Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-39748 | |
Entity Registrant Name | PUBMATIC, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5863224 | |
Entity Address, Address Line One | 3 Lagoon Drive | |
Entity Address, Address Line Two | Suite 180 | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94065 | |
Title of 12(b) Security | Class A common stock, $0.0001 par value per share | |
Trading Symbol | PUBM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001422930 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Period End Date | Mar. 31, 2021 | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,967,003 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 40,399,914 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 76,646 | $ 81,188 |
Marketable securities | 33,371 | 19,793 |
Accounts receivable - net | 173,071 | 219,511 |
Prepaid expenses and other current assets | 8,018 | 6,622 |
Total Current Assets | 291,106 | 327,114 |
Property, equipment and software - net | 33,958 | 30,044 |
Goodwill | 6,250 | 6,250 |
Deferred income tax asset | 498 | 762 |
Other assets, non-current | 1,658 | 7,076 |
TOTAL ASSETS | 333,470 | 371,246 |
Current Liabilities | ||
Accounts payable | 136,003 | 176,731 |
Accrued liabilities | 9,250 | 14,844 |
Total Current Liabilities | 145,253 | 191,575 |
Deferred tax liability | 1,577 | 1,561 |
Other liabilities, non-current | 2,554 | 2,683 |
TOTAL LIABILITIES | 149,384 | 195,819 |
Commitments and contingencies (Note 6) | ||
Stockholders' Equity | ||
Preferred stock, $0.0001 par value per share, 10,000,000 and no shares authorized as of March 31, 2021 and December 31, 2020, respectively; No shares issued and outstanding as of March 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock, par value $0.0001 per share; 1,000,000,000 Class A shares authorized as of March 31, 2021 and December 31, 2020; 7,057,405 and 6,801,368 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively; 1,000,000,000 Class B shares authorized as of March 31, 2021 and December 31, 2020; 42,208,456 and 42,186,774 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively. | 6 | 6 |
Treasury stock, at cost - 3,139,988 and 3,139,295 shares as of March 31, 2021 and December 31, 2020, respectively. | (11,461) | (11,434) |
Additional paid-in capital | 147,932 | 144,163 |
Accumulated other comprehensive income | 0 | 1 |
Retained earnings | 47,609 | 42,691 |
Total Stockholders' Equity | 184,086 | 175,427 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 333,470 | $ 371,246 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock shares authorized | 10,000,000 | 0 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Treasury stock shares | 3,139,988 | 3,139,295 |
Class A | ||
Common stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock shares issued | 7,057,405 | 6,801,368 |
Common stock shares outstanding | 7,057,405 | 6,801,368 |
Class B | ||
Common stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock shares issued | 42,208,456 | 42,186,774 |
Common stock shares outstanding | 42,208,456 | 42,186,774 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 43,608 | $ 28,348 |
Cost of revenue | 12,300 | 10,056 |
Gross profit | 31,308 | 18,292 |
Operating expenses: | ||
Technology and development | 3,738 | 2,919 |
Sales and marketing | 12,789 | 9,995 |
General and administration | 8,139 | 4,349 |
Total operating expenses | 24,666 | 17,263 |
Operating income | 6,642 | 1,029 |
Interest income | 62 | 260 |
Other income (expense), net | 137 | 14 |
Total other income (expense), net | 199 | 274 |
Income before provision for income taxes | 6,841 | 1,303 |
Provision for income taxes | 1,923 | 399 |
Net income | $ 4,918 | $ 904 |
Net income per share attributable to common stockholders: | ||
Basic (in usd per share) | $ 0.10 | $ 0 |
Diluted (in usd per share) | $ 90 | $ 0 |
Weighted-average shares used to compute net income per share attributable to common stockholders: | ||
Basic (in shares) | 49,109,237 | 10,092,152 |
Diluted (in shares) | 56,784,558 | 13,473,917 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Other Comprehensive Income [Abstract] | ||
Net income | $ 4,918 | $ 904 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on marketable securities, net of tax | (1) | 20 |
Comprehensive income | $ 4,917 | $ 924 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Convertible Preferred Stock | Redeemable Common Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 33,443,969 | 5,901,863 | ||||||
Beginning balance at Dec. 31, 2019 | $ 61,216 | $ 19,025 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 33,443,969 | 5,901,863 | ||||||
Ending balance at Mar. 31, 2020 | $ 61,216 | $ 19,025 | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 5,746,216 | |||||||
Beginning balance at Dec. 31, 2019 | $ 13,295 | $ 1 | $ (11,431) | $ 8,641 | $ 6 | $ 16,078 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 503 | 503 | ||||||
Exercise of stock options (in shares) | 58,452 | |||||||
Exercise of stock options | 74 | 74 | ||||||
Other comprehensive income (loss) | 20 | 20 | ||||||
Net income | 904 | 904 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 5,804,668 | |||||||
Ending balance at Mar. 31, 2020 | 14,796 | $ 1 | (11,431) | 9,218 | 26 | 16,982 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 0 | 0 | ||||||
Beginning balance at Dec. 31, 2020 | $ 0 | $ 0 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 0 | 0 | ||||||
Ending balance at Mar. 31, 2021 | $ 0 | $ 0 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 48,988,142 | |||||||
Beginning balance at Dec. 31, 2020 | 175,427 | $ 6 | (11,434) | 144,163 | 1 | 42,691 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | $ 3,318 | 3,318 | ||||||
Exercise of stock options (in shares) | 278,412 | 278,412 | ||||||
Exercise of stock options | $ 451 | 451 | ||||||
Repurchase of treasury stock, at cost (in shares) | (693) | |||||||
Repurchase of treasury stock, at cost | (27) | (27) | ||||||
Other comprehensive income (loss) | (1) | (1) | ||||||
Net income | 4,918 | 4,918 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 49,265,861 | |||||||
Ending balance at Mar. 31, 2021 | $ 184,086 | $ 6 | $ (11,461) | $ 147,932 | $ 0 | $ 47,609 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 4,918 | $ 904 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,550 | 3,586 |
Stock-based compensation | 3,165 | 495 |
Provision for doubtful accounts | 0 | 319 |
Deferred income taxes | 280 | 98 |
Amortization of premiums on marketable securities | (13) | (71) |
Other | 2 | (17) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 46,440 | 32,505 |
Prepaid expenses and other current assets | (1,241) | 492 |
Accounts payable | (40,912) | (18,755) |
Accrued expenses | (4,373) | (4,740) |
Other liabilities, non-current | (129) | (121) |
Net cash provided by operating activities | 12,687 | 14,695 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (262) | (1,279) |
Capitalized software development costs | (3,018) | (2,694) |
Purchases of marketable securities | (23,168) | (10,498) |
Proceeds from sales of marketable securities | 0 | 2,295 |
Proceeds from maturities of marketable securities | 9,600 | 12,350 |
Net cash (used in) provided by investing activities | (16,848) | 174 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments for offering costs | (805) | 0 |
Proceeds from exercise of stock options | 451 | 74 |
Payments to acquire treasury stock | (27) | 0 |
Net cash (used in) provided by financing activities | (381) | 74 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (4,542) | 14,943 |
CASH AND CASH EQUIVALENTS - Beginning of period | 81,188 | 34,250 |
CASH AND CASH EQUIVALENTS - End of period | 76,646 | 49,193 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Income taxes paid | 192 | 52 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION: | ||
Stock-based compensation capitalized as internal use software costs | 153 | 7 |
Property and equipment included in accounts payable and accrued expenses | 946 | 2,663 |
Capitalized software costs included in accounts payable and accrued expenses | $ 270 | $ 225 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of BusinessPubMatic, Inc. and subsidiaries (“Company” or “PubMatic”) was founded in 2006. The Company has offices in California, New York, Europe, Asia, and Australia. The Company provides a specialized cloud infrastructure platform that enables real-time programmatic advertising transactions. The purpose-built technology and infrastructure provides superior outcomes for both publishers and advertising leveraging an efficient design, machine learning, and data processing capabilities, with customer alignment and global omnichannel reach. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Fiscal Year The Company’s fiscal year ends on December 31, and its fiscal quarters end on March 31, June 30, September 30, and December 31. References to fiscal year 2021, for example, refer to the fiscal year ended December 31, 2021. Unaudited Interim Condensed Consolidated Financial Information The unaudited condensed consolidated financial statements include the accounts of PubMatic, Inc. and its wholly owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 or for any other interim period or for any other future year. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the SEC on March 26, 2021 (the “Annual Report”). Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The accompanying condensed consolidated financial statements include the accounts of PubMatic, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Initial Public Offering The Company’s registration statement on Form S-1 (the “IPO Registration Statement”) related to its initial public offering (“IPO”) was declared effective on December 8, 2020, and the Company’s Class A common stock began trading on the Nasdaq Global Market on December 9, 2020. On December 11, 2020, the Company completed its IPO, in which the Company sold 2,655,000 shares of Class A common stock at a price to the public of $20.00 per share. The Company received aggregate net proceeds of $45.0 million after deducting underwriting discounts, commissions and offering costs. In connection with the IPO, all of the shares of convertible preferred stock outstanding automatically converted into an aggregate of 33,443,969 shares of Class B common stock. Deferred offering costs consisted primarily of accounting, legal, and other fees related to the IPO. Prior to the IPO, all deferred offering costs were capitalized in Prepaid expenses and other current assets in the condensed consolidated balance sheets. Upon consummation of the IPO, the $4.4 million of deferred offering costs were reclassified to stockholders’ equity and recorded against the proceeds from the offering. No offering costs were capitalized as of March 31, 2021. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates and assumptions. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after March 31, 2021, including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by the Company’s assumptions and estimates. Stock-Based Compensation The Company recognizes and measures compensation expense for all stock-based payment awards granted to employees, directors, and nonemployees, including stock options, restricted stock units (“RSUs”), and the employee stock purchase plan (the “ESPP”) based on the fair value of the awards on the date of grant. The fair value of stock options and shares of common stock to be issued under the ESPP is estimated using the Black Scholes option pricing model. The grant date fair value of RSUs is based on the closing market price of the Company’s Class A common stock on the date of grant. The Black Scholes option pricing model is impacted by the fair value of the Company’s common stock, as well as changes in assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the stock options, the expected term of the stock options, risk-free interest rates, and the expected dividend yield. Stock-based compensation expense for ESPP awards is recognized on a straight-line basis over the term of each ESPP offering period. For additional information regarding stock-based compensation and the assumptions used for determining the fair value of stock options and ESPP awards, refer to Note 9 — “Stockholders’ Equity and Stock Option Plans.” Concentration of Revenue and Accounts Receivable The Company defines its revenue concentration based on revenue recognized from individual publishers. For the three months ended March 31, 2021 and 2020, one publisher represented 20% and 24%, respectively, of the Company’s revenue. As of March 31, 2021, three buyers accounted for 29%, 15% and 14%, respectively, of accounts receivable. As of December 31, 2020, four buyers accounted for 33%, 14%, 13% and 11%, respectively, of accounts receivable. Net Income Per Share Attributable to Common Stockholders Basic and diluted net income per share attributable to Class A and Class B common stock is computed in conformity with the two-class method required for participating securities. The Company considers the preferred stock as participating securities. Holders of participating securities do not have a contractual obligation to share in the Company’s losses. In accordance with the two-class method, earnings allocated to these participating securities and the related number of outstanding shares of the participating securities have been excluded from the computation of basic and diluted net income per share attributable to common stockholders. Distributed and undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Company’s Class A and Class B common stock outstanding. The diluted net income per share attributable to common stockholders is computed by giving effect to all dilutive securities. Diluted net income per share attributable to common stockholders is computed by dividing the resulting net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding. During the periods when there is a net loss attributable to common stockholders, potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive. Recent Accounting Pronouncements Not Yet Adopted Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the Company is no longer an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period. In February 2016, FASB issued ASU No. 2016-02, Leases , which requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. The guidance offers specific accounting guidance for a lessee, lessor, and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Leases will be classified as either finance or operating, with the classification affecting the pattern of expense recognition in the income statement. The guidance is effective for the Company for fiscal year 2022 and requires a modified retrospective adoption, with early adoption permitted. Although the Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements, the Company expects that most of its operating lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption of the new guidance. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update changes the accounting for recognizing impairments of financial assets, such that credit losses for certain types of financial instruments will be estimated based on expected losses. The update also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for the Company in fiscal year 2023. Early adoption is permitted after for periods beginning after December 15, 2018. The Company has not yet determined the potential effects of this new accounting guidance on its condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 from the goodwill impairment test which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and should recognize an impairment loss for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss not exceeding the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for the Company beginning on January 1, 2023. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. At adoption, this update will require a prospective approach. The Company is currently evaluating the impact of adopting this new accounting guidance on its condensed consolidated financial statements and related disclosures. In December 2019 the FASB issued ASU 2019-12—Simplifying the Accounting for Income Taxes (ASU 2019-12). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and clarifies and amends existing guidance for clarity and consistent application. This guidance is effective for the Company beginning January 1, 2022. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its condensed consolidated financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy (in thousands): March 31, 2021 Level I Level II Level III Total Financial Assets Cash equivalents $ 36,090 $ — $ — $ 36,090 Commercial paper $ — $ 30,371 $ — $ 30,371 U.S. Treasury and government debt securities $ — $ 3,000 $ — $ 3,000 December 31, 2020 Level I Level II Level III Total Financial Assets Cash equivalents $ 12,462 $ 7,199 $ — $ 19,661 Commercial paper $ — $ 10,794 $ — $ 10,794 U.S. Treasury and government debt securities $ — $ 8,999 $ — $ 8,999 The Company’s financial assets consist of Level I and II assets. The Company had no Level III assets or liabilities for the periods presented. The Company classifies its cash equivalents and marketable securities within Level I or Level II because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. The Company’s fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of the Company’s marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data and quoted market prices for similar instruments. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Marketable Securities The following table summarizes the Company’s marketable securities by significant investment categories (in thousands): March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Commercial paper $ 30,371 $ — $ — $ 30,371 U.S. Treasury and government debt securities $ 3,000 $ — $ — $ 3,000 Total $ 33,371 $ — $ — $ 33,371 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Commercial paper $ 10,794 $ — $ — $ 10,794 U.S. Treasury and government debt securities $ 8,998 $ 1 $ — $ 8,999 Total $ 19,792 $ 1 $ — $ 19,793 The remaining contractual maturity of all marketable securities was within one year as of March 31, 2021 and December 31, 2020. Realized gains and losses were not material for the three months ended March 31, 2021 and 2020. As of March 31, 2021 and 2020, there were no securities that were in an unrealized loss position for more than twelve months. Property, Equipment and Software, Net Property, equipment and software, net consists of the following (in thousands): March 31, December 31, Internal-use software $ 26,618 $ 24,513 Network hardware, computer equipment and software 68,917 62,764 Leasehold improvements 1,299 1,249 Furniture and fixtures 623 621 Property, equipment and software, gross 97,457 89,147 Less: accumulated depreciation and amortization (63,499) (59,103) Total property, equipment and software, net $ 33,958 $ 30,044 Depreciation and amortization expense related to property, equipment, and software (excluding amortization of internal use software) was $2.9 million and $2.2 million for the three months ended March 31, 2021 and 2020, respectively. The Company capitalized $2.1 million and $1.7 million in software development costs during the three months ended March 31, 2021 and 2020, respectively. Amortization expense of internal use software was $1.6 million and $1.4 million, respectively. These costs are included within cost of revenue in the condensed consolidated statements of operations and comprehensive income. The Company did not recognize any impairment charges on its long-lived assets during the three months ended March 31, 2021 and 2020, respectively. Accounts Payable Accounts payable consists of the following (in thousands): March 31, December 31, Payable to publishers $ 127,174 $ 168,673 Other 8,829 8,058 Total accounts payable $ 136,003 $ 176,731 Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, December 31, Accrued compensation $ 6,256 $ 13,352 Accrued and other current liabilities 2,994 1,492 Total accrued expenses $ 9,250 $ 14,844 |
Loan and Security Agreement
Loan and Security Agreement | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Loan and Security Agreement | Loan and Security AgreementAs of March 31, 2021, under the revolving line of credit with Silicon Valley Bank, or, SVB, the amount the Company can borrow was the lesser of $45.0 million or 80% of eligible accounts receivable less certain reserves, minus the aggregate principal amount of all outstanding advances. Interest accrues on advances under the revolving line of credit at a variable rate equal to the prime rate. An unused revolver fee in the amount of 0.30% per annum of the average unused portion of the revolver line is charged and is payable quarterly in arrears in any quarter where the average closing outstanding balance is less than $5.0 million. As of March 31, 2021, the applicable interest rate under the revolving line of credit was 3.25%. The maturity date of the revolving line of credit is June 6, 2021. As of March 31, 2021 there were no outstanding advances under the revolving line of credit. The Company’s obligations under the line of credit and the letters of credit (described in Note 6) with SVB are secured by substantially all of its assets excluding its intellectual property. The Loan Agreement contains affirmative covenants including financial covenants that, among other things, require the Company to maintain an adjusted quick ratio of no less than 1.0 to 1.0. The adjusted quick ratio is defined as the ratio of unrestricted cash and cash equivalents at SVB, plus billed accounts receivable to total accounts payable plus all SVB loans outstanding and outstanding letters of credit. The Loan Agreement also restricts the Company from paying dividends to stockholders without prior consent from SVB. The Company was in compliance with the financial covenants as of March 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases and Other Contractual Obligations The Company has commitments for future payments related to office facilities leases and other contractual obligations. The Company leases its office facilities under operating lease agreements that expire over varying time periods through the year ending December 31, 2023. Certain of these lease agreements have free or escalating rent payment provisions or fund certain leasehold improvements, which the Company accounts as lease incentives. The Company recognizes rent expense under such agreements on a straight-line basis over the lease term, with any lease incentive amortized as a reduction of rent expense over the lease term. The Company also has other contractual obligations expiring over varying time periods through the year ending December 31, 2022. Other contractual obligations primarily relate to minimum contractual payments due to data center providers. Future annual minimum commitments as of March 31, 2021, are as follows (in thousands): Leases Other Contractual Obligations 2021 (for remaining 9 months) 1,472 4,168 2022 1,028 4,386 2023 109 587 Total future minimum commitments, net $ 2,609 $ 9,141 Rent expense, net of sublease income, incurred under operating leases was $0.6 million and $0.6 million for three months ended March 31, 2021 and 2020, respectively. Rent expense was offset by sublease income of $0.1 million for the three months ended March 31, 2020. No rent expense was offset by sublease income for the three months ended March 31, 2021. Letters of Credit As of March 31, 2021 and December 31, 2020, the Company had an irrevocable letter of credit outstanding related to noncancelable facilities leases in the amounts of $0.7 million, with annual automatic renewal and final expiration date in June 2022. Legal Matters From time to time, the Company has become involved in claims and other legal matters arising in the normal course of business. The Company investigates these claims as they arise and accrues for contingencies when the Company believes that a loss is probable and that the Company can reasonably estimate the amount of any such loss. The Company has made an assessment of the probability of incurring any such losses and whether or not those losses are estimable and although claims are inherently unpredictable the Company concluded that these losses are not material to the Company’s business, financial position, results of operations, or cash flows. To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred, and the amount of such additional loss would be material, the Company will either disclose the estimated additional loss or state that such an estimate cannot be made. In June 2020, one of the Company’s buyers which had filed for bankruptcy in March 2019, brought a cause of action to recover amounts paid to the Company 90 days prior to its bankruptcy filing on the basis that such payments constituted preferential payments by the buyer. This matter is being managed by the bankruptcy court in consolidation with the buyer’s overall bankruptcy process. The Company has settled the matter for $0.3 million. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves future claims that may be made against the Company, but have not yet been made. To date, the Company has not paid any material claims or been required to defend any actions related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. In addition, the Company has indemnification agreements with certain of its directors and executive officers that require it, among other things, to indemnify them against certain liabilities that may arise due to their status or service as directors or officers of the Company. The terms of such obligations may vary. |
Convertible Preferred Stock
Convertible Preferred Stock | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Convertible Preferred Stock | Convertible Preferred Stock Upon completion of the IPO in December 11, 2020, all shares of convertible preferred stock outstanding, totaling 33,443,969 shares, were automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis and their carrying value of $61.2 million was reclassified into stockholders’ equity. As of March 31, 2021, there were no shares of convertible preferred stock issued and outstanding. In connection with the IPO, the Company’s restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of undesignated preferred stock with a par value of $0.0001 with rights and preferences, including voting rights, designated from time to time by the Company’s board of directors. |
Stockholders_ Notes Receivable
Stockholders’ Notes Receivable and Redeemable Common Stock | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ Notes Receivable, Redeemable Common Stock and Stock Option Plans | Stockholders’ Notes Receivable and Redeemable Common Stock In August 2018, the Company loaned its Chief Executive Officer and Chief Growth Officer a total of $4.0 million under secured nonrecourse promissory notes (the “Notes”). The Notes bear interest at a rate of 2.42% per annum compounded annually and mature on August 30, 2021, with interest and principal due at maturity. The Notes are secured by pledges of 1.6 million shares of outstanding common stock of the Company owned by the two officers (the “Pledged Shares”). The Notes may be prepaid in cash at any time without penalty. At maturity and in certain events of default, the Notes may, at the option of the two officers, be repaid in cash or surrender and cancellation of the Pledged Shares at fair market value. If the Pledged Shares are insufficient to repay the entire amount due under the Notes, then the value of the Pledged Shares will be deemed to be the full amount due under the Notes. As the Company’s only recourse on the Notes and associated interest is the Pledged Shares then the Notes were accounted for as nonrecourse and recorded to stockholders’ equity as of March 31, 2020. This was accounted for as though the Company repurchased the Pledged Shares and in exchange issued the Notes and granted 1.6 million fully vested stock options with an exercise price equal to the face value of Notes plus interest. No principal or interest payments were paid during the three months ended March 31, 2020. During the quarter ended September 30, 2020, all principal and interest due under the notes were prepaid. In connection with the Notes, the Company provided the officers with a right to sell to the Company outstanding shares of common stock upon settlement of the Notes (the “Put Option”). The officers may only exercise the Put Option upon repayment of the Notes using the Pledged Shares or upon the prepayment of the Notes using proceeds from the officers’ sale or disposal of the Pledged Shares at a price less than the face value of the Notes. The Put Option allows the officers to require the Company to repurchase any or all common stock held or beneficially owned to offset their tax liabilities resulting from the settlement of the Notes via one of the above methods. As the exercisability of the Put Option and therefore redemption of the common stock is outside the control of the Company then all common stock held or beneficially owned by the officers requires temporary equity classification. The Company therefore classified $19.0 million of common stock outside of stockholders’ equity as of March 31, 2020, which represented the fair value of the shares held or beneficially owned on the transaction date. The Company did not adjust the carrying value of the redeemable common stock during the three months ended March 31, 2020 since a redemption event was not probable. The Put Option expired unexercised upon the repayment of the Notes and during the Company’s quarter ended September 30, 2020, the $19.0 million of redeemable common stock has been reclassified back to common stock. Common Stock In connection with the IPO in December 2020, the Company’s restated certificate of incorporation became effective, which authorized 1,000,000,000 shares of Class A common stock, $0.0001 par value per share, and 1,000,000,000 shares of Class B common stock, $0.0001 par value per share. Class A and Class B common stock are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. Equity Incentive Plans Upon completion of the IPO, the Company adopted the 2020 Equity Incentive Plan (“2020 Plan”), pursuant to which the Company may grant stock options, restricted stock awards, stock appreciation rights, restricted stock units (“RSUs”), deferred share units (“DSUs”) performance awards, and stock bonus awards. As of March 31, 2021, the Company has reserved 7,546,410 shares of Class A common stock for the issuance of awards under the 2020 Plan. These available shares will increase automatically on January 1 for each of the first ten calendar years during the term of the 2020 Plan by the number of shares equal to the lesser of five percent (5%) of the aggregate number of outstanding shares of all classes of the Company’s common stock outstanding as of the immediately preceding December 31, or a number as may be determined by the Company’s board of directors or compensation committee. To the extent outstanding awards under the 2017 Plan and the 2006 Plan are forfeited, lapse unexercised, or would otherwise have been returned to the share reserve under the Prior Plans, the shares of Class B common stock subject to such awards instead will be available for future issuance as Class A common stock under the 2020 Plan. No new awards were issued under the 2006 Plan or 2017 Plan after the effective date of the 2020 Plan. Stock Options A summary of stock option activity under the Company’s equity incentive plan and related information is as follows: Stock Options Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding — December 31, 2020 8,459,969 $ 2.53 6.83 $ 215,144 Options granted 657,066 $ 36.65 Options exercised (278,412) $ 1.62 Options canceled (6,343) $ 4.29 Options expired (160) $ 0.26 Outstanding — March 31, 2021 8,832,120 $ 5.09 6.97 $ 390,601 Vested — March 31, 2021 5,551,331 $ 2.33 5.75 $ 260,855 As of March 31, 2021, unrecognized stock-based compensation of $22.7 million related to unvested stock options will be recognized on a straight-line basis over a weighted average period of 3.35 years. Restricted Stock Units A summary of RSU activity under the Company’s equity incentive plan and related information is as follows: RSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested — December 31, 2020 — $ — Granted 227,792 $ 39.47 Unvested — March 31, 2021 227,792 $ 39.47 As of March 31, 2021, unrecognized stock-based compensation of $8.4 million related to unvested RSUs will be recognized on a straight-line basis over a weighted average period of 3.48 years. 2020 Employee Stock Purchase Plan In November 2020, the Company’s board of directors adopted, and its stockholders approved, the 2020 Employee Stock Purchase Plan (“ESPP”), which became effective in connection with the IPO. A total of 500,000 shares of the Company’s Class A common stock were initially reserved for issuance under the ESPP. The aggregate number of shares reserved for sale under the ESPP will increase automatically on January 1st of each of the first ten calendar years during the term of the ESPP after the first offering date by the number of shares equal to the lesser of 1% of the total outstanding shares of all classes of the Company’s common stock as of the immediately preceding December 31, (rounded down to the nearest whole share) provided that the Company’s board of directors or the compensation committee may, in its sole discretion, reduce the amount of the increase in any particular year. The aggregate number of shares issued over the term of the ESPP, subject to stock dividends, recapitalizations, stock splits, reverse stock splits, subdivisions, combinations, reclassifications or similar changes to the Company’s capital structure, may not exceed 7,500,000 shares of Class A common stock. As of March 31, 2021, the Company has reserved 989,881 shares of its common stock for issuance under the ESPP. Under the current ESPP, Class A common stock will be purchased for the accounts of employees participating in the ESPP on each Purchase Date at a price per share equal to eighty-five percent (85%) of the lesser of: (a) the Fair Market Value on the Offering Date or (b) the Fair Market Value on the Purchase Date. No employee may purchase shares under the ESPP at a rate in excess of $25,000 in Fair Market Value for each calendar year in which such Offering Period is in effect or 3,500 shares. The 2020 ESPP provides for, at maximum, 27 months offering periods with each offering period may itself consist of one or more six (6)-month purchase periods, generally in May and November each year, beginning December 9, 2020 through May 31, 2022 with Purchase Date on the last day of each Purchase Period. As of March 31, 2021, $1.9 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions and is included in accrued and other current liabilities. There were no purchases for the three months ended March 31, 2021 related to the 2020 ESPP. As of March 31, 2021, unrecognized stock-based compensation expense related to the ESPP was $4.4 million, which is expected to be recognized over a weighted-average period of 1.17 years. Stock-Based Compensation The total stock-based compensation recognized in the condensed consolidated statements of operations and comprehensive income is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cost of revenue $ 168 $ 10 Technology and development 481 74 Sales and marketing 1,161 180 General and administrative 1,355 231 Total stock-based compensation 3,165 495 Tax benefit from stock-based compensation (251) (43) Total stock-based compensation, net of tax effect $ 2,914 $ 452 |
Stockholders_ Equity and Stock
Stockholders’ Equity and Stock Option Plans | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ Notes Receivable, Redeemable Common Stock and Stock Option Plans | Stockholders’ Notes Receivable and Redeemable Common Stock In August 2018, the Company loaned its Chief Executive Officer and Chief Growth Officer a total of $4.0 million under secured nonrecourse promissory notes (the “Notes”). The Notes bear interest at a rate of 2.42% per annum compounded annually and mature on August 30, 2021, with interest and principal due at maturity. The Notes are secured by pledges of 1.6 million shares of outstanding common stock of the Company owned by the two officers (the “Pledged Shares”). The Notes may be prepaid in cash at any time without penalty. At maturity and in certain events of default, the Notes may, at the option of the two officers, be repaid in cash or surrender and cancellation of the Pledged Shares at fair market value. If the Pledged Shares are insufficient to repay the entire amount due under the Notes, then the value of the Pledged Shares will be deemed to be the full amount due under the Notes. As the Company’s only recourse on the Notes and associated interest is the Pledged Shares then the Notes were accounted for as nonrecourse and recorded to stockholders’ equity as of March 31, 2020. This was accounted for as though the Company repurchased the Pledged Shares and in exchange issued the Notes and granted 1.6 million fully vested stock options with an exercise price equal to the face value of Notes plus interest. No principal or interest payments were paid during the three months ended March 31, 2020. During the quarter ended September 30, 2020, all principal and interest due under the notes were prepaid. In connection with the Notes, the Company provided the officers with a right to sell to the Company outstanding shares of common stock upon settlement of the Notes (the “Put Option”). The officers may only exercise the Put Option upon repayment of the Notes using the Pledged Shares or upon the prepayment of the Notes using proceeds from the officers’ sale or disposal of the Pledged Shares at a price less than the face value of the Notes. The Put Option allows the officers to require the Company to repurchase any or all common stock held or beneficially owned to offset their tax liabilities resulting from the settlement of the Notes via one of the above methods. As the exercisability of the Put Option and therefore redemption of the common stock is outside the control of the Company then all common stock held or beneficially owned by the officers requires temporary equity classification. The Company therefore classified $19.0 million of common stock outside of stockholders’ equity as of March 31, 2020, which represented the fair value of the shares held or beneficially owned on the transaction date. The Company did not adjust the carrying value of the redeemable common stock during the three months ended March 31, 2020 since a redemption event was not probable. The Put Option expired unexercised upon the repayment of the Notes and during the Company’s quarter ended September 30, 2020, the $19.0 million of redeemable common stock has been reclassified back to common stock. Common Stock In connection with the IPO in December 2020, the Company’s restated certificate of incorporation became effective, which authorized 1,000,000,000 shares of Class A common stock, $0.0001 par value per share, and 1,000,000,000 shares of Class B common stock, $0.0001 par value per share. Class A and Class B common stock are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. Equity Incentive Plans Upon completion of the IPO, the Company adopted the 2020 Equity Incentive Plan (“2020 Plan”), pursuant to which the Company may grant stock options, restricted stock awards, stock appreciation rights, restricted stock units (“RSUs”), deferred share units (“DSUs”) performance awards, and stock bonus awards. As of March 31, 2021, the Company has reserved 7,546,410 shares of Class A common stock for the issuance of awards under the 2020 Plan. These available shares will increase automatically on January 1 for each of the first ten calendar years during the term of the 2020 Plan by the number of shares equal to the lesser of five percent (5%) of the aggregate number of outstanding shares of all classes of the Company’s common stock outstanding as of the immediately preceding December 31, or a number as may be determined by the Company’s board of directors or compensation committee. To the extent outstanding awards under the 2017 Plan and the 2006 Plan are forfeited, lapse unexercised, or would otherwise have been returned to the share reserve under the Prior Plans, the shares of Class B common stock subject to such awards instead will be available for future issuance as Class A common stock under the 2020 Plan. No new awards were issued under the 2006 Plan or 2017 Plan after the effective date of the 2020 Plan. Stock Options A summary of stock option activity under the Company’s equity incentive plan and related information is as follows: Stock Options Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding — December 31, 2020 8,459,969 $ 2.53 6.83 $ 215,144 Options granted 657,066 $ 36.65 Options exercised (278,412) $ 1.62 Options canceled (6,343) $ 4.29 Options expired (160) $ 0.26 Outstanding — March 31, 2021 8,832,120 $ 5.09 6.97 $ 390,601 Vested — March 31, 2021 5,551,331 $ 2.33 5.75 $ 260,855 As of March 31, 2021, unrecognized stock-based compensation of $22.7 million related to unvested stock options will be recognized on a straight-line basis over a weighted average period of 3.35 years. Restricted Stock Units A summary of RSU activity under the Company’s equity incentive plan and related information is as follows: RSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested — December 31, 2020 — $ — Granted 227,792 $ 39.47 Unvested — March 31, 2021 227,792 $ 39.47 As of March 31, 2021, unrecognized stock-based compensation of $8.4 million related to unvested RSUs will be recognized on a straight-line basis over a weighted average period of 3.48 years. 2020 Employee Stock Purchase Plan In November 2020, the Company’s board of directors adopted, and its stockholders approved, the 2020 Employee Stock Purchase Plan (“ESPP”), which became effective in connection with the IPO. A total of 500,000 shares of the Company’s Class A common stock were initially reserved for issuance under the ESPP. The aggregate number of shares reserved for sale under the ESPP will increase automatically on January 1st of each of the first ten calendar years during the term of the ESPP after the first offering date by the number of shares equal to the lesser of 1% of the total outstanding shares of all classes of the Company’s common stock as of the immediately preceding December 31, (rounded down to the nearest whole share) provided that the Company’s board of directors or the compensation committee may, in its sole discretion, reduce the amount of the increase in any particular year. The aggregate number of shares issued over the term of the ESPP, subject to stock dividends, recapitalizations, stock splits, reverse stock splits, subdivisions, combinations, reclassifications or similar changes to the Company’s capital structure, may not exceed 7,500,000 shares of Class A common stock. As of March 31, 2021, the Company has reserved 989,881 shares of its common stock for issuance under the ESPP. Under the current ESPP, Class A common stock will be purchased for the accounts of employees participating in the ESPP on each Purchase Date at a price per share equal to eighty-five percent (85%) of the lesser of: (a) the Fair Market Value on the Offering Date or (b) the Fair Market Value on the Purchase Date. No employee may purchase shares under the ESPP at a rate in excess of $25,000 in Fair Market Value for each calendar year in which such Offering Period is in effect or 3,500 shares. The 2020 ESPP provides for, at maximum, 27 months offering periods with each offering period may itself consist of one or more six (6)-month purchase periods, generally in May and November each year, beginning December 9, 2020 through May 31, 2022 with Purchase Date on the last day of each Purchase Period. As of March 31, 2021, $1.9 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions and is included in accrued and other current liabilities. There were no purchases for the three months ended March 31, 2021 related to the 2020 ESPP. As of March 31, 2021, unrecognized stock-based compensation expense related to the ESPP was $4.4 million, which is expected to be recognized over a weighted-average period of 1.17 years. Stock-Based Compensation The total stock-based compensation recognized in the condensed consolidated statements of operations and comprehensive income is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cost of revenue $ 168 $ 10 Technology and development 481 74 Sales and marketing 1,161 180 General and administrative 1,355 231 Total stock-based compensation 3,165 495 Tax benefit from stock-based compensation (251) (43) Total stock-based compensation, net of tax effect $ 2,914 $ 452 |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Common Stockholders | Net Income Per Share Attributable to Common Stockholders The following table sets forth the computation of the Company’s basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended March 31, 2021 2020 Class A Class B Class A Class B (in thousands, except share and per share data) Numerator: Net income $ 704 $ 4,214 $ — $ 904 Less: Undistributed earnings allocated to participating securities $ — $ — $ — $ (904) Reallocation of net income attributable to common stockholders $ (18) $ 18 $ — $ — Net income attributable to common stockholders – basic $ 686 $ 4,232 $ — $ — Denominator: Weighted average common shares outstanding – basic 6,853,805 42,255,432 — 10,092,152 Net income per share attributable to common stockholders – basic: $ 0.10 $ 0.10 $ — $ — Numerator: Net income attributable to common stockholders - diluted $ 613 $ 4,305 $ — $ — Denominator: Weighted average shares outstanding – basic 6,853,805 42,255,432 — 10,092,152 Options to purchase common stock 228,868 7,446,453 — 3,367,216 Warrants to purchase common stock — — — 14,549 Weighted average shares outstanding – diluted 7,082,673 49,701,885 — 13,473,917 Net income per share attributable to common stockholders – diluted $ 0.09 $ 0.09 $ — $ — The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended March 31, 2021 2020 Class A Class B Class A Class B Options to purchase common stock 446,845 — — 2,663,224 Common stock issuable upon conversion of convertible preferred stock — — — 33,443,969 Total excludable from net income per share attributable to common stockholders – diluted 446,845 — — 36,107,193 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its provision for income taxes by applying the estimated annual effective tax rate to pretax income and adjusts the provision for discrete tax items recorded in the period. The Company recorded a provision for income taxes of $1.9 million and $0.4 million for the three months ended March 31, 2021 and 2020, respectively. The effective income tax rate was 28% for the three months ended March 31, 2021. The income tax expense for the three months ended March 31, 2021 differs from the statutory federal rate of 21% due to nondeductible stock-based compensation, a higher tax rate in certain foreign countries where the Company operates, partially offset by a deduction for foreign-sourced revenue, and federal and state research credits. The effective income tax rate was 31% for the three months ended March 31, 2020 differs from the statutory federal rate of 21% primarily due to nondeductible stock-based compensation and foreign rate differential partially offset by federal and state research credits. Realization of the Company’s deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance, the Company considers its historical, as well as future projected, taxable income along with other objectively verifiable evidence. Objectively verifiable evidence includes the Company’s realization of tax attributes, assessment of tax credits, and utilization of net operating loss carryforwards during the year. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following table represents total revenue by geographic area based on the publisher’s billing address (in thousands): Three Months Ended March 31, 2021 2020 United States $ 27,408 $ 19,042 EMEA 11,309 5,849 APAC 4,194 2,941 Rest of the world 697 516 Total $ 43,608 $ 28,348 The Company’s long-lived assets, net by geographic area are summarized as follows (in thousands): March 31, December 31, 2020 United States $ 28,184 $ 24,580 Rest of the world 5,774 5,464 Total $ 33,958 $ 30,044 |
401(k) Plan
401(k) Plan | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) PlanThe Company has a 401(k) Savings Plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer matching contribution. The Company made no matching contribution to the 401(k) Plan for the three months ended March 31, 2021 and 2020, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn April 2021, the Company amended its Loan Agreement with Silicon Valley Bank to extend the maturity date of the revolving line of credit to June 6, 2021. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The accompanying condensed consolidated financial statements include the accounts of PubMatic, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates and assumptions. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after March 31, 2021, including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by the Company’s assumptions and estimates. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes and measures compensation expense for all stock-based payment awards granted to employees, directors, and nonemployees, including stock options, restricted stock units (“RSUs”), and the employee stock purchase plan (the “ESPP”) based on the fair value of the awards on the date of grant. The fair value of stock options and shares of common stock to be issued under the ESPP is estimated using the Black Scholes option pricing model. The grant date fair value of RSUs is based on the closing market price of the Company’s Class A common stock on the date of grant. The Black Scholes option pricing model is impacted by the fair value of the Company’s common stock, as well as changes in assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the stock options, the expected term of the stock options, risk-free interest rates, and the expected dividend yield. Stock-based compensation expense for ESPP awards is recognized on a straight-line basis over the term of each ESPP offering period. For additional information regarding stock-based compensation and the assumptions used for determining the fair value of stock options and ESPP awards, refer to Note 9 — “Stockholders’ Equity and Stock Option Plans.” |
Net Income Per Share Attributable to Common Stockholders | Net Income Per Share Attributable to Common Stockholders Basic and diluted net income per share attributable to Class A and Class B common stock is computed in conformity with the two-class method required for participating securities. The Company considers the preferred stock as participating securities. Holders of participating securities do not have a contractual obligation to share in the Company’s losses. In accordance with the two-class method, earnings allocated to these participating securities and the related number of outstanding shares of the participating securities have been excluded from the computation of basic and diluted net income per share attributable to common stockholders. Distributed and undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Company’s Class A and Class B common stock outstanding. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the Company is no longer an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period. In February 2016, FASB issued ASU No. 2016-02, Leases , which requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. The guidance offers specific accounting guidance for a lessee, lessor, and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Leases will be classified as either finance or operating, with the classification affecting the pattern of expense recognition in the income statement. The guidance is effective for the Company for fiscal year 2022 and requires a modified retrospective adoption, with early adoption permitted. Although the Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements, the Company expects that most of its operating lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption of the new guidance. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update changes the accounting for recognizing impairments of financial assets, such that credit losses for certain types of financial instruments will be estimated based on expected losses. The update also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for the Company in fiscal year 2023. Early adoption is permitted after for periods beginning after December 15, 2018. The Company has not yet determined the potential effects of this new accounting guidance on its condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 from the goodwill impairment test which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and should recognize an impairment loss for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss not exceeding the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for the Company beginning on January 1, 2023. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. At adoption, this update will require a prospective approach. The Company is currently evaluating the impact of adopting this new accounting guidance on its condensed consolidated financial statements and related disclosures. In December 2019 the FASB issued ASU 2019-12—Simplifying the Accounting for Income Taxes (ASU 2019-12). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and clarifies and amends existing guidance for clarity and consistent application. This guidance is effective for the Company beginning January 1, 2022. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its condensed consolidated financial statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy (in thousands): March 31, 2021 Level I Level II Level III Total Financial Assets Cash equivalents $ 36,090 $ — $ — $ 36,090 Commercial paper $ — $ 30,371 $ — $ 30,371 U.S. Treasury and government debt securities $ — $ 3,000 $ — $ 3,000 December 31, 2020 Level I Level II Level III Total Financial Assets Cash equivalents $ 12,462 $ 7,199 $ — $ 19,661 Commercial paper $ — $ 10,794 $ — $ 10,794 U.S. Treasury and government debt securities $ — $ 8,999 $ — $ 8,999 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Debt Securities, Available-for-sale | The following table summarizes the Company’s marketable securities by significant investment categories (in thousands): March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Commercial paper $ 30,371 $ — $ — $ 30,371 U.S. Treasury and government debt securities $ 3,000 $ — $ — $ 3,000 Total $ 33,371 $ — $ — $ 33,371 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Commercial paper $ 10,794 $ — $ — $ 10,794 U.S. Treasury and government debt securities $ 8,998 $ 1 $ — $ 8,999 Total $ 19,792 $ 1 $ — $ 19,793 |
Property, Plant and Equipment | Property, equipment and software, net consists of the following (in thousands): March 31, December 31, Internal-use software $ 26,618 $ 24,513 Network hardware, computer equipment and software 68,917 62,764 Leasehold improvements 1,299 1,249 Furniture and fixtures 623 621 Property, equipment and software, gross 97,457 89,147 Less: accumulated depreciation and amortization (63,499) (59,103) Total property, equipment and software, net $ 33,958 $ 30,044 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable consists of the following (in thousands): March 31, December 31, Payable to publishers $ 127,174 $ 168,673 Other 8,829 8,058 Total accounts payable $ 136,003 $ 176,731 |
Schedule of Accrued Liabilities | Accrued expenses consist of the following (in thousands): March 31, December 31, Accrued compensation $ 6,256 $ 13,352 Accrued and other current liabilities 2,994 1,492 Total accrued expenses $ 9,250 $ 14,844 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity | Future annual minimum commitments as of March 31, 2021, are as follows (in thousands): Leases Other Contractual Obligations 2021 (for remaining 9 months) 1,472 4,168 2022 1,028 4,386 2023 109 587 Total future minimum commitments, net $ 2,609 $ 9,141 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock Option Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Stock Options Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding — December 31, 2020 8,459,969 $ 2.53 6.83 $ 215,144 Options granted 657,066 $ 36.65 Options exercised (278,412) $ 1.62 Options canceled (6,343) $ 4.29 Options expired (160) $ 0.26 Outstanding — March 31, 2021 8,832,120 $ 5.09 6.97 $ 390,601 Vested — March 31, 2021 5,551,331 $ 2.33 5.75 $ 260,855 A summary of RSU activity under the Company’s equity incentive plan and related information is as follows: RSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested — December 31, 2020 — $ — Granted 227,792 $ 39.47 Unvested — March 31, 2021 227,792 $ 39.47 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | The total stock-based compensation recognized in the condensed consolidated statements of operations and comprehensive income is as follows (in thousands): Three Months Ended March 31, 2021 2020 Cost of revenue $ 168 $ 10 Technology and development 481 74 Sales and marketing 1,161 180 General and administrative 1,355 231 Total stock-based compensation 3,165 495 Tax benefit from stock-based compensation (251) (43) Total stock-based compensation, net of tax effect $ 2,914 $ 452 |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share, Basic, by Common Class, Including Two Class Method | The following table sets forth the computation of the Company’s basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended March 31, 2021 2020 Class A Class B Class A Class B (in thousands, except share and per share data) Numerator: Net income $ 704 $ 4,214 $ — $ 904 Less: Undistributed earnings allocated to participating securities $ — $ — $ — $ (904) Reallocation of net income attributable to common stockholders $ (18) $ 18 $ — $ — Net income attributable to common stockholders – basic $ 686 $ 4,232 $ — $ — Denominator: Weighted average common shares outstanding – basic 6,853,805 42,255,432 — 10,092,152 Net income per share attributable to common stockholders – basic: $ 0.10 $ 0.10 $ — $ — Numerator: Net income attributable to common stockholders - diluted $ 613 $ 4,305 $ — $ — Denominator: Weighted average shares outstanding – basic 6,853,805 42,255,432 — 10,092,152 Options to purchase common stock 228,868 7,446,453 — 3,367,216 Warrants to purchase common stock — — — 14,549 Weighted average shares outstanding – diluted 7,082,673 49,701,885 — 13,473,917 Net income per share attributable to common stockholders – diluted $ 0.09 $ 0.09 $ — $ — |
Schedule of Earnings per Share, Diluted, by Common Class, Including Two Class Method | The following table sets forth the computation of the Company’s basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended March 31, 2021 2020 Class A Class B Class A Class B (in thousands, except share and per share data) Numerator: Net income $ 704 $ 4,214 $ — $ 904 Less: Undistributed earnings allocated to participating securities $ — $ — $ — $ (904) Reallocation of net income attributable to common stockholders $ (18) $ 18 $ — $ — Net income attributable to common stockholders – basic $ 686 $ 4,232 $ — $ — Denominator: Weighted average common shares outstanding – basic 6,853,805 42,255,432 — 10,092,152 Net income per share attributable to common stockholders – basic: $ 0.10 $ 0.10 $ — $ — Numerator: Net income attributable to common stockholders - diluted $ 613 $ 4,305 $ — $ — Denominator: Weighted average shares outstanding – basic 6,853,805 42,255,432 — 10,092,152 Options to purchase common stock 228,868 7,446,453 — 3,367,216 Warrants to purchase common stock — — — 14,549 Weighted average shares outstanding – diluted 7,082,673 49,701,885 — 13,473,917 Net income per share attributable to common stockholders – diluted $ 0.09 $ 0.09 $ — $ — |
Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share | The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended March 31, 2021 2020 Class A Class B Class A Class B Options to purchase common stock 446,845 — — 2,663,224 Common stock issuable upon conversion of convertible preferred stock — — — 33,443,969 Total excludable from net income per share attributable to common stockholders – diluted 446,845 — — 36,107,193 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table represents total revenue by geographic area based on the publisher’s billing address (in thousands): Three Months Ended March 31, 2021 2020 United States $ 27,408 $ 19,042 EMEA 11,309 5,849 APAC 4,194 2,941 Rest of the world 697 516 Total $ 43,608 $ 28,348 The Company’s long-lived assets, net by geographic area are summarized as follows (in thousands): March 31, December 31, 2020 United States $ 28,184 $ 24,580 Rest of the world 5,774 5,464 Total $ 33,958 $ 30,044 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Initial Public Offering (Details) $ / shares in Units, $ in Millions | Dec. 11, 2020USD ($)$ / sharesshares |
Class B | |
Schedule of Equity Method Investments [Line Items] | |
Convertible preferred stock, shares issued upon conversion | 33,443,969 |
IPO | |
Schedule of Equity Method Investments [Line Items] | |
Sale of stock, number of shares issued in transaction | 2,655,000 |
Sale of Stock, Price Per Share | $ / shares | $ 20 |
Sale of stock, consideration received on transaction | $ | $ 45 |
Deferred offering costs | $ | $ 4.4 |
IPO | Class B | |
Schedule of Equity Method Investments [Line Items] | |
Convertible preferred stock, shares issued upon conversion | 33,443,969 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Concentration Risk Percentage (Details) - Customer Concentration Risk - Accounts Receivable | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
One Publisher | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% | 24.00% | |
Buyer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 29.00% | 33.00% | |
Buyer Two | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | 14.00% | |
Buyer Three | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 13.00% | |
Buyer Four | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | $ 36,090 | $ 19,661 |
Fair Value, Inputs, Level 1 | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 36,090 | 12,462 |
Fair Value, Inputs, Level 2 | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 7,199 |
Fair Value, Inputs, Level 3 | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 30,371 | 10,794 |
Commercial paper | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Commercial paper | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 30,371 | 10,794 |
Commercial paper | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
U.S. Treasury and government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Treasury and government debt securities | 3,000 | 8,999 |
U.S. Treasury and government debt securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Treasury and government debt securities | 0 | 0 |
U.S. Treasury and government debt securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Treasury and government debt securities | 3,000 | 8,999 |
U.S. Treasury and government debt securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Treasury and government debt securities | $ 0 | $ 0 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 33,371 | $ 19,792 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 33,371 | 19,793 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 30,371 | 10,794 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 30,371 | 10,794 |
U.S. Treasury and government debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,000 | 8,998 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | $ 3,000 | $ 8,999 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property, Equipment and Software, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 97,457 | $ 89,147 |
Less: accumulated depreciation and amortization | (63,499) | (59,103) |
Property, equipment and software - net | 33,958 | 30,044 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 26,618 | 24,513 |
Network hardware, computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 68,917 | 62,764 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 1,299 | 1,249 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 623 | $ 621 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 2.9 | $ 2.2 |
Capitalized computer software additions | 2.1 | 1.7 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Amortization | $ 1.6 | $ 1.4 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accounts Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Payable to publishers | $ 127,174 | $ 168,673 |
Other | 8,829 | 8,058 |
Total accounts payable | $ 136,003 | $ 176,731 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation | $ 6,256 | $ 13,352 |
Accrued and other current liabilities | 2,994 | 1,492 |
Accrued liabilities | $ 9,250 | $ 14,844 |
Loan and Security Agreement (De
Loan and Security Agreement (Details) - Revolving Credit Facility - Silicon Valley Bank $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 45 |
Line of credit facility, borrowing capacity, percentage of eligible accounts receivable, net, | 80.00% |
Line of credit facility, unused capacity, commitment fee percentage | 0.30% |
Line of credit facility, borrowing capacity, unused capacity fee, closing balance threshold | $ 5 |
Debt instrument, interest rate | 3.25% |
Debt instrument, covenant, quick ratio, minimum | 1 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Commitments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases | |
2021 (for remaining 9 months) | $ 1,472 |
2022 | 1,028 |
2023 | 109 |
Total future minimum commitments, net | 2,609 |
Other Contractual Obligations | |
2021 (for remaining 9 months) | 4,168 |
2022 | 4,386 |
2023 | 587 |
Total future minimum commitments, net | $ 9,141 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, rent expense, net | $ 0.6 | $ 0.6 | |
Sublease income | $ 0.1 | ||
Letters of credit outstanding, amount | $ 0.7 | $ 0.7 | |
Settlement payment term | 90 days | ||
Litigation settlement, amount awarded to other party | $ 0.3 |
Convertible Preferred Stock (De
Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 11, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Preferred Units [Line Items] | |||||
Preferred stock shares authorized | 10,000,000 | 0 | 10,000,000 | ||
Preferred stock par value (in usd per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Class B | |||||
Preferred Units [Line Items] | |||||
Convertible preferred stock, shares issued upon conversion | 33,443,969 | ||||
Convertible Preferred Stock | |||||
Preferred Units [Line Items] | |||||
Temporary equity, carrying amount, attributable to parent | $ 0 | $ 0 | $ 61,200 | $ 61,216 | $ 61,216 |
Stockholders_ Notes Receivabl_2
Stockholders’ Notes Receivable and Redeemable Common Stock (Details) - USD ($) $ in Thousands, shares in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 |
Class of Stock [Line Items] | |||||
Temporary equity, common stock, shares issued | 1.6 | ||||
2.42% due August 2021 | Notes Payable, Other Payables | |||||
Class of Stock [Line Items] | |||||
Debt instrument, face amount | $ 4,000 | ||||
Debt instrument, interest rate | 2.42% | ||||
Redeemable Common Stock | |||||
Class of Stock [Line Items] | |||||
Temporary equity, carrying amount, attributable to parent | $ 0 | $ 0 | $ 19,025 | $ 19,025 |
Stockholders_ Equity and Stoc_3
Stockholders’ Equity and Stock Option Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 11, 2020 | Nov. 30, 2020 | |
Class of Stock [Line Items] | ||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 8,400 | |||
Discount from market price, purchase date | 85.00% | |||
Maximum number of shares per employee, amount | $ 25 | |||
Maximum number of shares per employee | 3,500 | |||
Amount withheld for employee stock purchase plan | $ 1,900 | |||
Share-based Payment Arrangement, Option | ||||
Class of Stock [Line Items] | ||||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $ 22,700 | |||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 3 years 4 months 6 days | |||
Restricted Stock Units (RSUs) | ||||
Class of Stock [Line Items] | ||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 3 years 5 months 23 days | |||
Employee Stock | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for issuance (in shares) | 989,881 | |||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 1 year 2 months 1 day | |||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 4,400 | |||
Percentage of outstanding stock maximum | 1.00% | |||
Class A | ||||
Class of Stock [Line Items] | ||||
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Common stock par value (in usd per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock reserved for issuance (in shares) | 7,546,410 | |||
Class A | Employee Stock | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for issuance (in shares) | 500,000 | |||
Number of shares authorized | 7,500,000 | |||
Class B | ||||
Class of Stock [Line Items] | ||||
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Common stock par value (in usd per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Stockholders_ Equity and Stoc_4
Stockholders’ Equity and Stock Option Plans - Summary of Stock Option Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Number of Shares Underlying Outstanding Options | |||
Beginning balance (in shares) | 8,459,969 | ||
Options granted (in shares) | 657,066 | ||
Options exercised (in shares) | (278,412) | ||
Options canceled (in shares) | (6,343) | ||
Options expired (in shares) | (160) | ||
Ending balance (in shares) | 8,832,120 | 8,459,969 | |
Vested (in shares) | 5,551,331 | ||
Weighted-Average Exercise Price | |||
Beginning balance (in usd per share) | $ 2.53 | ||
Options granted (in usd per share) | 36.65 | ||
Options exercised (in usd per share) | 1.62 | ||
Options canceled (in usd per share) | 4.29 | ||
Options expired (in usd per share) | 0.26 | ||
Ending balance (in usd per share) | 5.09 | $ 2.53 | |
Vested (in usd per share) | $ 2.33 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual term (years) | 6 years 11 months 19 days | 6 years 9 months 29 days | |
Weighted average remaining contractual term vested (in years) | 5 years 9 months | ||
Aggregate intrinsic value, awards outstanding | $ 390,601 | $ 215,144 | |
Aggregate intrinsic value, vested | $ 260,855 |
Stockholders_ Equity and Stoc_5
Stockholders’ Equity and Stock Option Plans - Summary of Restricted Stock Units and Related Information (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Shares Underlying Outstanding Options | |
Unvested beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 227,792 |
Unvested ending balance (in shares) | shares | 227,792 |
Weighted-Average Exercise Price | |
Unvested beginning balance (in usd per share) | $ / shares | $ 0 |
Granted (in usd per share) | $ / shares | 39.47 |
Unvested ending balance (in usd per share) | $ / shares | $ 39.47 |
Stockholders_ Equity and Stoc_6
Stockholders’ Equity and Stock Option Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 3,165 | $ 495 |
Tax benefit from stock-based compensation | (251) | (43) |
Total stock-based compensation, net of tax effect | 2,914 | 452 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 168 | 10 |
Technology and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 481 | 74 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 1,161 | 180 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 1,355 | $ 231 |
Net Income Per Share Attribut_3
Net Income Per Share Attributable to Common Stockholders - Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income | $ 4,918 | $ 904 |
Denominator: | ||
Weighted average common shares outstanding – basic | 49,109,237 | 10,092,152 |
Net income per share attributable to common stockholders – basic: (in usd per share) | $ 0.10 | $ 0 |
Denominator: | ||
Weighted average common shares outstanding – basic | 49,109,237 | 10,092,152 |
Weighted average shares outstanding – diluted | 56,784,558 | 13,473,917 |
Net income per share attributable to common stockholders – diluted (in usd per share) | $ 90 | $ 0 |
Class A | ||
Numerator: | ||
Net income | $ 704,000 | $ 0 |
Less: Undistributed earnings allocated to participating securities | 0 | 0 |
Reallocation of net income attributable to common stockholders | (18,000) | 0 |
Net income attributable to common stockholders – basic | $ 686,000 | $ 0 |
Denominator: | ||
Weighted average common shares outstanding – basic | 6,853,805 | 0 |
Net income per share attributable to common stockholders – basic: (in usd per share) | $ 0.10 | $ 0 |
Numerator: | ||
Net income attributable to common stockholders - diluted | $ 613,000 | $ 0 |
Denominator: | ||
Weighted average common shares outstanding – basic | 6,853,805 | 0 |
Options to purchase common stock (in shares) | 228,868 | 0 |
Warrants to purchase common stock (in shares) | 0 | 0 |
Weighted average shares outstanding – diluted | 7,082,673 | 0 |
Net income per share attributable to common stockholders – diluted (in usd per share) | $ 0.09 | $ 0 |
Class B | ||
Numerator: | ||
Net income | $ 4,214,000 | $ 904,000 |
Less: Undistributed earnings allocated to participating securities | 0 | (904,000) |
Reallocation of net income attributable to common stockholders | 18,000 | 0 |
Net income attributable to common stockholders – basic | $ 4,232,000 | $ 0 |
Denominator: | ||
Weighted average common shares outstanding – basic | 42,255,432 | 10,092,152 |
Net income per share attributable to common stockholders – basic: (in usd per share) | $ 0.10 | $ 0 |
Numerator: | ||
Net income attributable to common stockholders - diluted | $ 4,305,000 | $ 0 |
Denominator: | ||
Weighted average common shares outstanding – basic | 42,255,432 | 10,092,152 |
Options to purchase common stock (in shares) | 7,446,453 | 3,367,216 |
Warrants to purchase common stock (in shares) | 0 | 14,549 |
Weighted average shares outstanding – diluted | 49,701,885 | 13,473,917 |
Net income per share attributable to common stockholders – diluted (in usd per share) | $ 0.09 | $ 0 |
Net Income Per Share Attribut_4
Net Income Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Class A | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Total excludable from net income per share attributable to common stockholders – diluted | 446,845 | 0 |
Class A | Options to purchase common stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Total excludable from net income per share attributable to common stockholders – diluted | 446,845 | 0 |
Class A | Common stock issuable upon conversion of convertible preferred stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Total excludable from net income per share attributable to common stockholders – diluted | 0 | 0 |
Class B | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Total excludable from net income per share attributable to common stockholders – diluted | 0 | 36,107,193 |
Class B | Options to purchase common stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Total excludable from net income per share attributable to common stockholders – diluted | 0 | 2,663,224 |
Class B | Common stock issuable upon conversion of convertible preferred stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Total excludable from net income per share attributable to common stockholders – diluted | 0 | 33,443,969 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 1,923 | $ 399 | $ 400 |
Effective income tax rate reconciliation, percent | 28.00% | 31.00% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 43,608 | $ 28,348 |
Total | 33,958 | 30,044 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 27,408 | 19,042 |
Total | 28,184 | 24,580 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 11,309 | 5,849 |
APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 4,194 | 2,941 |
Rest of the world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 697 | 516 |
Total | $ 5,774 | $ 5,464 |
401(k) Plan - Narrative (Detail
401(k) Plan - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Defined contribution plan, maximum annual contributions per employee, percent | 100.00% | |
Defined contribution plan, employer discretionary contribution amount | $ 0 | $ 0 |