Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33554 | |
Entity Registrant Name | PROS HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 76-0168604 | |
Entity Address, Address Line One | 3200 Kirby Drive, Suite 600 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77098 | |
City Area Code | (713) | |
Local Phone Number | 335-5151 | |
Title of 12(b) Security | Common stock $0.001 par value per share | |
Trading Symbol | PRO | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0001392972 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,044,260 | |
Former Address [Member] | ||
Entity Information [Line Items] | ||
Entity Address, Address Line One | ||
Entity Address, City or Town | ||
Entity Address, State or Province | ||
Entity Address, Postal Zip Code |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 192,376 | $ 203,627 |
Trade and Other Receivables, Net, Current | 45,787 | 48,178 |
Deferred Costs, Current | 6,433 | 6,032 |
Prepaid and other current assets | 12,149 | 9,441 |
Total current assets | 256,745 | 267,278 |
Property and equipment, net | 25,442 | 25,012 |
Operating Lease, Right-of-Use Asset | 14,797 | 17,474 |
Deferred Costs, Noncurrent | 7,938 | 8,764 |
Intangible Assets, Net (Excluding Goodwill) | 16,046 | 17,851 |
Goodwill | 107,717 | 107,561 |
Other long term assets, net | 8,872 | 9,012 |
Total assets | 437,557 | 452,952 |
Current liabilities: | ||
Accounts payable | 4,197 | 7,964 |
Accrued liabilities | 13,356 | 12,854 |
Accrued payroll and other employee benefits | 15,624 | 23,797 |
Operating Lease, Liability, Current | 5,461 | 7,662 |
Deferred Revenue, Current | 122,192 | 108,659 |
Total current liabilities | 160,830 | 160,936 |
Long-term deferred revenue | 6,161 | 8,298 |
Convertible Debt, Noncurrent | 290,152 | 289,779 |
Operating Lease, Liability, Noncurrent | 27,135 | 28,184 |
Other Liabilities, Noncurrent | 1,247 | 1,228 |
Total liabilities | 485,525 | 488,425 |
Commitments and contingencies (see Note 9) | ||
Stockholders' equity: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 51 | 50 |
Additional paid-in capital | 596,805 | 590,475 |
Treasury Stock, Value | (29,847) | (29,847) |
Retained Earnings (Accumulated Deficit) | (609,900) | (590,898) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,077) | (5,253) |
Total stockholders' equity | (47,968) | (35,473) |
Total liabilities and stockholders' equity | $ 437,557 | $ 452,952 |
Preferred stock - shares authorized | 5,000,000 | 5,000,000 |
Preferred stock - par value | $ 0.001 | $ 0.001 |
Preferred stock - shares issued | 0 | 0 |
Common stock - shares authorized | 75,000,000 | 75,000,000 |
Common stock - par value | $ 0.001 | $ 0.001 |
Treasury Stock, Common, Shares | 4,680,723 | 4,680,723 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Allowance for bad debts | $ 722,000 | $ 609,000 |
Preferred stock - par value | $ 0.001 | $ 0.001 |
Preferred stock - shares authorized | 5,000,000 | 5,000,000 |
Preferred stock - shares issued | 0 | 0 |
Common stock - par value | $ 0.001 | $ 0.001 |
Common stock - shares authorized | 75,000,000 | 75,000,000 |
Common stock - shares issued | 50,711,964 | 50,318,726 |
Common stock - shares outstanding | 46,031,241 | 45,638,003 |
Treasury Stock, Common, Shares | 4,680,723 | 4,680,723 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 73,182 | $ 66,492 |
Cost of Goods and Services Sold | 29,542 | 27,361 |
Gross Profit | 43,640 | 39,131 |
Operating Expenses | ||
Selling and Marketing Expense | 26,010 | 25,287 |
Research and development | 22,291 | 24,467 |
General and Administrative Expense | 14,135 | 14,329 |
Asset Impairment Charges | 0 | 1,551 |
Income from operations | (18,796) | (26,503) |
Other income (expense): | ||
Convertible debt interest and amortization | (1,576) | (1,576) |
Other Nonoperating Income (Expense) | 1,451 | (418) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | (18,921) | (28,497) |
Income tax provision (benefit) | 81 | 143 |
Net income (loss) | $ (19,002) | $ (28,640) |
Income (Loss) from Continuing Operations, Basic and Diluted | $ (0.41) | $ (0.64) |
Weighted average number of shares: | ||
Weighted Average Number of Shares Outstanding, Basic | 45,926 | 45,085 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 45,926 | 45,085 |
Other comprehensive income, net of tax: | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ 176 | $ (222) |
Other comprehensive income | 176 | (222) |
Comprehensive income (loss) | (18,826) | (28,862) |
Accumulated Other Comprehensive Income, net of tax [Member] | ||
Other comprehensive income, net of tax: | ||
Other comprehensive income | 176 | (222) |
Subscription, maintenance and support | ||
Revenue from Contract with Customer, Including Assessed Tax | 61,681 | 56,620 |
Cost of Goods and Services Sold | 16,375 | 15,946 |
Subscription and Circulation [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 55,969 | 48,765 |
Cost of Goods and Services Sold | 14,093 | 13,779 |
Maintenance [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 5,712 | 7,855 |
Cost of Goods and Services Sold | 2,282 | 2,167 |
Service [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 11,501 | 9,872 |
Cost of Goods and Services Sold | $ 13,167 | $ 11,415 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net income (loss) | $ (19,002) | $ (28,640) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, Depletion and Amortization | 3,001 | 4,647 |
Amortization of Financing Costs and Discounts | 373 | 373 |
Share-based compensation | 9,904 | 11,225 |
Provision for doubtful accounts | 108 | (91) |
Loss on Disposition of Other Assets | 35 | 0 |
Asset Impairment Charges | 0 | 1,551 |
Changes in operating assets and liabilities: | ||
Accounts and unbilled receivables | 2,239 | (12,130) |
Increase (Decrease) in Deferred Costs | 425 | (48) |
Prepaid expenses and other assets | (2,505) | (262) |
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net | (591) | (739) |
Accounts payable | (3,793) | 3,903 |
Accrued liabilities | 504 | (109) |
Accrued payroll and other employee benefits | (8,174) | (13,246) |
Deferred revenue | 11,333 | 22,552 |
Net cash provided by (used in) operating activities | (6,143) | (11,014) |
Investing activities: | ||
Purchases of property and equipment | (1,546) | (461) |
Net cash provided by (used in) investing activities | (1,546) | (461) |
Financing activities: | ||
Proceeds from Stock Plans | 1,137 | 1,443 |
Tax withholding related to net share settlement of restricted stock units | (4,710) | (212) |
Net cash provided by (used in) financing activities | (3,573) | 1,231 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | 11 | 84 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (11,251) | (10,160) |
Cash and cash equivalents: | ||
Beginning of period | 203,627 | 227,553 |
End of period | 192,376 | 217,393 |
Capital Expenditures Incurred but Not yet Paid | $ 136 | $ 45 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income, net of tax [Member] |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2021 | 44,520,542 | |||||
Stockholders' Equity Attributable to Parent- Beginning Balance at Dec. 31, 2021 | $ 3,584 | $ 49 | $ 546,693 | $ (29,847) | $ (508,652) | $ (4,659) |
Treasury Stock, Common, Shares, Beginning Balance at Dec. 31, 2021 | 4,680,723 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 609,397 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (212) | $ 1 | (213) | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 49,245 | |||||
Proceeds from Stock Plans | 1,443 | 1,443 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 11,225 | 11,225 | ||||
Other Comprehensive Income (Loss), Net of Tax | (222) | (222) | ||||
Net Income (Loss) Attributable to Parent | (28,640) | (28,640) | ||||
Stockholders' Equity Attributable to Parent- Ending Balance at Mar. 31, 2022 | $ (12,822) | $ 50 | 559,148 | $ (29,847) | (537,292) | (4,881) |
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2022 | 45,179,184 | |||||
Treasury Stock, Common, Shares, Ending Balance at Mar. 31, 2022 | 4,680,723 | |||||
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2022 | 45,638,003 | 45,638,003 | ||||
Stockholders' Equity Attributable to Parent- Beginning Balance at Dec. 31, 2022 | $ (35,473) | $ 50 | 590,475 | $ (29,847) | (590,898) | (5,253) |
Treasury Stock, Common, Shares, Beginning Balance at Dec. 31, 2022 | 4,680,723 | 4,680,723 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 338,089 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ (4,710) | $ 1 | (4,711) | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 55,149 | 55,149 | ||||
Proceeds from Stock Plans | $ 1,137 | 1,137 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 9,904 | 9,904 | ||||
Other Comprehensive Income (Loss), Net of Tax | 176 | 176 | ||||
Net Income (Loss) Attributable to Parent | (19,002) | (19,002) | ||||
Stockholders' Equity Attributable to Parent- Ending Balance at Mar. 31, 2023 | $ (47,968) | $ 51 | $ 596,805 | $ (29,847) | $ (609,900) | $ (5,077) |
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2023 | 46,031,241 | 46,031,241 | ||||
Treasury Stock, Common, Shares, Ending Balance at Mar. 31, 2023 | 4,680,723 | 4,680,723 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2023 | |
Organization and Nature of Operations [Abstract] | |
Organization and nature of operations | Organization and Nature of Operations PROS Holdings, Inc., a Delaware corporation, through its operating subsidiaries (collectively, the "Company"), provides solutions that optimize shopping and selling experiences. PROS solutions leverage artificial intelligence ("AI"), self-learning and automation to ensure that every transactional experience is fast, frictionless and personalized for every shopper, supporting both business-to-business ("B2B") and business-to-consumer ("B2C") companies across industry verticals. Companies can use these selling, pricing, revenue optimization, distribution and retail, and digital offer marketing solutions to assess their market environments in real time to deliver customized prices and offers. The Company's solutions enable their customers to provide the buyers of their products the ability to move fluidly from one sales channel to another, whether direct, partner, online, mobile or other emerging channels, each with a personalized experience regardless of which channel is used. The Company's decades of data science and AI expertise are infused into its solutions and are designed to reduce time and complexity through actionable intelligence. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission ("SEC"). In management's opinion, the accompanying interim unaudited condensed consolidated financial statements include all adjustments necessary for a fair statement of the financial position of the Company as of March 31, 2023, the results of operations for the three months ended March 31, 2023 and 2022, cash flows for the three months ended March 31, 2023 and 2022, and stockholders' (deficit) equity for the three months ended March 31, 2023 and 2022. Certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 ("Annual Report") filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2022 was derived from the Company's audited consolidated financial statements but does not include all disclosures required under GAAP. Changes in accounting policies There have been no material changes in the Company’s significant accounting policies and their application as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 . Fair value measurement The Company's financial assets that are included in cash and cash equivalents and that are measured at fair value on a recurring basis consisted of $176.5 million and $168.1 million at March 31, 2023 and December 31, 2022, respectively, and were invested in treasury money market funds. The fair value of the treasury money market funds is determined based on quoted market prices, which represents level 1 in the fair value hierarchy as defined by ASC 820. Trade and other receivables Trade and other receivables are primarily comprised of trade receivables, net of allowance for credit losses, contract assets and unbilled receivables. The Company records trade accounts receivable for its unconditional rights to consideration arising from the Company's performance under contracts with customers. The Company's standard billing terms are that payment is due upon receipt of invoice, payable generally within thirty to sixty days. The carrying value of such receivables, net of the allowance for credit losses, represents their estimated net realizable value. When developing its estimate of expected credit losses on trade and other receivables, the Company considers the available information relevant to assessing the collectability of cash flows, which includes a combination of both internal and external information relating to past events, current conditions, and future forecasts as well as relevant qualitative and quantitative factors that relate to the environment in which the Company operates. Contract assets represent conditional rights to consideration that have been recognized as revenue in advance of billing the customer. Unbilled receivables represent unconditional rights to consideration arising from revenue that have been recognized in advance of billing the customer. Deferred costs Sales commissions earned by the Company's sales representatives are considered incremental and recoverable costs of obtaining a customer contract. Sales commissions are deferred and amortized on a straight-line basis over the period of benefit, which the Company has determined to be five to eight years. The Company determined the period of benefit by taking into consideration its customer contracts, expected renewals of those customer contracts (as the Company currently does not pay an incremental sales commission for renewals), the Company's technology and other factors. The Company also defers amounts earned by employees other than sales representatives who earn incentive payments under compensation plans also tied to the value of customer contracts acquired. Deferred costs were $14.4 million and $14.8 million as of March 31, 2023 and December 31, 2022, respectively. Amortization expense for the deferred costs was $1.5 million and $1.4 million for the three months ended March 31, 2023 and 2022, respectively. Amortization of deferred costs is included in selling and marketing expense in the accompanying unaudited condensed consolidated statements of comprehensive loss. Deferred implementation costs The Company capitalizes certain contract fulfillment costs, including personnel and other costs (such as hosting, employee salaries, benefits and payroll taxes), that are associated with arrangements where professional services are not distinct from other undelivered performance obligations in its customer contracts. The Company analyzes implementation costs and capitalizes those costs that are directly related to customer contracts expected to be recoverable to satisfy the undelivered performance obligations in those contracts. Deferred implementation costs are amortized ratably over the remaining contract term once the revenue recognition criteria for the respective performance obligation has been met and revenue recognition commences. Deferred implementation costs were $1.5 million and $1.6 million as of March 31, 2023 and December 31, 2022, respectively. Amortization expense for the deferred implementation costs was $0.2 million and $0.3 million for the three months ended March 31, 2023 and 2022, respectively. Deferred implementation costs are included in prepaid and other current assets and other assets, noncurrent in the unaudited condensed consolidated balance sheets. Amortization of deferred implementation costs is included in cost of subscription and cost of services revenues in the accompanying unaudited condensed consolidated statements of comprehensive loss. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever an event or change in circumstances indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review includes comparison of future cash flows expected to be generated by the asset or group of assets with the associated assets’ carrying value. If the carrying value of the asset or group of assets exceeds its expected future cash flows (undiscounted and without interest charges), an impairment loss is recognized to the extent that the carrying amount of the asset exceeds its fair value. During the three months ended March 31, 2023 and 2022, the Company recorded zero and $1.6 million, respectively, of impairment charge related to fixed assets. The 2022 impairment resulted from the Company's changed intentions for these assets in connection with a new agreement with a software vendor. Recently issued accounting pronouncements not yet adopted There have been no recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 31, 2023, as compared to the recent accounting pronouncements described in the Company's Annual Report, that are of significance or potential significance to the Company. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligation (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Revenue and Performance Obligation [Abstract] | |
Deferred revenue and performance obligation [Text Block] | Deferred Revenue and Performance Obligations Deferred Revenue For the three months ended March 31, 2023 and 2022, the Company recognized approximately $49.4 million and $44.3 million, respectively, of revenue that was included in the deferred revenue balances at the beginning of the respective periods and primarily related to subscription, maintenance and support, and services. Performance Obligations As of March 31, 2023, the Company expects to recognize approximately $430.6 million of revenue from remaining performance obligations. The Company expects, based on the terms of the related, underlying contractual arrangements, to recognize revenue on approximately $210.0 million of these performance obligations over the next 12 months, with the balance recognized thereafte r. R emaining performance obligations represent contractually committed revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. |
Disaggregation of Revenue (Note
Disaggregation of Revenue (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue [Text Block] | Disaggregation of Revenue Revenue by Geography The geographic information in the table below is presented for the three months ended March 31, 2023 and 2022. The Company categorizes geographic revenues based on the location of the customer's headquarters. Because the Company's contracts are predominately denominated in U.S. dollars, it has limited exposure to foreign currency exchange risk as discussed under " Foreign Currency Exchange Risk " of Part I, Item 3 below. Three Months Ended March 31, 2023 2022 (in thousands) Revenue Percent Revenue Percent United States of America $ 26,232 36 % $ 23,194 35 % Europe 22,949 31 % 20,823 31 % The rest of the world 24,001 33 % 22,475 34 % Total revenue $ 73,182 100 % $ 66,492 100 % |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases The Company has operating leases for data centers, computer infrastructure, corporate offices and certain equipment. These leases have remaining lease terms ranging from 1 year to 10 years . Some of these leases include options to extend for up to 15 years, and some include options to terminate within 1 year. As of March 31, 2023, the Company did not have any finance leases. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2023 2022 Cash paid for operating lease liabilities $ 2,251 $ 1,842 Right-of-use asset obtained in exchange for operating lease liability $ — $ — In January 2023 and 2022, an existing operating lease was modified due to a change in future payments. The result of the 2023 modification was a decrease in the related right-of-use asset and corresponding lease liability of $1 million and the result of the 2022 modification was a decrease in the related right-of-use asset and corresponding lease liability of $2.7 million. As of March 31, 2023, maturities of lease liabilities were as follows (in thousands): Year Ending December 31, Amount Remaining 2023 $ 6,649 2024 4,869 2025 4,057 2026 4,039 2027 3,965 2028 4,029 Thereafter 19,223 Total operating lease payments 46,831 Less: Imputed interest (14,235) Total operating lease liabilities $ 32,596 |
Earnings per Share (Note)
Earnings per Share (Note) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Numerator: Net loss $ (19,002) $ (28,640) Denominator: Weighted average shares (basic) 45,926 45,085 Dilutive effect of potential common shares — — Weighted average shares (diluted) 45,926 45,085 Basic loss per share $ (0.41) $ (0.64) Diluted loss per share $ (0.41) $ (0.64) Dilutive potential common shares consist of shares issuable upon the vesting of restricted stock units ("RSUs"), market stock units ("MSUs") and equity consideration related to the EveryMundo LLC acquisition. Potential common shares determined to be antidilutive and excluded from diluted weighted average shares outstanding were approximately 2.4 million and 2.2 million for the three months ended March 31, 2023 and 2022, respectively. In addition, potential common shares related to the convertible notes determined to be antidilutive and excluded from diluted weighted average shares outstanding were 5.8 million for both the three months ended March 31, 2023 and 2022. |
Noncash Share-based Compensatio
Noncash Share-based Compensation (Note) | 3 Months Ended |
Mar. 31, 2023 | |
Noncash Share-based Compensation [Abstract] | |
Noncash Share-based Compensation | Noncash Share-based Compensation The Company's 2017 Equity Incentive Plan (as amended and restated, the "2017 Stock Plan") has an aggregate authorized limit of 7,650,000 shares for issuance. As of March 31, 2023, 1,344,949 shares remain available for issuance under the 2017 Stock Plan. The following table presents the number of shares or units outstanding for each award type as of March 31, 2023 and December 31, 2022, respectively, (in thousands): Award type March 31, 2023 December 31, 2022 Restricted stock units (time-based) 3,209 2,235 Market stock units 358 216 EveryMundo equity consideration 137 137 During the three months ended March 31, 2023, the Company granted 1,547,607 RSUs (time-based) with a weighted average grant-date fair value of $25.59 per share. The Company also granted 142,386 MSUs with a weighted average grant-date fair value of $30.42 to certain executive employees during the three months ended March 31, 2023. These MSUs vest on January 31, 2026 and the actual number of MSUs that will be eligible to vest is based on the total stockholder return of the Company relative to the total stockholder return of the Index over the performance period, as defined by each award's plan documents or individual award agreements. The maximum number of shares issuable upon vesting is 200% of the MSUs initially granted. The assumptions use d to value the MSUs granted during the three months ended March 31, 2023 were as follows: Three Months Ended March 31, 2023 Volatility 63.26 % Risk-free interest rate 3.76 % Expected award life in years 2.97 Dividend yield — % Share-based compensation expense is allocated to expense categories on the unaudited condensed consolidated statements of comprehensive loss. The following table summarizes share-based compensation expense included in the Company's unaudited condensed consolidated statements of comprehensive loss for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Share-based compensation: Cost of revenue $ 832 $ 825 Operating expenses: Selling and marketing 2,928 3,240 Research and development 2,350 3,713 General and administrative 3,794 3,447 Total included in operating expenses 9,072 10,400 Total share-based compensation expense $ 9,904 $ 11,225 At March 31, 2023, the Company had an estimated $100.7 million of total unrecognized compensation costs related to share-based compensation arrangements. These costs will be recognized over a weighted average period o f 3.0 years. The Company's Employee Stock Purchase Plan (as amended, the "ESPP") permits eligible employees to purchase Company shares on an after-tax basis in an amount between 1% and 10% of their annual pay: (i) on June 30 of each year at a 15% discount of the fair market value of the Company's common stock on January 1 or June 30, whichever is lower, and (ii) on Dec ember 31 of each year at a 15% discount of the fair market value of the Company's common stock on July 1 or December 31, whichever is lower. An employee may not purchase more than $5,000 in either of the six-month measurement periods described above or more than $10,000 annually. In May 2021, the Company's stockholders approved an amendment to the ESPP Plan increasing the aggregate amount of shares available for issuance under the ESPP to 1,000,000. During the three months ended March 31, 2023, the Company issued 55,149 shares under the ESPP. As of March 31, 2023, 331,976 shares remain authorized and available for issuance under the ESPP. As of March 31, 2023, the Company held approximately $0.7 million on behalf of employees for future purchases under the ESPP, and this amount was recorded in accrued payroll and other employee benefits in the Company's unaudited condensed consolidated balance sheet. |
Convertible debt (Notes)
Convertible debt (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | Convertible Senior Notes The following is a summary of the Company's convertible senior notes as of March 31, 2023 (in thousands): Date of Issuance Unpaid Principal Balance Net Carrying Amount Contractual Interest Rates Current Noncurrent 1% Convertible Notes due in 2024 ("2024 Notes") May 2019 $ 143,750 $ — $ 142,779 1% 2.25% Convertible Notes due in 2027 ("2027 Notes") September 2020 $ 150,000 $ — $ 147,373 2.25% The 2027 and 2024 Notes (collectively, the "Notes") are general unsecured obligations and rank senior in right of payment to all of the Company's indebtedness that is expressly subordinated in right of payment to the Notes, rank equally in right of payment with all of the Company's existing and future liabilities that are not so subordinated, are effectively junior to any of the Company's secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities of the Company's subsidiaries (including trade payables but excluding intercompany obligations owed to the Company or its subsidiaries). Interest related to the 2027 Notes is payable semiannually in arrears in cash on March 15 and September 15 of each year, beginning on March 15, 2021. Interest related to the 2024 Notes is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2019. The 2027 Notes mature on September 15, 2027 and the 2024 Notes mature on May 15, 2024, unless redeemed or converted in accordance with their terms prior to such date. At March 31, 2023, the Company had $192.4 million of cash and cash equivalents. The Company believes its existing cash and cash equivalents will provide adequate liquidity and capital resources to meet its operational requirements, anticipated capital expenditures and coupon interest payments for the Notes for the next twelve months. Capital markets have tightened recently in response to the macroeconomic environment making new financing more difficult and/or expensive and the Company may not be able to obtain such financing on terms acceptable to it or at all. Each $1,000 of principal of the 2027 Notes will initially be convertible into 23.9137 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $41.82 per share. Each $1,000 of principal of the 2024 Notes will initially be convertible into 15.1394 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $66.05 per share. The initial conversion price for the 2027 and the 2024 Notes is subject to adjustment upon the occurrence of certain specified events. As of March 31, 2023, the 2027 and 2024 Notes are not yet convertible and their remaining term is approximately 53 months and 13 months, respectively. As of March 31, 2023 and December 31, 2022, the fair value of the principal amount of the Notes in the aggregate was $277.3 million and $263.7 million, respectively. The estimated fair value was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including the Company's stock price and interest rates, which represents level 2 in the fair value hierarchy. The Notes consist of the following (in thousands): March 31, 2023 December 31, 2022 Principal $ 293,750 $ 293,750 Less: debt issuance cost, net of amortization (3,598) (3,971) Net carrying amount $ 290,152 $ 289,779 The following table sets forth total interest expense recognized related to the Notes (in thousands): Three Months Ended March 31, 2023 2022 Coupon interest $ 1,203 $ 1,203 Amortization of debt issuance costs 373 373 Total $ 1,576 $ 1,576 Capped Call Transactions In September 2020 and in May 2019, in connection with the offering of the 2027 and 2024 Notes, respectively, the Company entered into privately negotiated capped call transactions (collectively, the "Capped Call") with certain option counterparties. The Capped Call transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock initially underlying the Notes, at a strike price that corresponds to the initial conversion price of the Notes, also subject to adjustment, and are exercisable upon conversion of the Notes. The Capped Call transactions are intended to reduce potential dilution to the Company’s common stock and/or offset any cash payments the Company will be required to make in excess of the principal amounts upon any conversion of Notes, and to effectively increase the overall conversion price of the 2027 Notes from $41.82 to $78.90 per share, and for the 2024 Notes from $66.05 to $101.62 per share. As the Capped Call transactions meet certain accounting criteria, they are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of the Capped Call was $25.3 million and $16.4 million for the 2027 and 2024 Notes, respectively, and was recorded as part of additional paid-in capital. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, the Company regularly becomes involved in contract and other negotiations and, in more limited circumstances, becomes involved in legal proceedings, claims and litigation. The outcomes of these matters are inherently unpredictable. The Company is not currently involved in any outstanding litigation that it believes, individually or in the aggregate, will have a material adverse effect on its business, financial condition, results of operations or cash flows. Purchase commitments In the ordinary course of business, the Company enters into various purchase commitments for goods and services, mainly related to infrastructure platforms, business technology software and support, and other services. In January 2023, the Company entered into a noncancelable agreement for software support services with a four-year term. The remaining purchase commitment as of March 31, 2023 was $3.5 million and the agreement expires in March 2027. T here were no other material changes outside the ordinary course of business to the noncancellable purchase commitments disclosed in the Annual Report. |
Severance and other related cos
Severance and other related costs | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Other Activities Disclosure | Severance and Other Related Costs In the quarter ended March 31, 2023, the Company made additional organizational changes and incurred approximately $3.6 million of severance, employee benefits, outplacement and related costs during the period. These costs were recorded primarily as operating expenses in the unaudited condensed consolidated statements of comprehensive loss, mainly research and development, and sales and marketing. During the quarter ended March 31, 2023 , cash payments of $3.2 million were recorded for the incurred costs. The Company expects to settle the remaining accrued expense of approximately $1.3 million during 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission ("SEC"). In management's opinion, the accompanying interim unaudited condensed consolidated financial statements include all adjustments necessary for a fair statement of the financial position of the Company as of March 31, 2023, the results of operations for the three months ended March 31, 2023 and 2022, cash flows for the three months ended March 31, 2023 and 2022, and stockholders' (deficit) equity for the three months ended March 31, 2023 and 2022. Certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 ("Annual Report") filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2022 was derived from the Company's audited consolidated financial statements but does not include all disclosures required under GAAP. |
Accounting Standards Update and Change in Accounting Principle | Changes in accounting policies There have been no material changes in the Company’s significant accounting policies and their application as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 . |
Fair value measurement | Fair value measurement The Company's financial assets that are included in cash and cash equivalents and that are measured at fair value on a recurring basis consisted of $176.5 million and $168.1 million at March 31, 2023 and December 31, 2022, respectively, and were invested in treasury money market funds. The fair value of the treasury money market funds is determined based on quoted market prices, which represents level 1 in the fair value hierarchy as defined by ASC 820. |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Trade and other receivables Trade and other receivables are primarily comprised of trade receivables, net of allowance for credit losses, contract assets and unbilled receivables. The Company records trade accounts receivable for its unconditional rights to consideration arising from the Company's performance under contracts with customers. The Company's standard billing terms are that payment is due upon receipt of invoice, payable generally within thirty to sixty days. The carrying value of such receivables, net of the allowance for credit losses, represents their estimated net realizable value. When developing its estimate of expected credit losses on trade and other receivables, the Company considers the available information relevant to assessing the collectability of cash flows, which includes a combination of both internal and external information relating to past events, current conditions, and future forecasts as well as relevant qualitative and quantitative factors that relate to the environment in which the Company operates. Contract assets represent conditional rights to consideration that have been recognized as revenue in advance of billing the customer. Unbilled receivables represent unconditional rights to consideration arising from revenue that have been recognized in advance of billing the customer. |
Revenue Recognition, Customer Acquisitions [Policy Text Block] | Deferred costs Sales commissions earned by the Company's sales representatives are considered incremental and recoverable costs of obtaining a customer contract. Sales commissions are deferred and amortized on a straight-line basis over the period of benefit, which the Company has determined to be five to eight years. The Company determined the period of benefit by taking into consideration its customer contracts, expected renewals of those customer contracts (as the Company currently does not pay an incremental sales commission for renewals), the Company's technology and other factors. The Company also defers amounts earned by employees other than sales representatives who earn incentive payments under compensation plans also tied to the value of customer contracts acquired. Deferred costs were $14.4 million and $14.8 million as of March 31, 2023 and December 31, 2022, respectively. Amortization expense for the deferred costs was $1.5 million and $1.4 million for the three months ended March 31, 2023 and 2022, respectively. Amortization of deferred costs is included in selling and marketing expense in the accompanying unaudited condensed consolidated statements of comprehensive loss. |
Deferred Charges, Policy [Policy Text Block] | Deferred implementation costs The Company capitalizes certain contract fulfillment costs, including personnel and other costs (such as hosting, employee salaries, benefits and payroll taxes), that are associated with arrangements where professional services are not distinct from other undelivered performance obligations in its customer contracts. The Company analyzes implementation costs and capitalizes those costs that are directly related to customer contracts expected to be recoverable to satisfy the undelivered performance obligations in those contracts. Deferred implementation costs are amortized ratably over the remaining contract term once the revenue recognition criteria for the respective performance obligation has been met and revenue recognition commences. Deferred implementation costs were $1.5 million and $1.6 million as of March 31, 2023 and December 31, 2022, respectively. Amortization expense for the deferred implementation costs was $0.2 million and $0.3 million for the three months ended March 31, 2023 and 2022, respectively. Deferred implementation costs are included in prepaid and other current assets and other assets, noncurrent in the unaudited condensed consolidated balance sheets. Amortization of deferred implementation costs is included in cost of subscription and cost of services revenues in the accompanying unaudited condensed consolidated statements of comprehensive loss. |
Impairment or Disposal of Long-Lived Assets, Policy | Impairment of Long-Lived AssetsLong-lived assets are reviewed for impairment whenever an event or change in circumstances indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review includes comparison of future cash flows expected to be generated by the asset or group of assets with the associated assets’ carrying value. If the carrying value of the asset or group of assets exceeds its expected future cash flows (undiscounted and without interest charges), an impairment loss is recognized to the extent that the carrying amount of the asset exceeds its fair value. During the three months ended March 31, 2023 and 2022, the Company recorded zero and $1.6 million, respectively, of impairment charge related to fixed assets. The 2022 impairment resulted from the Company's changed intentions for these assets in connection with a new agreement with a software vendor. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently issued accounting pronouncements not yet adopted There have been no recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 31, 2023, as compared to the recent accounting pronouncements described in the Company's Annual Report, that are of significance or potential significance to the Company. |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disaggregation of Revenue [Abstract] | |
Schedule of Disaggregation Of Revenue [Table Text Block] | The geographic information in the table below is presented for the three months ended March 31, 2023 and 2022. The Company categorizes geographic revenues based on the location of the customer's headquarters. Because the Company's contracts are predominately denominated in U.S. dollars, it has limited exposure to foreign currency exchange risk as discussed under " Foreign Currency Exchange Risk " of Part I, Item 3 below. Three Months Ended March 31, 2023 2022 (in thousands) Revenue Percent Revenue Percent United States of America $ 26,232 36 % $ 23,194 35 % Europe 22,949 31 % 20,823 31 % The rest of the world 24,001 33 % 22,475 34 % Total revenue $ 73,182 100 % $ 66,492 100 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Supplemental Lease Information [Table Text Block] | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2023 2022 Cash paid for operating lease liabilities $ 2,251 $ 1,842 Right-of-use asset obtained in exchange for operating lease liability $ — $ — |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of March 31, 2023, maturities of lease liabilities were as follows (in thousands): Year Ending December 31, Amount Remaining 2023 $ 6,649 2024 4,869 2025 4,057 2026 4,039 2027 3,965 2028 4,029 Thereafter 19,223 Total operating lease payments 46,831 Less: Imputed interest (14,235) Total operating lease liabilities $ 32,596 |
Earnings per Share (Table)
Earnings per Share (Table) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Numerator: Net loss $ (19,002) $ (28,640) Denominator: Weighted average shares (basic) 45,926 45,085 Dilutive effect of potential common shares — — Weighted average shares (diluted) 45,926 45,085 Basic loss per share $ (0.41) $ (0.64) Diluted loss per share $ (0.41) $ (0.64) |
Noncash Share-based Compensat_2
Noncash Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Noncash Share-based Compensation [Abstract] | |
Awards outstanding [Table Text Block] | The following table presents the number of shares or units outstanding for each award type as of March 31, 2023 and December 31, 2022, respectively, (in thousands): Award type March 31, 2023 December 31, 2022 Restricted stock units (time-based) 3,209 2,235 Market stock units 358 216 EveryMundo equity consideration 137 137 |
Schedule of Share-based Compensation Expense | The following table summarizes share-based compensation expense included in the Company's unaudited condensed consolidated statements of comprehensive loss for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Share-based compensation: Cost of revenue $ 832 $ 825 Operating expenses: Selling and marketing 2,928 3,240 Research and development 2,350 3,713 General and administrative 3,794 3,447 Total included in operating expenses 9,072 10,400 Total share-based compensation expense $ 9,904 $ 11,225 |
Market Stock Units Valuation Assumptions | The assumptions use d to value the MSUs granted during the three months ended March 31, 2023 were as follows: Three Months Ended March 31, 2023 Volatility 63.26 % Risk-free interest rate 3.76 % Expected award life in years 2.97 Dividend yield — % |
Convertible debt (Tables)
Convertible debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The following is a summary of the Company's convertible senior notes as of March 31, 2023 (in thousands): Date of Issuance Unpaid Principal Balance Net Carrying Amount Contractual Interest Rates Current Noncurrent 1% Convertible Notes due in 2024 ("2024 Notes") May 2019 $ 143,750 $ — $ 142,779 1% 2.25% Convertible Notes due in 2027 ("2027 Notes") September 2020 $ 150,000 $ — $ 147,373 2.25% |
Convertible Debt [Table Text Block] | The Notes consist of the following (in thousands): March 31, 2023 December 31, 2022 Principal $ 293,750 $ 293,750 Less: debt issuance cost, net of amortization (3,598) (3,971) Net carrying amount $ 290,152 $ 289,779 The following table sets forth total interest expense recognized related to the Notes (in thousands): Three Months Ended March 31, 2023 2022 Coupon interest $ 1,203 $ 1,203 Amortization of debt issuance costs 373 373 Total $ 1,576 $ 1,576 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||
Treasury money market funds, at fair value | $ 176,500 | $ 168,100 | |
Deferred Costs | 14,400 | 14,800 | |
Amortization of Deferred Charges | 1,500 | $ 1,400 | |
Capitalized Contract Cost, Net | 1,500 | $ 1,600 | |
Capitalized Contract Cost, Amortization | 200 | 300 | |
Asset Impairment Charges | $ 0 | $ 1,551 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Deferred Revenue and Performance Obligation [Abstract] | ||
Deferred Revenue, Revenue Recognized | $ 49.4 | $ 44.3 |
Revenue, Remaining Performance Obligation, Amount | 430.6 | |
Revenue Remaining Performance Obligation, to be recognized within 12 months | $ 210 |
Disaggregation of Revenue Reven
Disaggregation of Revenue Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | $ 73,182 | $ 66,492 |
Percentage of total revenue | 100% | 100% |
UNITED STATES | ||
Revenues | $ 26,232 | $ 23,194 |
Percentage of total revenue | 36% | 35% |
Europe [Member] | ||
Revenues | $ 22,949 | $ 20,823 |
Percentage of total revenue | 31% | 31% |
The rest of the world [Member] | ||
Revenues | $ 24,001 | $ 22,475 |
Percentage of total revenue | 33% | 34% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Option to Renew | 15 years | |
Lessee, Operating Lease, Termination Option | 1 year | |
Operating Lease, Payments | $ 2,251 | $ 1,842 |
Right-of-use Asset Obtained in Exchange for Operating Lease Liability | 0 | 0 |
Decrease in right-of-use asset and related lease liability due to modification | $ 1,000 | $ 2,700 |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 10 years |
Leases Schedule of lease liabil
Leases Schedule of lease liability maturities (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |
Remaining 2023 | $ 6,649 |
2024 | 4,869 |
2025 | 4,057 |
2026 | 4,039 |
2027 | 3,965 |
2028 | 4,029 |
Thereafter | 19,223 |
Operating Leases, Payments Due | 46,831 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (14,235) |
Operating Lease, Liability | $ 32,596 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares excluded from computation of earnings per share | 2.4 | 2.2 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares excluded from computation of earnings per share | 5.8 | 5.8 |
Earnings per Share Basis and Di
Earnings per Share Basis and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator | ||
Net income (loss) | $ (19,002) | $ (28,640) |
Denominator | ||
Weighted average shares (basic) | 45,926 | 45,085 |
Dilutive effect of potential common shares | 0 | 0 |
Weighted average shares (diluted) | 45,926 | 45,085 |
Basic Earnings Per Share | $ (0.41) | $ (0.64) |
Diluted earnings per share | $ (0.41) | $ (0.64) |
Noncash Share-based Compensat_3
Noncash Share-based Compensation (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Noncash Share-based Compensation (Narrative) [Line Items] | |
Unrecognized compensation cost related to share-based compensation | $ | $ 100,700,000 |
Weighted average period to recognize cost, in years | 3 years |
Share-based compensation arrangement by share-based payment, Minimum Employee Subscription rate | 1% |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10% |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 15% |
Maximum Amount Contributable by employees under ESPP- Half yearly | $ | $ 5,000 |
Maximum Amount Contributable By Employees Under ESPP- Annually | $ | $ 10,000 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 55,149 |
ESPP contributions by Employees | $ | $ 700,000 |
RSUs | |
Noncash Share-based Compensation (Narrative) [Line Items] | |
Awards, other than options, granted in period | 1,547,607 |
Weighted average grant date fair value, per share, of awards granted in period | $ / shares | $ 25.59 |
Employee Stock [Member] | |
Noncash Share-based Compensation (Narrative) [Line Items] | |
Shares reserved for issuance under Plan | 1,000,000 |
Shares available for future grants | 331,976 |
Performance Shares [Member] | |
Noncash Share-based Compensation (Narrative) [Line Items] | |
Awards, other than options, granted in period | 142,386 |
Weighted average grant date fair value, per share, of awards granted in period | $ / shares | $ 30.42 |
2017 Equity Incentive Plan [Member] [Member] | |
Noncash Share-based Compensation (Narrative) [Line Items] | |
Shares available for future grants | 1,344,949 |
2017 Amended Equity Incentive Plan [Member] | |
Noncash Share-based Compensation (Narrative) [Line Items] | |
Shares reserved for issuance under Plan | 7,650,000 |
Noncash Share-based Compensat_4
Noncash Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 9,904 | $ 11,225 |
Cost of Sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 832 | 825 |
Selling and Marketing Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 2,928 | 3,240 |
General and Administrative Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 3,794 | 3,447 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 2,350 | 3,713 |
Operating Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 9,072 | $ 10,400 |
Noncash Share-based Compensat_5
Noncash Share-based Compensation Awards outstanding (Details) - shares shares in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Restricted Stock Unit - time based [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 3,209 | 2,235 |
Market Share Units (MSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 358 | 216 |
Equity Consideration | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 137 | 137 |
Noncash Share-based Compensat_6
Noncash Share-based Compensation Assumptions (Details) - Market Share Units (MSUs) [Member] | 3 Months Ended |
Mar. 31, 2023 | |
Assumptions For Fair Value Calculation of Market Stock Units [Line Items] | |
Volatility | 63.26% |
Risk-free interest rate | 3.76% |
Expected life, in years | 2 years 11 months 19 days |
Dividend yield | 0% |
Convertible debt (Details)
Convertible debt (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) $ / shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 293,750 | $ 293,750 | |
Convertible Debt, Noncurrent | 290,152 | 289,779 | |
Debt Instrument, Fair Value Disclosure | 277,300 | 263,700 | |
Debt Instrument, Debt Issuance Costs, Net | (3,598) | (3,971) | |
Convertible Debt | 290,152 | 289,779 | |
Debt Instrument, Periodic Payment, Interest | 1,203 | $ 1,203 | |
Amortization of Financing Costs | 373 | 373 | |
Interest Expense, Debt | 1,576 | 1,576 | |
Cash and cash equivalents | 192,376 | $ 217,393 | $ 203,627 |
Notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 143,750 | ||
Convertible Debt, Current | 0 | ||
Convertible Debt, Noncurrent | $ 142,779 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1% | ||
Debt Instrument, Convertible, Conversion Ratio | 15.1394 | ||
Debt Instrument, Convertible, Stock Price Trigger | $ / shares | $ 66.05 | ||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 13 months | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 101.62 | ||
Purchase of convertible bond hedge | $ 16,400 | ||
Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 150,000 | ||
Convertible Debt, Current | 0 | ||
Convertible Debt, Noncurrent | $ 147,373 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | ||
Debt Instrument, Convertible, Conversion Ratio | 23.9137 | ||
Debt Instrument, Convertible, Stock Price Trigger | $ / shares | $ 41.82 | ||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 53 months | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 78.90 | ||
Purchase of convertible bond hedge | $ 25,300 |
Commitments and Contingencies P
Commitments and Contingencies Purchase commitments (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Software Support Services Commitment | |
Long-term Purchase Commitment [Line Items] | |
Purchase Obligation | $ 3.5 |
Severance and other related c_2
Severance and other related costs (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Severance Costs | $ 3.6 |
Cash Payments for Severance and other related | 3.2 |
Severance and Other Liabilities | $ 1.3 |