Share price premium | 27.50% | |||||||||||
Carrying amount | $ 102,500,000 | 121,576,000 | 121,576,000 | 100,945,000 | ||||||||
Effective interest rate | 8.60% | |||||||||||
Equity component, gross amount | $ 22,500,000 | |||||||||||
Debt term | 5 years | |||||||||||
Transaction costs, liability component | $ 3,400,000 | |||||||||||
Transaction costs, equity component | $ 859,000 | |||||||||||
Contractual interest expense | 1,094,000 | 791,000 | 3,259,000 | 791,000 | ||||||||
Amortization of transaction costs | 204,000 | 115,000 | 604,000 | 115,000 | ||||||||
Convertible Senior Notes due 2025 | Convertible debt | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Conversion ratio | 0.1494768 | |||||||||||
Convertible Senior Notes due 2025 | Convertible debt | Conversion covenant one | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Threshold percentage of stock price trigger | 130.00% | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 8.53 | |||||||||||
Threshold trading days | tradingDay | 20 | |||||||||||
Threshold consecutive trading days | tradingDay | 30 | |||||||||||
Convertible Senior Notes due 2025 | Convertible debt | Conversion covenant two | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Threshold percentage of stock price trigger | 98.00% | |||||||||||
Threshold consecutive trading days | tradingDay | 10 | |||||||||||
Consecutive trading days immediately after measurement period | tradingDay | 5 | |||||||||||
Convertible Senior Notes due 2025 | Convertible debt | Redemption option | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Threshold percentage of stock price trigger | 130.00% | |||||||||||
Threshold trading days | tradingDay | 41 | |||||||||||
Threshold consecutive trading days | tradingDay | 30 | |||||||||||
Redemption price percentage | 100.00% | |||||||||||
Convertible Senior Notes due 2025 | Convertible debt | Upon fundamental change | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Redemption price percentage | 100.00% | |||||||||||
Revolving credit facility | Credit Agreement | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing amount | $ 20,000,000 | |||||||||||
Borrowing capacity limit, percent of accounts receivable | 80.00% | |||||||||||
Adjusted quick ratio, monthly report submission threshold | 1.5 | |||||||||||
Proceeds from line of credit | 0 | 0 | 0 | |||||||||
Current borrowing capacity | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | |||||||||
Increase in interest rate in event of default | 3.00% | 3.00% | ||||||||||
Contractual interest expense | $ 0 | 0 | $ 0 | 0 | ||||||||
Amortization of transaction costs | $ 10,000 | $ 15,000 | $ 36,000 | $ 97,000 | ||||||||
Voting stock percentage in foreign subsidiaries | 65.00% | |||||||||||
Line of credit facility, covenant compliance, adjusted quick ratio | 1 | 1 | ||||||||||
Revolving credit facility | Credit Agreement | Alternative base rate | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Variable rate minimum | 0.25% |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Debt (Details) - Convertible debt - Convertible Senior Notes due 2025 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jul. 31, 2020 | |
Liability component: | ||||||
Principal | $ 125,000 | $ 125,000 | $ 125,000 | |||
Debt discount (equity component) | 0 | 0 | (20,823) | |||
Unamortized transaction costs | (3,424) | (3,424) | (3,232) | |||
Net carrying amount | 121,576 | 121,576 | 100,945 | $ 102,500 | ||
Equity component, net of transaction costs | $ 21,733 | |||||
Interest Expense | ||||||
Contractual interest expense | 1,094 | $ 791 | 3,259 | $ 791 | ||
Amortization of debt discount | 0 | 753 | 0 | 753 | ||
Amortization of transaction costs | 204 | 115 | 604 | 115 | ||
Total | $ 1,298 | $ 1,659 | $ 3,863 | $ 1,659 |
Restructuring Charge (Details)
Restructuring Charge (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | $ 1,272 | $ 4,139 | $ 0 | $ 0 | ||
Restructuring charges | 1,770 | 2,155 | 6,873 | $ 0 | 10,798 | $ 0 |
Cash disbursements | (822) | (4,105) | (1,380) | |||
Non-cash charges | (1,508) | (917) | (1,354) | |||
Ending balance | 712 | 1,272 | 4,139 | 712 | ||
Improved growth and profitability plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs incurred | 2,155 | |||||
Cost recovery adjustment | 112 | |||||
Aligning workforce and facility requirements | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs incurred | 1,882 | |||||
Restructuring costs expected to be incurred | 1,000 | 1,000 | ||||
Employee Severance and Related Benefits | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 920 | 2,370 | 0 | 0 | ||
Restructuring charges | (1) | (247) | 3,513 | |||
Cash disbursements | (357) | (1,203) | (1,143) | |||
Non-cash charges | (9) | 0 | 0 | |||
Ending balance | 553 | 920 | 2,370 | 553 | ||
Share-Based Compensation | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | 0 | ||
Restructuring charges | (236) | 917 | 1,354 | |||
Cash disbursements | 0 | 0 | ||||
Non-cash charges | 383 | (917) | (1,354) | |||
Ending balance | 147 | 0 | 0 | 147 | ||
Facilities Related Charges | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | 0 | ||
Restructuring charges | 1,882 | 0 | ||||
Cash disbursements | 0 | 0 | ||||
Non-cash charges | (1,882) | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | 0 | ||
Professional Fees and Other | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 352 | 1,769 | 0 | 0 | ||
Restructuring charges | 125 | 1,485 | 2,006 | |||
Cash disbursements | (465) | (2,902) | (237) | |||
Non-cash charges | 0 | 0 | 0 | |||
Ending balance | $ 12 | $ 352 | $ 1,769 | $ 12 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (10,105) | $ (3,985) | $ (49,332) | $ (10,968) |
Basic weighted average outstanding shares of common stock | 126,791 | 122,363 | 125,710 | 120,519 |
Dilutive effect of stock options, restricted stock units, and other equity incentive plans (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average outstanding shares of common stock | 126,791 | 122,363 | 125,710 | 120,519 |
Basic net loss per share (in dollars per share) | $ (0.08) | $ (0.03) | $ (0.39) | $ (0.09) |
Diluted net loss per share (in dollars per share) | $ (0.08) | $ (0.03) | $ (0.39) | $ (0.09) |
Net Loss per Share - Dilutive C
Net Loss per Share - Dilutive Common Stock (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 27,732 | 23,411 | 29,521 | 23,226 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 314 | 187 | 314 | 187 |
Stock options and warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 1,243 | 6,676 | 2,574 | 6,401 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 11,521 | 1,894 | 11,979 | 1,984 |
Convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 14,654 | 14,654 | 14,654 | 14,654 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 14, 2017 | Jun. 30, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Issuance of common stock under employee stock purchase plan | $ 913 | $ 1,074 | |||||
Issuance of preferred stock authorized (in shares) | 7,500,000 | 7,500,000 | 7,500,000 | ||||
Employee Stock Purchase Plan | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Number of shares authorized for issuance | 9,000,000 | 4,000,000 | |||||
Increase in shares available for issuance | 5,000,000 | ||||||
Maximum number of shares permitted to purchase per period | 5,000 | ||||||
Discount from market price for employees | 15.00% | ||||||
Issuance of common stock under employee stock purchase plan, shares | 0 | 355,000 | |||||
Issuance of common stock under employee stock purchase plan | $ 913 | ||||||
Common stock reserved for future options and restricted stock awards (in shares) | 3,330,000 | 3,330,000 | |||||
Employee funds held by company for future purchase of shares | $ 631 | $ 631 | |||||
2007 Equity Incentive Plan | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Number of shares authorized for issuance | 12,912,000 | 12,912,000 | |||||
2017 Share Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase amount authorized | $ 25,000 | ||||||
Shares purchased and canceled | 0 | 0 | |||||
Remaining authorized repurchase amount | $ 21,200 | $ 21,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 130,884 | $ 169,815 | $ 175,192 | $ 166,537 |
Other comprehensive loss before reclassifications | (980) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) | (526) | 652 | (980) | (169) |
Ending balance | 141,323 | 177,679 | 141,323 | 177,679 |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (7,965) | (10,031) | (7,511) | (9,210) |
Ending balance | (8,491) | $ (9,379) | (8,491) | $ (9,379) |
Foreign Currency | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (7,460) | |||
Other comprehensive loss before reclassifications | (1,012) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) | (1,012) | |||
Ending balance | (8,472) | (8,472) | ||
Available for Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (51) | |||
Other comprehensive loss before reclassifications | 32 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) | 32 | |||
Ending balance | $ (19) | $ (19) |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of share-based compensation expense | ||||
Total share-based compensation expense | $ 3,657 | $ 1,923 | $ 16,477 | $ 12,238 |
Cost of services | ||||
Components of share-based compensation expense | ||||
Total share-based compensation expense | 438 | 130 | 1,142 | 1,685 |
General and administrative expense | ||||
Components of share-based compensation expense | ||||
Total share-based compensation expense | 2,301 | 1,272 | 10,203 | 5,770 |
Sales and marketing expense | ||||
Components of share-based compensation expense | ||||
Total share-based compensation expense | 640 | 206 | 1,598 | 2,756 |
Research and development expense | ||||
Components of share-based compensation expense | ||||
Total share-based compensation expense | 662 | 315 | 1,647 | 2,027 |
Restructuring charge | ||||
Components of share-based compensation expense | ||||
Total share-based compensation expense | (384) | 0 | 1,887 | 0 |
Stock options and warrants | ||||
Components of share-based compensation expense | ||||
Total share-based compensation expense | 144 | 1,024 | 7,395 | 3,143 |
Restricted stock units | ||||
Components of share-based compensation expense | ||||
Total share-based compensation expense | 3,300 | 713 | 8,579 | 8,413 |
ESPP | ||||
Components of share-based compensation expense | ||||
Total share-based compensation expense | $ 213 | $ 186 | $ 503 | $ 682 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) | Jul. 28, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)participant | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation expense total | $ 42,652,000 | ||||
Share-based compensation expense, remainder of year | 5,458,000 | ||||
Share-based compensation expense, 2022 | 18,141,000 | ||||
Class of warrants outstanding (in shares) | shares | 2 | ||||
Share-based compensation expense | 16,477,000 | $ 12,238,000 | |||
Warrants outstanding | 82,850 | ||||
Options granted (in shares) | shares | 818 | ||||
Plan modification, number of individuals impacted | participant | 4 | ||||
Plan modification, incremental expense | $ 4,310,000 | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options, exercise price (in dollars per share) | $ / shares | $ 0.38 | ||||
Plan modification, exercise extension | 6 months | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options, exercise price (in dollars per share) | $ / shares | $ 0.58 | ||||
Plan modification, exercise extension | 2 years | ||||
Warrant, consulting firm, one | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Securities called by each warrant (in shares) | shares | 441,867 | ||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 0.01 | ||||
Warrant, consulting firm, two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Securities called by each warrant (in shares) | shares | 662,800 | ||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 3.72 | ||||
General and administrative expense | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan modification, incremental expense | $ 3,194,000 | ||||
Restructuring charge | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan modification, incremental expense | $ 1,116,000 | ||||
Stock options and warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation expense total | 5,692,000 | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation expense total | $ 36,960,000 | ||||
Value outstanding | $ 30,000,000 | ||||
Units outstanding (in shares) | shares | 11,198 | ||||
Restricted stock units | Time based vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value outstanding | $ 10,000,000 | ||||
Restricted stock units | Performance based vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value outstanding | $ 20,000,000 | ||||
Award vesting period | 28 months | ||||
Restricted stock units | Minimum | Time based vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 36 months | ||||
Restricted stock units | Maximum | Time based vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 48 months | ||||
Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 917,000 | ||||
Warrants | Warrant, consulting firm, one | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accelerated vesting (in shares) | shares | 55,233 | 55,233 | |||
Warrants | Warrant, consulting firm, two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accelerated vesting (in shares) | shares | 82,850 |
Operating Leases - Right of U_3
Operating Leases - Right of Use Assets and Purchase Commitments - Right of Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Operating Leased Assets [Line Items] | |||||
Right-of-use assets | $ 7,683 | $ 7,683 | $ 10,150 | ||
Operating lease liability obligations | 1,966 | 1,966 | 2,465 | ||
Operating lease liability obligations, less current portion | 10,045 | 10,045 | $ 11,265 | ||
Total lease liability obligations | $ 12,011 | $ 12,011 | |||
Weighted-average remaining lease term | 7 years 10 months 24 days | 7 years 10 months 24 days | |||
Weighted-average discount rate | 5.05% | 5.05% | |||
Operating lease costs | $ 398 | $ 752 | $ 1,827 | $ 2,350 | |
Operating cash flows from operating leases | 754 | 473 | 2,317 | 1,438 | |
Cost of Revenue | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease costs | 97 | 111 | 340 | 360 | |
Operating Expenses | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease costs | $ 301 | $ 641 | $ 1,487 | $ 1,990 |
Operating Leases - Right of U_4
Operating Leases - Right of Use Assets and Purchase Commitments - Future Minimum Lease Payments Over Remaining Lease Periods (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Future minimum lease payments over remaining lease periods | |
Remainder of 2021 | $ 678 |
2022 | 2,391 |
2023 | 1,811 |
2024 | 1,441 |
2025 | 1,440 |
Thereafter | 6,829 |
Total minimum payments | 14,590 |
Less: amount representing interest | 2,579 |
Total | $ 12,011 |
Operating Leases - Right of U_5
Operating Leases - Right of Use Assets and Purchase Commitments - Minimum Purchase Commitments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Minimum purchase commitments | |
Remainder of 2021 | $ 18,911 |
2022 | 39,027 |
2023 | 17,941 |
2024 | 8,960 |
2025 | 5,993 |
Thereafter | 3,372 |
Total minimum payments | $ 94,204 |
Concentrations (Details)
Concentrations (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)customercountry | Sep. 30, 2020USD ($)countrycustomer | Sep. 30, 2021USD ($)customercountry | Sep. 30, 2020USD ($)countrycustomer | |
Concentration Risk [Line Items] | ||||
Revenue | $ 55,202 | $ 59,243 | $ 154,745 | $ 174,801 |
Customer concentration | Sales revenue | ||||
Concentration Risk [Line Items] | ||||
Number of customers who represented 10% or more of total revenue | customer | 2 | 1 | 2 | 2 |
Customer concentration | Sales revenue | Amazon and Sony | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | |
Customer concentration | Sales revenue | Amazon | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Geographic concentration | Sales revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Number of countries accounting for 10% or more of revenue | country | 2 | 3 | 2 | 3 |
United States / Americas | Geographic concentration | Sales revenue | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 33,405 | $ 38,075 | $ 90,576 | $ 107,698 |
United States and Japan | Geographic concentration | Sales revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
United States, Japan, and the United Kingdom | Geographic concentration | Sales revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 211 | $ 66 | $ 718 | $ 377 |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Areas - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021locationsegment | |
Segment Reporting [Abstract] | |
Number of industry segment | segment | 1 |
Number of geographic areas | location | 3 |
Segment Reporting and Geograp_4
Segment Reporting and Geographic Areas - Revenue Earned by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 55,202 | $ 59,243 | $ 154,745 | $ 174,801 |
Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 34,065 | 38,594 | 92,432 | 109,652 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 6,427 | 8,590 | 20,986 | 27,411 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 14,710 | $ 12,059 | $ 41,327 | $ 37,738 |
Sales revenue | Geographic concentration | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percent of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Sales revenue | Geographic concentration | Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percent of revenue | 62.00% | 65.00% | 60.00% | 63.00% |
Sales revenue | Geographic concentration | EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percent of revenue | 12.00% | 15.00% | 14.00% | 16.00% |
Sales revenue | Geographic concentration | Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percent of revenue | 26.00% | 20.00% | 26.00% | 21.00% |
Segment Reporting and Geograp_5
Segment Reporting and Geographic Areas - Schedule of Concentration of Revenue by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 55,202 | $ 59,243 | $ 154,745 | $ 174,801 |
Geographic concentration | Sales revenue | United States / Americas | ||||
Concentration Risk [Line Items] | ||||
Revenue | 33,405 | 38,075 | 90,576 | 107,698 |
Geographic concentration | Sales revenue | United Kingdom / EMEA | ||||
Concentration Risk [Line Items] | ||||
Revenue | 2,675 | 6,939 | 13,031 | 22,016 |
Geographic concentration | Sales revenue | Japan / Asia Pacific | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 7,925 | $ 7,703 | $ 23,584 | $ 24,251 |
Segment Reporting and Geograp_6
Segment Reporting and Geographic Areas - Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Long-lived assets by geographical area | ||
Total long-lived assets | $ 36,392 | $ 46,418 |
Americas | ||
Long-lived assets by geographical area | ||
Total long-lived assets | 25,764 | 32,626 |
International | ||
Long-lived assets by geographical area | ||
Total long-lived assets | $ 10,628 | $ 13,792 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | $ 44,769 | $ 89,338 |
Money market funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 8,528 | 12,370 |
Certificate of deposit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 1,915 | 551 |
Corporate notes and bonds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 14,771 | 45,385 |
Municipal securities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 19,555 | 31,032 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 8,528 | 12,370 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 8,528 | 12,370 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Certificate of deposit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Corporate notes and bonds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 36,241 | 76,968 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Certificate of deposit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 1,915 | 551 |
Significant Other Observable Inputs (Level 2) | Corporate notes and bonds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 14,771 | 45,385 |
Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 19,555 | 31,032 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Certificate of deposit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate notes and bonds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | $ 0 | $ 0 |