Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | |
Title of 12(b) Security | Class A common stock, $0.0001 par value per share | |
Trading Symbol | PUBM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001422930 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 41,603,870 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,158,315 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 97,730 | $ 92,382 |
Marketable securities | 73,623 | 82,013 |
Accounts receivable, net | 291,385 | 314,299 |
Prepaid expenses and other current assets | 11,634 | 14,784 |
Total current assets | 474,372 | 503,478 |
Property, equipment and software, net | 61,915 | 71,156 |
Operating lease right-of-use assets | 21,768 | 26,206 |
Acquisition-related intangible assets, net | 6,259 | 8,299 |
Goodwill | 29,577 | 29,577 |
Deferred tax assets | 14,659 | 1,047 |
Other assets, non-current | 4,436 | 2,412 |
TOTAL ASSETS | 612,986 | 642,175 |
Current liabilities | ||
Accounts payable | 273,169 | 277,414 |
Accrued liabilities | 25,031 | 18,936 |
Operating lease liabilities, current | 5,667 | 5,676 |
Total current liabilities | 303,867 | 302,026 |
Operating lease liabilities, non-current | 16,809 | 20,915 |
Other liabilities, non-current | 3,736 | 7,046 |
TOTAL LIABILITIES | 324,412 | 329,987 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Preferred stock, $0.0001 par value per share, 10,000 shares authorized as of September 30, 2023 and December 31, 2022; No shares issued and outstanding as of September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, par value $0.0001 per share; 1,000,000 Class A shares authorized as of September 30, 2023 and December 31, 2022; 44,682 shares issued and 42,034 shares outstanding as of September 30, 2023; 43,452 shares issued and outstanding as of December 31, 2022; 1,000,000 Class B shares authorized as of September 30, 2023 and December 31, 2022; 12,314 shares issued and 9,174 shares outstanding as of September 30, 2023; 12,393 shares issued and 9,253 shares outstanding as of December 31, 2022 | 6 | 6 |
Treasury stock, at cost; 5,788 and 3,140 shares as of September 30, 2023 and December 31, 2022, respectively | (50,804) | (11,486) |
Additional paid-in capital | 221,205 | 195,677 |
Accumulated other comprehensive loss | (12) | (9) |
Retained earnings | 118,179 | 128,000 |
TOTAL STOCKHOLDERS’ EQUITY | 288,574 | 312,188 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 612,986 | $ 642,175 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock shares authorized | 10,000 | 10,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Treasury stock shares | 5,788 | 3,140 |
Common Class A | ||
Common stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 1,000,000 | 1,000,000 |
Common stock shares issued | 44,682 | 43,452 |
Common stock shares outstanding | 42,034 | 43,452 |
Common Class B | ||
Common stock par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 1,000,000 | 1,000,000 |
Common stock shares issued | 12,314 | 12,393 |
Common stock shares outstanding | 9,174 | 9,253 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Income Statement [Abstract] | |||||
Revenue | $ 63,677 | $ 64,500 | $ 182,414 | $ 182,084 | |
Cost of revenue | 26,091 | 21,591 | 75,021 | 58,557 | |
Gross profit | 37,586 | 42,909 | 107,393 | 123,527 | |
Operating expenses: | |||||
Technology and development | 6,634 | 5,080 | 19,881 | 14,928 | |
Sales and marketing | 19,513 | 16,087 | 62,450 | 50,755 | |
General and administrative | [1] | 12,010 | 12,120 | 43,439 | 33,847 |
Total operating expenses | 38,157 | 33,287 | 125,770 | 99,530 | |
Operating income (loss) | (571) | 9,622 | (18,377) | 23,997 | |
Interest income | 2,246 | 596 | 6,313 | 1,044 | |
Other income (expense), net | 210 | (5,494) | (476) | (4,389) | |
Income (loss) before income taxes | 1,885 | 4,724 | (12,540) | 20,652 | |
Provision for (benefit from) income taxes | 111 | 1,398 | (2,719) | 4,728 | |
Net income (loss) | $ 1,774 | $ 3,326 | $ (9,821) | $ 15,924 | |
Earnings Per Share [Abstract] | |||||
Basic net income (loss) per share of Class A and Class B stock (in usd per share) | $ 0.03 | $ 0.06 | $ (0.19) | $ 0.31 | |
Diluted net income (loss) per share of Class A and Class B stock (in usd per share) | $ 0.03 | $ 0.06 | $ (0.19) | $ 0.28 | |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: | |||||
Basic (in shares) | 51,638 | 52,436 | 52,132 | 52,169 | |
Diluted (in shares) | 55,979 | 56,944 | 52,132 | 56,895 | |
[1]Amounts for the nine months ended September 30, 2023 include a provision for bad debt of $5.7 million relating to a Demand Side Platform (“DSP”) buyer of our platform that filed for Chapter 11 bankruptcy. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||
Provision for doubtful accounts | $ 5,675 | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Other Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,774 | $ 3,326 | $ (9,821) | $ 15,924 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on marketable securities, net of tax | 20 | 166 | (3) | (185) |
Comprehensive income (loss) | $ 1,794 | $ 3,492 | $ (9,824) | $ 15,739 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2021 | 51,855 | |||||
Beginning balance at Dec. 31, 2021 | $ 257,180 | $ 6 | $ (11,486) | $ 169,401 | $ (36) | $ 99,295 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 5,469 | 5,469 | ||||
Exercise of stock options (in shares) | 131 | |||||
Exercise of stock options | 481 | 481 | ||||
Issuance of common stock related to RSU vesting (in shares) | 25 | |||||
Other comprehensive income (loss) | (203) | (203) | ||||
Net income (loss) | 4,779 | 4,779 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 52,011 | |||||
Ending balance at Mar. 31, 2022 | 267,706 | $ 6 | (11,486) | 175,351 | (239) | 104,074 |
Beginning balance (in shares) at Dec. 31, 2021 | 51,855 | |||||
Beginning balance at Dec. 31, 2021 | 257,180 | $ 6 | (11,486) | 169,401 | (36) | 99,295 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 15,924 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 52,509 | |||||
Ending balance at Sep. 30, 2022 | 292,603 | $ 6 | (11,486) | 189,085 | (221) | 115,219 |
Beginning balance (in shares) at Mar. 31, 2022 | 52,011 | |||||
Beginning balance at Mar. 31, 2022 | 267,706 | $ 6 | (11,486) | 175,351 | (239) | 104,074 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 5,780 | 5,780 | ||||
Exercise of stock options (in shares) | 96 | |||||
Exercise of stock options | 357 | 357 | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 142 | |||||
Issuance of common stock related to employee stock purchase plan | 2,402 | 2,402 | ||||
Issuance of common stock related to RSU vesting (in shares) | 90 | |||||
Other comprehensive income (loss) | (148) | (148) | ||||
Net income (loss) | 7,819 | 7,819 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 52,338 | |||||
Ending balance at Jun. 30, 2022 | 283,916 | $ 6 | (11,486) | 183,890 | (387) | 111,893 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 4,973 | 4,973 | ||||
Exercise of stock options (in shares) | 78 | |||||
Exercise of stock options | 222 | 222 | ||||
Issuance of common stock related to RSU vesting (in shares) | 93 | |||||
Other comprehensive income (loss) | 166 | 166 | ||||
Net income (loss) | 3,326 | 3,326 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 52,509 | |||||
Ending balance at Sep. 30, 2022 | 292,603 | $ 6 | (11,486) | 189,085 | (221) | 115,219 |
Beginning balance (in shares) at Dec. 31, 2022 | 52,705 | |||||
Beginning balance at Dec. 31, 2022 | 312,188 | $ 6 | (11,486) | 195,677 | (9) | 128,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 7,606 | 7,606 | ||||
Exercise of stock options (in shares) | 109 | |||||
Exercise of stock options | 314 | 314 | ||||
Repurchase of shares (in shares) | (587) | |||||
Repurchase of shares | (7,898) | (7,898) | ||||
Issuance of common stock related to RSU vesting (in shares) | 96 | |||||
Other comprehensive income (loss) | 17 | 17 | ||||
Net income (loss) | (5,871) | (5,871) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 52,323 | |||||
Ending balance at Mar. 31, 2023 | 306,356 | $ 6 | (19,384) | 203,597 | 8 | 122,129 |
Beginning balance (in shares) at Dec. 31, 2022 | 52,705 | |||||
Beginning balance at Dec. 31, 2022 | $ 312,188 | $ 6 | (11,486) | 195,677 | (9) | 128,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 468 | |||||
Net income (loss) | $ (9,821) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 51,208 | |||||
Ending balance at Sep. 30, 2023 | 288,574 | $ 6 | (50,804) | 221,205 | (12) | 118,179 |
Beginning balance (in shares) at Mar. 31, 2023 | 52,323 | |||||
Beginning balance at Mar. 31, 2023 | 306,356 | $ 6 | (19,384) | 203,597 | 8 | 122,129 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 7,924 | 7,924 | ||||
Exercise of stock options (in shares) | 281 | |||||
Exercise of stock options | 623 | 623 | ||||
Repurchase of shares (in shares) | (999) | |||||
Repurchase of shares | (15,582) | (15,582) | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 65 | |||||
Issuance of common stock related to employee stock purchase plan | 971 | 971 | ||||
Issuance of common stock related to RSU vesting (in shares) | 272 | |||||
Other comprehensive income (loss) | (40) | (40) | ||||
Net income (loss) | (5,724) | (5,724) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 51,942 | |||||
Ending balance at Jun. 30, 2023 | 294,528 | $ 6 | (34,966) | 213,115 | (32) | 116,405 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 7,817 | 7,817 | ||||
Exercise of stock options (in shares) | 78 | |||||
Exercise of stock options | 273 | 273 | ||||
Repurchase of shares (in shares) | (1,062) | |||||
Repurchase of shares | (15,838) | (15,838) | ||||
Issuance of common stock related to RSU vesting (in shares) | 250 | |||||
Other comprehensive income (loss) | 20 | 20 | ||||
Net income (loss) | 1,774 | 1,774 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 51,208 | |||||
Ending balance at Sep. 30, 2023 | $ 288,574 | $ 6 | $ (50,804) | $ 221,205 | $ (12) | $ 118,179 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ (9,821) | $ 15,924 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 33,731 | 23,587 |
Unrealized loss and impairment of equity investment | 0 | 5,948 |
Stock-based compensation | 21,525 | 15,182 |
Provision for doubtful accounts | 5,675 | 0 |
Deferred income taxes | (14,185) | (3,949) |
Accretion of discount on marketable securities | (3,061) | (170) |
Non-cash operating lease expense | 4,605 | 4,292 |
Other | 3 | 98 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8,367 | 12,626 |
Prepaid expenses and other assets | 3,501 | (1,354) |
Accounts payable | 4,141 | 4,013 |
Accrued liabilities | 3,214 | (4,806) |
Operating lease liabilities | (4,282) | (3,985) |
Other liabilities, non-current | (966) | 448 |
Net cash provided by operating activities | 52,447 | 67,854 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (5,424) | (26,961) |
Capitalized software development costs | (13,725) | (9,597) |
Purchases of marketable securities | (76,932) | (100,113) |
Proceeds from sales of marketable securities | 18,873 | 0 |
Proceeds from maturities of marketable securities | 69,500 | 63,200 |
Business combination, net of cash acquired | 0 | (28,085) |
Net cash used in investing activities | (7,708) | (101,556) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock for employee stock purchase plan | 971 | 2,402 |
Proceeds from exercise of stock options | 1,210 | 1,060 |
Principal payments on finance lease obligations | (93) | (88) |
Payments to acquire treasury stock | (41,479) | 0 |
Net cash provided by (used in) financing activities | (39,391) | 3,374 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5,348 | (30,328) |
CASH AND CASH EQUIVALENTS - Beginning of period | 92,382 | 82,505 |
CASH AND CASH EQUIVALENTS - End of period | 97,730 | 52,177 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Income taxes paid | 11,518 | 7,564 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION: | ||
Stock-based compensation capitalized as internal-use software costs | 1,822 | 1,040 |
Property and equipment included in accounts payable and accrued liabilities | 1,229 | 7,550 |
Capitalized software costs included in accounts payable and accrued liabilities | 2,287 | 1,491 |
Business combination purchase consideration - indemnification claims holdback | $ 2,148 | $ 2,597 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of BusinessPubMatic, Inc. (together with its subsidiaries, the “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 advertisers 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 | 9 Months Ended |
Sep. 30, 2023 | |
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 2023, for example, refer to the fiscal year ending December 31, 2023. 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, 2023 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, 2022, as filed with the SEC on February 28, 2023 (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. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period presentation. 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 September 30, 2023, may result in actual outcomes that differ from those contemplated by the Company’s assumptions and estimates. Impairment of Equity Investment During the three months ended September 30, 2022, the Company concluded there was no longer a readily determinable fair value for its equity investment because the shares of the issuer were no longer publicly quoted pursuant to SEC Rule 15c2-11. The Company evaluated the measurement guidance for non-marketable equity securities and performed a qualitative assessment of various impairment indicators and concluded the equity investment was impaired as of September 30, 2022. As a result, the Company recognized an impairment loss equal to the difference between the fair value of the investment and its carrying amount. An impairment charge of $6.4 million was recorded within other income (expense), net in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022. Concentration of Revenue and Accounts Receivable The Company defines its revenue concentration based on revenue recognized from individual publishers. For the three months ended September 30, 2023 and 2022, one publisher represented less than 10% and 13%, respectively, and less than 10% and 13% for the nine months ended September 30, 2023 and 2022, respectively, of the Company’s revenue. As of September 30, 2023, two buyers accounted for 32% and 18%, respectively, of accounts receivable. As of December 31, 2022, three buyers accounted for 33%, 15%, and 11%, respectively, of accounts receivable. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount, are unsecured, and do not bear interest. The allowance for credit losses is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for credit losses is determined based on historical collection experience and the review in each period of the status of the then outstanding accounts receivable, while taking into consideration current customer information, collection history, and other relevant data. Account balances are written off against the allowance when the Company believes it is probable the receivable will not be recovered. The following table presents the changes in the allowance for credit losses (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Allowance for credit losses, beginning balance $ 14,845 $ 1,765 $ 1,765 $ 1,765 Increase in provision for expected credit losses — — 14,547 — Write-offs — — (1,467) — Allowance for credit losses, ending balance $ 14,845 $ 1,765 $ 14,845 $ 1,765 During the nine months ended September 30, 2023, the provision for expected credit losses associated with accounts receivable increased by $14.5 million relating to uncollectible receivables for a DSP buyer of the Company’s platform that filed for Chapter 11 bankruptcy on June 30, 2023. Of the total uncollectible receivables from the DSP buyer of $14.5 million, $8.8 million was subject to chargeback to publishers of the Company and recorded as contra payable to publishers related to expected recoveries. The result was $5.7 million of bad debt expense for the nine months ended September 30, 2023. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Under previous GAAP, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. The Company adopted ASU 2021-08 as of January 1, 2023. The adoption of ASU 2021-08 did not have a material impact on the Company’s condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables set 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): September 30, 2023 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 67,344 $ — $ — $ 67,344 Certificates of deposit — 11,960 — 11,960 Cash equivalents 67,344 11,960 — 79,304 Commercial paper — 38,903 — 38,903 Agency debt securities — 14,906 — 14,906 U.S. Treasury and government debt securities — 19,814 — 19,814 Marketable securities — 73,623 — 73,623 Total financial assets $ 67,344 $ 85,583 $ — $ 152,927 December 31, 2022 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 48,884 $ — $ — $ 48,884 Certificates of deposit — 4,169 — 4,169 Cash equivalents 48,884 4,169 — 53,053 Commercial paper — 63,483 — 63,483 Agency debt securities — 5,778 — 5,778 U.S. Treasury and government debt securities — 12,752 — 12,752 Marketable securities — 82,013 — 82,013 Total financial assets $ 48,884 $ 86,182 $ — $ 135,066 The Company’s financial assets consist of Level 1 and 2 assets. The Company had no Level 3 assets or liabilities for the periods presented. The Company classifies its cash equivalents and marketable securities within Level 1 or Level 2 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 | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Marketable Securities The following tables summarize the Company’s marketable securities by significant investment categories (in thousands): September 30, 2023 Amortized Cost Unrealized Gain Unrealized Loss Fair Value Commercial paper $ 38,903 $ — $ — $ 38,903 Agency debt securities 14,911 — (5) 14,906 U.S. Treasury and government debt securities 19,821 2 (9) 19,814 Total $ 73,635 $ 2 $ (14) $ 73,623 December 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Fair Value Commercial paper $ 63,483 $ — $ — $ 63,483 Agency debt securities 5,762 17 — 5,779 U.S. Treasury and government debt securities 12,777 2 (28) 12,751 Total $ 82,022 $ 19 $ (28) $ 82,013 The remaining contractual maturity of all marketable securities was within one year as of September 30, 2023 and December 31, 2022. Realized gains and losses were not material for the nine months ended September 30, 2023 and 2022. As of September 30, 2023 and 2022, 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 consisted of the following (in thousands): September 30, December 31, Internal-use software $ 56,859 $ 40,794 Network hardware, computer equipment and software 134,066 129,212 Leasehold improvements 4,773 4,026 Furniture and fixtures 2,250 2,087 Property, equipment and software, gross 197,948 176,119 Less: accumulated depreciation and amortization (136,033) (104,963) Total property, equipment and software, net $ 61,915 $ 71,156 Depreciation and amortization expense related to property, equipment, and software (excluding amortization of internal-use software) was $7.2 million and $6.4 million for the three months ended September 30, 2023 and 2022, respectively, and $21.8 million and $16.3 million for the nine months ended September 30, 2023 and 2022, respectively. The Company capitalized $5.0 million and $3.5 million in software development costs during the three months ended September 30, 2023 and 2022, respectively, and $15.9 million and $10.3 million for the nine months ended September 30, 2023 and 2022, respectively. Amortization expense of internal-use software was $3.8 million and $2.6 million during the three months ended September 30, 2023 and 2022, respectively, and $9.9 million and $7.2 million for the nine months ended September 30, 2023 and 2022, respectively. These costs are included within cost of revenue in the condensed consolidated statements of operations. The Company did not recognize any impairment charges on its long-lived assets during the nine months ended September 30, 2023 and 2022, respectively. Accounts Payable Accounts payable consisted of the following (in thousands): September 30, December 31, Payable to publishers $ 249,221 $ 266,506 Trade and other payables 23,948 10,908 Total accounts payable $ 273,169 $ 277,414 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation $ 15,282 $ 14,587 Accrued and other current liabilities 9,749 4,349 Total accrued liabilities $ 25,031 $ 18,936 |
Senior Secured Credit Facilitie
Senior Secured Credit Facilities Agreement | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Senior Secured Credit Facilities Agreement | Senior Secured Credit Facilities Agreement On October 17, 2022, the Company entered into a Senior Secured Credit Facilities Credit Agreement (the “Credit Agreement”) with the several lenders parties thereto (the “Lenders”), and Silicon Valley Bank (“SVB”), as administrative agent, lead arranger, issuing lender, and swingline lender. The Credit Agreement matures on October 17, 2027. The Credit Agreement provides a revolving credit facility in an aggregate principal amount of $110.0 million (“the Revolving Credit Facility”), including a $25.0 million letter of credit sub-facility and a $25.0 million swingline sub-facility. The Company’s obligations under the Revolving Credit Facility and the letter of credit sub-facility (described in Note 9) with SVB are secured by substantially all of its assets excluding its intellectual property. The Company may, subject to certain customary conditions, on one or more occasions increase commitments under the Revolving Credit Facility in an amount not to exceed $90.0 million in the aggregate (the “Incremental Facility”). Each Lender will have discretion to determine whether it will participate in any Incremental Facility. Borrowings under the Revolving Credit Facility will accrue interest at rates equal, at the Company’s election, to (i) the applicable secured overnight financing rate (“SOFR”), plus the applicable margin for such loans, or (ii) the alternate base rate (“ABR”), which is defined as the highest of (a) the prime rate in effect from time to time, (b) the federal funds effective rate in effect from time to time plus 0.50%, and (c) the adjusted term SOFR for a one (1) month tenor in effect from time to time plus 1.0%, plus the applicable margin for such loans. The applicable margin for borrowings bearing interest on the SOFR ranges from 2.00% to 2.75%, and the applicable margin for borrowings bearing interest based on the ABR ranges from 1.00% to 1.75%. As of September 30, 2023, the applicable interest rate under the revolving credit facility was 7.52%. The Company will pay a quarterly commitment fee during the term of the Credit Agreement for the non-use of available funds ranging from 0.25% to 0.35%. In addition, the Credit Agreement provides a mechanism to determine a successor reference rate to the applicable reference rate if, among other things, the applicable reference rate becomes unavailable or is generally replaced as a benchmark interest rate. The Credit Agreement contains customary representations and warranties as well as customary affirmative and negative covenants. Negative covenants include, among others, limitations on incurrence of indebtedness, liens, disposition of property and investments by the Company and its subsidiaries. In addition, the Credit Agreement requires the Company to maintain certain interest coverage, leverage and senior leverage ratios. To date, the Company is in compliance with the affirmative and negative covenants. The Credit Agreement contains customary events of default. Upon the occurrence and during the continuance of an event of default, the Lenders may declare the outstanding advances and all other obligations under the Credit Agreement immediately due and payable. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the right-of-use assets and interest expense for the outstanding lease liabilities, and results in a front-loaded expense pattern over the lease term. Short-term and variable lease costs are not material to the Company’s condensed consolidated financial statements. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 1,882 $ 1,759 $ 5,550 $ 5,059 Finance lease cost 47 47 142 144 Total lease cost $ 1,929 $ 1,806 $ 5,692 $ 5,203 As of September 30, 2023, a weighted average discount rate of 3.26% and 2.24% has been applied to the remaining operating and finance lease payments, respectively, to calculate the lease liabilities included within the condensed consolidated balance sheets. The weighted average remaining lease term of operating and finance leases is 4.0 and 4.5 years, respectively, as of September 30, 2023. As of September 30, 2023, the maturities of lease liabilities under operating and finance leases were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2023 $ 1,665 $ 35 $ 1,700 2024 6,565 145 6,710 2025 5,129 149 5,278 2026 5,339 153 5,492 2027 4,254 158 4,412 Thereafter 993 41 1,034 Total minimum lease payments 23,945 681 24,626 Less: imputed interest (1,469) (33) (1,502) Total present value of lease liabilities $ 22,476 $ 648 $ 23,124 |
Leases | Leases Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the right-of-use assets and interest expense for the outstanding lease liabilities, and results in a front-loaded expense pattern over the lease term. Short-term and variable lease costs are not material to the Company’s condensed consolidated financial statements. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 1,882 $ 1,759 $ 5,550 $ 5,059 Finance lease cost 47 47 142 144 Total lease cost $ 1,929 $ 1,806 $ 5,692 $ 5,203 As of September 30, 2023, a weighted average discount rate of 3.26% and 2.24% has been applied to the remaining operating and finance lease payments, respectively, to calculate the lease liabilities included within the condensed consolidated balance sheets. The weighted average remaining lease term of operating and finance leases is 4.0 and 4.5 years, respectively, as of September 30, 2023. As of September 30, 2023, the maturities of lease liabilities under operating and finance leases were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2023 $ 1,665 $ 35 $ 1,700 2024 6,565 145 6,710 2025 5,129 149 5,278 2026 5,339 153 5,492 2027 4,254 158 4,412 Thereafter 993 41 1,034 Total minimum lease payments 23,945 681 24,626 Less: imputed interest (1,469) (33) (1,502) Total present value of lease liabilities $ 22,476 $ 648 $ 23,124 |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business CombinationOn September 16, 2022, the Company acquired all outstanding stock of ConsultMates, Inc. (dba “Martin”), a media measurement and reporting platform, for $30.8 million. The acquisition is in response to growing demand from the Company’s buy-side customers for enhanced tools to take advantage of the Company’s global omnichannel inventory, including market-leading addressability solutions and innovative technology to enable supply path optimization. The assets acquired and liabilities assumed were recorded at fair value. The purchase price excludes $14.2 million of post-acquisition cash compensation arrangements for certain key acquired employees to be paid ratably over three years following the closing of the acquisition (subject to forfeiture upon termination). The purchase price was attributed to $7.9 million of developed technology intangible assets, $1.0 million of customer relationship intangible assets, $23.3 million of goodwill, $1.1 million of deferred tax liabilities, and $0.3 million of net liabilities assumed. The goodwill recognized was primarily attributable to the assembled workforce and the expected synergies from integrating Martin’s technology into the Company’s platform. Goodwill is not expected to be deductible for tax purposes. The financial results of Martin are included in the Company’s condensed consolidated financial statements from the date of acquisition. Separate operating results and pro forma results of operations for Martin have not been presented as the effect of this acquisition was not material to the Company’s financial results. |
Acquisition-related Intangible
Acquisition-related Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisition-related Intangible Assets, Net | Acquisition-related Intangible Assets, Net Acquisition-related Intangible Assets, Net Acquisition-related intangible assets, net consisted of the following (in thousands): September 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 7,900 $ 1,641 $ 6,259 Customer relationships 1,000 1,000 — Total acquisition-related intangible assets $ 8,900 $ 2,641 $ 6,259 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 7,900 $ 456 $ 7,444 Customer relationships 1,000 145 855 Total acquisition-related intangible assets $ 8,900 $ 601 $ 8,299 The weighted average remaining useful life of developed technology was 4 years as of September 30, 2023. Amortization expense related to acquisition-related intangibles was $0.4 million and $0.1 million for the three months ended September 30, 2023 and 2022, respectively, and $2.0 million and $0.1 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, estimated future amortization expense for acquisition-related intangible assets was as follows (in thousands): Remainder of 2023 $ 395 2024 1,580 2025 1,580 2026 1,580 2027 1,124 Total estimated future amortization expense for acquisition-related intangible assets $ 6,259 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations The Company’s purchase obligations primarily relate to minimum contractual payments due to data center providers. During the three and nine months ended September 30, 2023, there were no material changes to the Company’s non-cancelable purchase obligations disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Letters of Credit As of September 30, 2023 and December 31, 2022, the Company had two irrevocable letters of credit outstanding related to non-cancelable facilities leases in the amounts of $3.5 million and $0.5 million, with annual automatic renewal and final expiration dates in July 2028 and April 2025, respectively. Legal Matters From time to time, the Company is or may be involved in various claims and other legal matters arising in the normal course of business. The Company records an accrual for a liability relating to claims and other legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Any such accruals are reviewed at least quarterly and adjusted for the impacts of negotiations, rulings, settlements, and other information or events pertaining to a particular matter, or on the advice of legal counsel. To date, the Company has not incurred a material loss, or a material loss in excess of a recorded accrual, with respect to any claims and other legal matters arising in the normal course of business. However, the outcomes of claims and other legal matters are inherently unpredictable and subject to significant uncertainties. If the Company subsequently concludes that 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. Indemnification |
Stockholders_ Equity and Stock
Stockholders’ Equity and Stock Option Plans | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity and Equity Incentive Plans | Stockholders’ Equity and Equity Incentive Plans Share Repurchases In February 2023, the Company’s board of directors authorized the Company to repurchase up to $75 million of its Class A common stock (“2023 Repurchase Program”). As of September 30, 2023, $35.9 million remains available for repurchases. Shares are repurchased in a manner deemed in the best interest of the Company and its stockholders, dependent upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations. In accordance with the authorization of the Company’s board of directors, during the three and nine months ended September 30, 2023, the Company repurchased 1,061,762 and 2,647,958 aggregate shares of Class A common stock for $15.6 million and $39.1 million, respectively. Repurchases are executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, in accordance with Rule 10b-18 and/or Rule 10b5-1 of the Exchange Act. The 2023 Repurchase Program is scheduled to terminate on December 31, 2024. Equity Incentive Plans The Company maintains 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 stock units (“DSUs”) performance awards, and stock bonus awards. As of September 30, 2023, the Company has reserved 6,679,859 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. No new awards were issued under the Company’s prior 2006 Plan or 2017 Plan (“Prior Plans”) after the effective date of the 2020 Plan. To the extent outstanding awards under the 2006 Plan and the 2017 Plan are forfeited, expire 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. Stock Options The following table summarizes stock option activity and related information under the Company’s equity incentive plans: Stock Options Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2022 6,476 $ 7.38 6.10 $ 55,516 Options granted 1,375 15.33 Options exercised (468) 2.59 Options canceled (166) 16.67 Options expired (16) 32.99 Outstanding as of September 30, 2023 7,201 $ 8.94 6.03 $ 46,903 Vested and exercisable as of September 30, 2023 5,453 $ 6.25 5.20 $ 44,813 As of September 30, 2023, unrecognized stock-based compensation of $17.1 million related to unvested stock options will be recognized on a straight-line basis over a weighted average period of 2.42 years. Restricted Stock Units The following table summarizes RSU activity and related information under the Company’s 2020 Plan: RSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested as of December 31, 2022 1,582 $ 26.49 Granted 2,357 $ 15.97 Vested (618) $ 22.67 Canceled or forfeited (313) $ 18.54 Unvested as of September 30, 2023 3,008 $ 19.86 As of September 30, 2023, unrecognized stock-based compensation of $54.2 million related to unvested RSUs will be recognized on a straight-line basis over a weighted average period of 2.82 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 Company’s initial public offering. 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 issuance under the ESPP will increase automatically on January 1st of each of the first ten calendar years during the term of the ESPP by the number of shares equal to the lesser of (a) 1% of the total outstanding shares of all classes of the Company’s common stock as of the immediately preceding December 31, and (b) such number of shares of common stock as determined by the Company’s board of directors. The aggregate number of shares issued over the term of the ESPP may not exceed 7,500,000 shares of Class A common stock. As of September 30, 2023, the Company had reserved 464,796 shares of its Class A common stock for issuance under the ESPP. Under the 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 85% of the lesser of: (a) the fair market value on the offering date or (b) the fair market value on the purchase date. The ESPP provides for, at maximum, 27 month offering periods and each offering period may consist of one or more six-month purchase periods, whereby the latest offering period commenced on June 1, 2022, and the offering periods thereafter consist of two six-month purchase periods ending May 31, 2023. As of September 30, 2023, $0.7 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 liabilities. For the nine months ended September 30, 2023, there were 65,092 shares of our Class A common stock purchased under the ESPP. As of September 30, 2023, unrecognized stock-based compensation expense related to the ESPP was $0.7 million, which is expected to be recognized over a weighted-average period of 0.67 years. Stock-Based Compensation Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 387 $ 256 $ 1,089 $ 861 Technology and development 1,112 683 3,209 2,467 Sales and marketing 2,550 1,735 7,873 5,740 General and administrative 3,151 1,981 9,354 6,114 Total stock-based compensation expense 7,200 4,655 21,525 15,182 Tax benefit from stock-based compensation (1,397) (1,245) (4,105) (2,951) Total stock-based compensation expense, net of tax effect $ 5,803 $ 3,410 $ 17,420 $ 12,231 |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | Net Income (Loss) Per Share Attributable to Common Stockholders The Company has two classes of common stock, Class A and Class B. Basic and diluted earnings per share (“EPS”) attributable to common stockholders for Class A and Class B common stock were the same because they were entitled to the same liquidation and dividend rights. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income (loss) attributable to common stockholders – basic $ 1,774 $ 3,326 $ (9,821) $ 15,924 Denominator: Weighted average shares outstanding – basic 51,638 52,436 52,132 52,169 Options to purchase common stock 4,000 4,489 — 4,701 Restricted stock 222 19 — 10 Employee stock purchase plan shares 119 — — 15 Weighted average shares outstanding – diluted 55,979 56,944 52,132 56,895 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.06 $ (0.19) $ 0.28 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Options to purchase common stock 2,269 1,060 2,134 1,008 Unvested restricted stock units 669 1,284 1,337 1,096 ESPP — 134 50 66 Total common stock equivalents excluded from net income per share attributable to common stockholders – diluted 2,938 2,478 3,521 2,170 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate ("AETR") for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. The discrete effective tax rate method has been used to calculate taxes for the fiscal three and nine months ended September 30, 2023. The Company has determined that since small changes in estimated “ordinary” income would result in significant changes in the estimated AETR, the historical method would not provide a reliable estimate for the fiscal three and nine months ended September 30, 2023. The Company recorded a provision for income taxes of $0.1 million and $1.4 million for the three months ended September 30, 2023 and 2022, respectively, and an income tax benefit of $2.7 million and provision for income taxes of $4.7 million for the nine months ended September 30, 2023 and 2022, respectively. The effective income tax rate was 6% and 30% for the three months ended September 30, 2023 and 2022, respectively, and 22% and 23% for the nine months ended September 30, 2023 and 2022, respectively. The income tax provision for the three months ended September 30, 2023 is related to the net tax benefit primarily related to the 2022 federal tax provision to return adjustments resulting from guidance under the Internal Revenue Service notice 2023-63 and the requirement to capitalize and amortize certain research and development costs under the U.S. Tax Cuts and Jobs Act for 2022 and 2023 tax years, an increase in research tax credits, offset by a decrease in the GILTI provision. The income tax benefit for the nine months ended September 30, 2023 is mainly from foreign-derived intangible income (FDII), research tax credit, and 2022 federal tax provision to return adjustments that were classified as a change in estimate, offset by an increase in tax expense primarily related to nondeductible stock-based compensation, and Section 162(m) limitation on the tax deductibility of officers’ compensation. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following table presents total revenue by geographic area based on the publisher’s billing address (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 38,077 $ 40,780 $ 108,608 $ 111,826 EMEA 19,686 16,525 57,345 48,210 APAC 4,655 6,456 13,117 19,352 Rest of the world 1,259 739 3,344 2,696 Total $ 63,677 $ 64,500 $ 182,414 $ 182,084 The following table presents long-lived assets, net, which consist primarily of property and equipment and operating lease right-of-use assets, by geographic area (in thousands): September 30, December 31, United States $ 69,240 $ 80,021 Rest of the world 14,443 17,341 Total $ 83,683 $ 97,362 |
401(k) Plan
401(k) Plan | 9 Months Ended |
Sep. 30, 2023 | |
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 $1.0 million and $0.9 million in matching contributions to the 401(k) Plan for the nine months ended September 30, 2023 and 2022 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income (loss) | $ 1,774 | $ (5,724) | $ (5,871) | $ 3,326 | $ 7,819 | $ 4,779 | $ (9,821) | $ 15,924 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Amarl Goel [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | In the third quarter of 2023, the following trading plans were adopted or terminated: Trading Arrangement Name Title Action Date Rule 10b5-1* Non-Rule 10b5-1** Total Shares to be Sold Expiration Date Amar Goel (2) Chief Innovation Officer Adopted 9/1/2023 X (1) 174,110 7/9/2024 * Intended to satisfy the affirmative defense of Rule 10b5-1(c). ** Not intended to satisfy the affirmative defense of Rule 10b5-1(c). (1) The 10b5-1 plan included a representation from the officer to the broker administering the plan that they were not in possession of any material nonpublic information regarding the Company or the securities subject to the plan. A similar representation was made to the Company in connection with the adoption of the plan under the Company’s insider trading policy. Those representations were made as of the date of adoption of the 10b5-1 plan, and speak only as of that date. In making those representations, there is no assurance with respect to any material non-public information of which the officer was unaware, or with respect to any material non-public information acquired by the officer or the Company after the date of the representation. (2) The aggregate number of RSU Shares that will be available for sale under the Plan is not yet determinable because the shares available will be net of shares sold to satisfy tax withholding obligations that arise in connection with the vesting and settlement of such RSU awards. As such, for purposes of this disclosure, the shares included in this table reflect the aggregate maximum number of shares underlying Mr. Goel's RSUs without excluding the shares that will be sold to satisfy the tax withholding obligations in addition to shares held in Trust accounts. | |
Name | Amar Goel (2) | |
Title | Chief Innovation Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 9/1/2023 | |
Arrangement Duration | 311 days | |
Aggregate Available | 174,110 | 174,110 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period presentation. |
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 September 30, 2023, may result in actual outcomes that differ from those contemplated by the Company’s assumptions and estimates. |
Impairment of Equity Investment | Impairment of Equity Investment During the three months ended September 30, 2022, the Company concluded there was no longer a readily determinable fair value for its equity investment because the shares of the issuer were no longer publicly quoted pursuant to SEC Rule 15c2-11. The Company evaluated the measurement guidance for non-marketable equity securities and performed a qualitative assessment of various impairment indicators and concluded the equity investment was impaired as of September 30, 2022. As a result, the Company recognized an impairment loss equal to the difference between the fair value of the investment and its carrying amount. An impairment charge of $6.4 million was recorded within other income (expense), net in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022. |
Concentration of Revenue and Accounts Receivable | Concentration of Revenue and Accounts ReceivableThe Company defines its revenue concentration based on revenue recognized from individual publishers |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Under previous GAAP, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. The Company adopted ASU 2021-08 as of January 1, 2023. The adoption of ASU 2021-08 did not have a material impact on the Company’s condensed consolidated financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table presents the changes in the allowance for credit losses (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Allowance for credit losses, beginning balance $ 14,845 $ 1,765 $ 1,765 $ 1,765 Increase in provision for expected credit losses — — 14,547 — Write-offs — — (1,467) — Allowance for credit losses, ending balance $ 14,845 $ 1,765 $ 14,845 $ 1,765 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables set 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): September 30, 2023 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 67,344 $ — $ — $ 67,344 Certificates of deposit — 11,960 — 11,960 Cash equivalents 67,344 11,960 — 79,304 Commercial paper — 38,903 — 38,903 Agency debt securities — 14,906 — 14,906 U.S. Treasury and government debt securities — 19,814 — 19,814 Marketable securities — 73,623 — 73,623 Total financial assets $ 67,344 $ 85,583 $ — $ 152,927 December 31, 2022 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 48,884 $ — $ — $ 48,884 Certificates of deposit — 4,169 — 4,169 Cash equivalents 48,884 4,169 — 53,053 Commercial paper — 63,483 — 63,483 Agency debt securities — 5,778 — 5,778 U.S. Treasury and government debt securities — 12,752 — 12,752 Marketable securities — 82,013 — 82,013 Total financial assets $ 48,884 $ 86,182 $ — $ 135,066 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Debt Securities, Available-for-sale | The following tables summarize the Company’s marketable securities by significant investment categories (in thousands): September 30, 2023 Amortized Cost Unrealized Gain Unrealized Loss Fair Value Commercial paper $ 38,903 $ — $ — $ 38,903 Agency debt securities 14,911 — (5) 14,906 U.S. Treasury and government debt securities 19,821 2 (9) 19,814 Total $ 73,635 $ 2 $ (14) $ 73,623 December 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Fair Value Commercial paper $ 63,483 $ — $ — $ 63,483 Agency debt securities 5,762 17 — 5,779 U.S. Treasury and government debt securities 12,777 2 (28) 12,751 Total $ 82,022 $ 19 $ (28) $ 82,013 |
Property, Plant and Equipment | Property, equipment and software, net consisted of the following (in thousands): September 30, December 31, Internal-use software $ 56,859 $ 40,794 Network hardware, computer equipment and software 134,066 129,212 Leasehold improvements 4,773 4,026 Furniture and fixtures 2,250 2,087 Property, equipment and software, gross 197,948 176,119 Less: accumulated depreciation and amortization (136,033) (104,963) Total property, equipment and software, net $ 61,915 $ 71,156 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable consisted of the following (in thousands): September 30, December 31, Payable to publishers $ 249,221 $ 266,506 Trade and other payables 23,948 10,908 Total accounts payable $ 273,169 $ 277,414 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation $ 15,282 $ 14,587 Accrued and other current liabilities 9,749 4,349 Total accrued liabilities $ 25,031 $ 18,936 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 1,882 $ 1,759 $ 5,550 $ 5,059 Finance lease cost 47 47 142 144 Total lease cost $ 1,929 $ 1,806 $ 5,692 $ 5,203 |
Lessee, Operating Lease, Liability, Maturity | As of September 30, 2023, the maturities of lease liabilities under operating and finance leases were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2023 $ 1,665 $ 35 $ 1,700 2024 6,565 145 6,710 2025 5,129 149 5,278 2026 5,339 153 5,492 2027 4,254 158 4,412 Thereafter 993 41 1,034 Total minimum lease payments 23,945 681 24,626 Less: imputed interest (1,469) (33) (1,502) Total present value of lease liabilities $ 22,476 $ 648 $ 23,124 |
Finance Lease, Liability, Fiscal Year Maturity | As of September 30, 2023, the maturities of lease liabilities under operating and finance leases were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2023 $ 1,665 $ 35 $ 1,700 2024 6,565 145 6,710 2025 5,129 149 5,278 2026 5,339 153 5,492 2027 4,254 158 4,412 Thereafter 993 41 1,034 Total minimum lease payments 23,945 681 24,626 Less: imputed interest (1,469) (33) (1,502) Total present value of lease liabilities $ 22,476 $ 648 $ 23,124 |
Acquisition-related Intangibl_2
Acquisition-related Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Indefinite-Lived Intangible Assets by Major Class | Acquisition-related intangible assets, net consisted of the following (in thousands): September 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 7,900 $ 1,641 $ 6,259 Customer relationships 1,000 1,000 — Total acquisition-related intangible assets $ 8,900 $ 2,641 $ 6,259 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 7,900 $ 456 $ 7,444 Customer relationships 1,000 145 855 Total acquisition-related intangible assets $ 8,900 $ 601 $ 8,299 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2023, estimated future amortization expense for acquisition-related intangible assets was as follows (in thousands): Remainder of 2023 $ 395 2024 1,580 2025 1,580 2026 1,580 2027 1,124 Total estimated future amortization expense for acquisition-related intangible assets $ 6,259 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock Option Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes stock option activity and related information under the Company’s equity incentive plans: Stock Options Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2022 6,476 $ 7.38 6.10 $ 55,516 Options granted 1,375 15.33 Options exercised (468) 2.59 Options canceled (166) 16.67 Options expired (16) 32.99 Outstanding as of September 30, 2023 7,201 $ 8.94 6.03 $ 46,903 Vested and exercisable as of September 30, 2023 5,453 $ 6.25 5.20 $ 44,813 The following table summarizes RSU activity and related information under the Company’s 2020 Plan: RSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested as of December 31, 2022 1,582 $ 26.49 Granted 2,357 $ 15.97 Vested (618) $ 22.67 Canceled or forfeited (313) $ 18.54 Unvested as of September 30, 2023 3,008 $ 19.86 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 387 $ 256 $ 1,089 $ 861 Technology and development 1,112 683 3,209 2,467 Sales and marketing 2,550 1,735 7,873 5,740 General and administrative 3,151 1,981 9,354 6,114 Total stock-based compensation expense 7,200 4,655 21,525 15,182 Tax benefit from stock-based compensation (1,397) (1,245) (4,105) (2,951) Total stock-based compensation expense, net of tax effect $ 5,803 $ 3,410 $ 17,420 $ 12,231 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 (loss) per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income (loss) attributable to common stockholders – basic $ 1,774 $ 3,326 $ (9,821) $ 15,924 Denominator: Weighted average shares outstanding – basic 51,638 52,436 52,132 52,169 Options to purchase common stock 4,000 4,489 — 4,701 Restricted stock 222 19 — 10 Employee stock purchase plan shares 119 — — 15 Weighted average shares outstanding – diluted 55,979 56,944 52,132 56,895 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.06 $ (0.19) $ 0.28 |
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 (loss) per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income (loss) attributable to common stockholders – basic $ 1,774 $ 3,326 $ (9,821) $ 15,924 Denominator: Weighted average shares outstanding – basic 51,638 52,436 52,132 52,169 Options to purchase common stock 4,000 4,489 — 4,701 Restricted stock 222 19 — 10 Employee stock purchase plan shares 119 — — 15 Weighted average shares outstanding – diluted 55,979 56,944 52,132 56,895 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.06 $ (0.19) $ 0.28 |
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 (loss) per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Options to purchase common stock 2,269 1,060 2,134 1,008 Unvested restricted stock units 669 1,284 1,337 1,096 ESPP — 134 50 66 Total common stock equivalents excluded from net income per share attributable to common stockholders – diluted 2,938 2,478 3,521 2,170 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table presents total revenue by geographic area based on the publisher’s billing address (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 38,077 $ 40,780 $ 108,608 $ 111,826 EMEA 19,686 16,525 57,345 48,210 APAC 4,655 6,456 13,117 19,352 Rest of the world 1,259 739 3,344 2,696 Total $ 63,677 $ 64,500 $ 182,414 $ 182,084 The following table presents long-lived assets, net, which consist primarily of property and equipment and operating lease right-of-use assets, by geographic area (in thousands): September 30, December 31, United States $ 69,240 $ 80,021 Rest of the world 14,443 17,341 Total $ 83,683 $ 97,362 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Impairment of Equity Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||
Equity securities without readily determinable fair value, downward price adjustment, annual amount | $ 6.4 | $ 6.4 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Concentration Risk Percentage (Details) - Customer Concentration Risk - Accounts Receivable | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
One Publisher | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 10% | 13% | 10% | 13% | |
Buyer One | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 32% | 33% | |||
Buyer Two | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 18% | 15% | |||
Buyer Three | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11% |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning balance | $ 14,845 | $ 1,765 | $ 1,765 | $ 1,765 |
Increase in provision for expected credit losses | 0 | 0 | 14,547 | 0 |
Write-offs | 0 | 0 | (1,467) | 0 |
Allowance for credit losses, ending balance | $ 14,845 | $ 1,765 | $ 14,845 | $ 1,765 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Increase in provision for expected credit losses | $ 0 | $ 0 | $ 14,547 | $ 0 |
Accounts receivable, chargeback to publishers | 8,800 | |||
Provision for doubtful accounts | $ 5,675 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | $ 73,623 | $ 82,013 |
Total financial assets | 152,927 | 135,066 |
Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 79,304 | 53,053 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 67,344 | 48,884 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 11,960 | 4,169 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 0 | 0 |
Total financial assets | 67,344 | 48,884 |
Level 1 | Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 67,344 | 48,884 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 67,344 | 48,884 |
Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 73,623 | 82,013 |
Total financial assets | 85,583 | 86,182 |
Level 2 | Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 11,960 | 4,169 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 11,960 | 4,169 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 0 | 0 |
Total financial assets | 0 | 0 |
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 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Level 3 | Certificates of deposit | ||
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] | ||
Marketable securities, fair value | 38,903 | 63,483 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 38,903 | 63,483 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 0 | 0 |
Agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 14,906 | 5,778 |
Agency debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 0 | 0 |
Agency debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 14,906 | 5,778 |
Agency debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 0 | 0 |
U.S. Treasury and government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 19,814 | 12,752 |
U.S. Treasury and government debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 0 | 0 |
U.S. Treasury and government debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | 19,814 | 12,752 |
U.S. Treasury and government debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, fair value | $ 0 | $ 0 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 73,635 | $ 82,022 |
Unrealized Gain | 2 | 19 |
Unrealized Loss | (14) | (28) |
Marketable securities | 73,623 | 82,013 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 38,903 | 63,483 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Marketable securities | 38,903 | 63,483 |
Agency debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,911 | 5,762 |
Unrealized Gain | 0 | 17 |
Unrealized Loss | (5) | 0 |
Marketable securities | 14,906 | 5,779 |
U.S. Treasury and government debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,821 | 12,777 |
Unrealized Gain | 2 | 2 |
Unrealized Loss | (9) | (28) |
Marketable securities | $ 19,814 | $ 12,751 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property, Equipment and Software, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 197,948 | $ 176,119 |
Less: accumulated depreciation and amortization | (136,033) | (104,963) |
Property, equipment and software, net | 61,915 | 71,156 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 56,859 | 40,794 |
Network hardware, computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 134,066 | 129,212 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 4,773 | 4,026 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 2,250 | $ 2,087 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation, depletion and amortization | $ 7,200,000 | $ 6,400,000 | $ 21,800,000 | $ 16,300,000 |
Capitalized computer software additions | 5,000,000 | 3,500,000 | 15,900,000 | 10,300,000 |
Capitalized Computer Software, Impairments | 0 | 0 | ||
Internal-use software | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization | $ 3,800,000 | $ 2,600,000 | $ 9,900,000 | $ 7,200,000 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accounts Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Payable to publishers | $ 249,221 | $ 266,506 |
Trade and other payables | 23,948 | 10,908 |
Total accounts payable | $ 273,169 | $ 277,414 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation | $ 15,282 | $ 14,587 |
Accrued and other current liabilities | 9,749 | 4,349 |
Accrued liabilities | $ 25,031 | $ 18,936 |
Senior Secured Credit Facilit_2
Senior Secured Credit Facilities Agreement (Details) - Revolving Credit Facility - Credit Agreement $ in Millions | Oct. 17, 2022 USD ($) |
Line of Credit | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 110 |
Line of credit facility, accordion feature, increase limit | $ 90 |
Line of Credit | Minimum | |
Line of Credit Facility [Line Items] | |
Line of credit facility, commitment fee percentage | 0.25% |
Line of Credit | Maximum | |
Line of Credit Facility [Line Items] | |
Line of credit facility, commitment fee percentage | 0.35% |
Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate | 0.50% |
Line of Credit | Secured Overnight Financing Rate (SOFR) | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate | 1% |
Line of Credit | Secured Overnight Financing Rate (SOFR) | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate | 2% |
Line of Credit | Secured Overnight Financing Rate (SOFR) | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate | 2.75% |
Line of Credit | Alternate Base Rate | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate | 1% |
Line of Credit | Alternate Base Rate | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate | 1.75% |
Line of Credit | Applicable Interest Rate | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate | 7.52% |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 25 |
Swingline Sub-Facility | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 25 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,882 | $ 1,759 | $ 5,550 | $ 5,059 |
Finance lease cost | 47 | 47 | 142 | 144 |
Total lease cost | $ 1,929 | $ 1,806 | $ 5,692 | $ 5,203 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2023 |
Leases [Abstract] | |
Operating leases | 3.26% |
Finance leases | 2.24% |
Operating lease term | 4 years |
Finance lease term | 4 years 6 months |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Operating Leases | |
Remainder of 2023 | $ 1,665 |
2024 | 6,565 |
2025 | 5,129 |
2026 | 5,339 |
2027 | 4,254 |
Thereafter | 993 |
Total minimum lease payments | 23,945 |
Less: imputed interest | (1,469) |
Total present value of lease liabilities | 22,476 |
Finance Leases | |
Remainder of 2023 | 35 |
2024 | 145 |
2025 | 149 |
2026 | 153 |
2027 | 158 |
Thereafter | 41 |
Total minimum lease payments | 681 |
Less: imputed interest | (33) |
Total present value of lease liabilities | 648 |
Total | |
Remainder of 2023 | 1,700 |
2024 | 6,710 |
2025 | 5,278 |
2026 | 5,492 |
2027 | 4,412 |
Thereafter | 1,034 |
Total minimum lease payments | 24,626 |
Less: imputed interest | (1,502) |
Total present value of lease liabilities | $ 23,124 |
Business Combination (Details)
Business Combination (Details) - Martin $ in Millions | Sep. 16, 2022 USD ($) |
Business Acquisition [Line Items] | |
Business combination, consideration transferred | $ 30.8 |
Business combination, separately recognized transactions, expenses and losses recognized | $ 14.2 |
Business combination, acquisition costs, payment term | 3 years |
Goodwill, acquired during period | $ 23.3 |
Business combination, recognized identifiable assets acquired and liabilities assumed, deferred tax liabilities | 1.1 |
Business combination, recognized identifiable assets acquired and liabilities assumed, liabilities | 0.3 |
Developed Technology Rights | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | 7.9 |
Customer Relationships | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 1 |
Acquisition-related Intangibl_3
Acquisition-related Intangible Assets, Net - Acquisition-Related Intangible Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,900 | $ 8,900 |
Accumulated Amortization | 2,641 | 601 |
Net Carrying Amount | 6,259 | 8,299 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,900 | 7,900 |
Accumulated Amortization | 1,641 | 456 |
Net Carrying Amount | 6,259 | 7,444 |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,000 | 1,000 |
Accumulated Amortization | 1,000 | 145 |
Net Carrying Amount | $ 0 | $ 855 |
Acquisition-related Intangibl_4
Acquisition-related Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 0.4 | $ 0.1 | $ 2 | $ 0.1 |
Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 4 years |
Acquisition-related Intangibl_5
Acquisition-related Intangible Assets, Net - Estimated Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 395 | |
2024 | 1,580 | |
2025 | 1,580 | |
2026 | 1,580 | |
2027 | 1,124 | |
Net Carrying Amount | $ 6,259 | $ 8,299 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) instrument | Dec. 31, 2022 USD ($) instrument |
Other Commitments [Line Items] | ||
Number of letters of credit | instrument | 2 | 2 |
Irrevocable Letters of Credit due July 2028 | ||
Other Commitments [Line Items] | ||
Letters of credit outstanding, amount | $ 3.5 | |
Irrevocable Letters of Credit due April 2025 | ||
Other Commitments [Line Items] | ||
Letters of credit outstanding, amount | $ 0.5 |
Stockholders_ Equity and Stoc_3
Stockholders’ Equity and Stock Option Plans - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
May 31, 2023 purchasePeriod | Jun. 01, 2022 purchasePeriod | Nov. 30, 2020 shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2023 USD ($) calendarYear shares | Feb. 28, 2023 USD ($) | |
Class of Stock [Line Items] | ||||||
Number of calendar years | calendarYear | 10 | |||||
Discount from market price, purchase date | 5% | |||||
Number of purchase periods | purchasePeriod | 2 | 1 | ||||
Amount withheld for employee stock purchase plan | $ 0.7 | $ 0.7 | ||||
Share-based Payment Arrangement, Option | ||||||
Class of Stock [Line Items] | ||||||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | 17.1 | $ 17.1 | ||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 2 years 5 months 1 day | |||||
Unvested restricted stock units | ||||||
Class of Stock [Line Items] | ||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 2 years 9 months 25 days | |||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 54.2 | $ 54.2 | ||||
ESPP | ||||||
Class of Stock [Line Items] | ||||||
Common stock reserved for issuance (in shares) | shares | 464,796 | 464,796 | ||||
Number of calendar years | calendarYear | 10 | |||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 8 months 1 day | |||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 0.7 | $ 0.7 | ||||
Percentage of outstanding stock maximum | 1% | |||||
Discount from market price, purchase date | 85% | |||||
Offering period | 27 months | |||||
Purchase period | 6 months | 6 months | ||||
Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Common stock reserved for issuance (in shares) | shares | 6,679,859 | 6,679,859 | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | shares | 65,092 | |||||
Common Class A | ESPP | ||||||
Class of Stock [Line Items] | ||||||
Common stock reserved for issuance (in shares) | shares | 500,000 | |||||
Number of shares authorized | shares | 7,500,000 | |||||
2023 Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 75 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 35.9 | $ 35.9 | ||||
Stock repurchased and retired during period (in shares) | shares | 1,061,762 | 2,647,958 | ||||
Stock repurchased and retired during period, value | $ 15.6 | $ 39.1 |
Stockholders_ Equity and Stoc_4
Stockholders’ Equity and Stock Option Plans - Summary of Stock Option Activity and Related Information (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Shares Underlying Outstanding Options (in thousands) | ||
Beginning balance (in shares) | shares | 6,476 | |
Options granted (in shares) | shares | 1,375 | |
Options exercised (in shares) | shares | (468) | |
Options canceled (in shares) | shares | (166) | |
Options expired (in shares) | shares | (16) | |
Ending balance (in shares) | shares | 7,201 | 6,476 |
Vested (in shares) | shares | 5,453 | |
Weighted-Average Exercise Price | ||
Beginning balance (in usd per share) | $ / shares | $ 7.38 | |
Options granted (in usd per share) | $ / shares | 15.33 | |
Options exercised (in usd per share) | $ / shares | 2.59 | |
Options canceled (in usd per share) | $ / shares | 16.67 | |
Options expired (in usd per share) | $ / shares | 32.99 | |
Ending balance (in usd per share) | $ / shares | 8.94 | $ 7.38 |
Vested (in usd per share) | $ / shares | $ 6.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years) | 6 years 10 days | 6 years 1 month 6 days |
Weighted average remaining contractual term vested (in years) | 5 years 2 months 12 days | |
Aggregate intrinsic value, awards outstanding | $ | $ 46,903 | $ 55,516 |
Aggregate intrinsic value, vested | $ | $ 44,813 |
Stockholders_ Equity and Stoc_5
Stockholders’ Equity and Stock Option Plans - Summary of Restricted Stock Units and Related Information (Details) - Unvested restricted stock units shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares Underlying Outstanding Options (in thousands) | |
Unvested beginning balance (in shares) | shares | 1,582 |
Granted (in shares) | shares | 2,357 |
Vested (in shares) | shares | (618) |
Canceled/Forfeited (in shares) | shares | (313) |
Unvested ending balance (in shares) | shares | 3,008 |
Weighted-Average Exercise Price | |
Unvested beginning balance (in usd per share) | $ / shares | $ 26.49 |
Granted (in usd per share) | $ / shares | 15.97 |
Vested (in usd per share) | $ / shares | 22.67 |
Canceled/Forfeited (in usd per share) | $ / shares | 18.54 |
Unvested ending balance (in usd per share) | $ / shares | $ 19.86 |
Stockholders_ Equity and Stoc_6
Stockholders’ Equity and Stock Option Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 7,200 | $ 4,655 | $ 21,525 | $ 15,182 |
Tax benefit from stock-based compensation | (1,397) | (1,245) | (4,105) | (2,951) |
Total stock-based compensation expense, net of tax effect | 5,803 | 3,410 | 17,420 | 12,231 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 387 | 256 | 1,089 | 861 |
Technology and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 1,112 | 683 | 3,209 | 2,467 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 2,550 | 1,735 | 7,873 | 5,740 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 3,151 | $ 1,981 | $ 9,354 | $ 6,114 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Common Stockholders - Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net income (loss) | $ 1,774 | $ (5,724) | $ (5,871) | $ 3,326 | $ 7,819 | $ 4,779 | $ (9,821) | $ 15,924 |
Denominator: | ||||||||
Weighted average common shares outstanding – basic | 51,638 | 52,436 | 52,132 | 52,169 | ||||
Denominator: | ||||||||
Weighted average common shares outstanding – basic | 51,638 | 52,436 | 52,132 | 52,169 | ||||
Options to purchase common stock (in shares) | 4,000 | 4,489 | 0 | 4,701 | ||||
Restricted stock (in shares) | 222 | 19 | 0 | 10 | ||||
Weighted average shares outstanding – diluted | 119 | 0 | 0 | 15 | ||||
Weighted average shares outstanding – diluted | 55,979 | 56,944 | 52,132 | 56,895 | ||||
Net income (loss) per share attributable to common stockholders – diluted (in usd per share) | $ 0.03 | $ 0.06 | $ (0.19) | $ 0.28 |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Total common stock equivalents excluded from net income per share attributable to common stockholders – diluted (in shares) | 2,938 | 2,478 | 3,521 | 2,170 |
Options to purchase common stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Total common stock equivalents excluded from net income per share attributable to common stockholders – diluted (in shares) | 2,269 | 1,060 | 2,134 | 1,008 |
Unvested restricted stock units | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Total common stock equivalents excluded from net income per share attributable to common stockholders – diluted (in shares) | 669 | 1,284 | 1,337 | 1,096 |
ESPP | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Total common stock equivalents excluded from net income per share attributable to common stockholders – diluted (in shares) | 0 | 134 | 50 | 66 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 111 | $ 1,398 | $ (2,719) | $ 4,728 |
Effective income tax rate reconciliation, percent | 6,000% | 30,000% | 22% | 23% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 63,677 | $ 64,500 | $ 182,414 | $ 182,084 | |
Total | 83,683 | 83,683 | $ 97,362 | ||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 38,077 | 40,780 | 108,608 | 111,826 | |
Total | 69,240 | 69,240 | 80,021 | ||
EMEA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 19,686 | 16,525 | 57,345 | 48,210 | |
APAC | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 4,655 | 6,456 | 13,117 | 19,352 | |
Rest of the world | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 1,259 | $ 739 | 3,344 | $ 2,696 | |
Total | $ 14,443 | $ 14,443 | $ 17,341 |
401(k) Plan - Narrative (Detail
401(k) Plan - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Retirement Benefits [Abstract] | ||
Defined contribution plan, maximum annual contributions per employee, percent | 100% | |
Defined contribution plan, employer discretionary contribution amount | $ 1 | $ 0.9 |