Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 14, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NVRO | ||
Entity Registrant Name | NEVRO CORP. | ||
Entity Central Index Key | 0001444380 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 36,397,882 | ||
Entity Public Float | $ 896 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-36715 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 56-2568057 | ||
Entity Address, Address Line One | 1800 Bridge Parkway | ||
Entity Address, City or Town | Redwood City | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94065 | ||
City Area Code | 650 | ||
Local Phone Number | 251-0005 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the registrant’s 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended December 31, 2023. | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | San Jose, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 104,217 | $ 120,373 |
Short-term investments | 218,506 | 254,012 |
Accounts receivable, net of allowance for doubtful accounts of $1,048 and $1,270 at December 31, 2023 and 2022, respectively | 79,377 | 78,930 |
Inventories | 118,676 | 99,638 |
Prepaid expenses and other current assets | 10,145 | 9,984 |
Total current assets | 530,921 | 562,937 |
Property and equipment, net | 24,568 | 22,271 |
Operating lease assets | 8,944 | 13,430 |
Goodwill | 38,164 | |
Intangible assets, net | 27,354 | |
Other assets | 5,156 | 3,164 |
Restricted cash | 606 | 606 |
Total assets | 635,713 | 602,408 |
Current liabilities | ||
Accounts payable | 22,520 | 26,849 |
Accrued liabilities | 45,297 | 47,168 |
Contingent liabilities, current portion | 9,836 | |
Other current liabilities | 5,722 | 5,195 |
Total current liabilities | 83,375 | 79,212 |
Long-term debt | 211,471 | 186,867 |
Long-term operating lease liabilities | 4,634 | 10,296 |
Contingent liabilities, non-current portion | 12,257 | |
Warrant liability | 28,739 | |
Other long-term liabilities | 2,092 | 2,157 |
Total liabilities | 342,568 | 278,532 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized at December 31, 2023 and 2022, respectively; zero shares issued and outstanding at December 31, 2023 and 2022, respectively | ||
Common stock, $0.001 par value, 290,000,000 shares authorized at December 31, 2023 and 2022, respectively; 37,044,390 and 36,203,423 shares issued at December 31, 2023 and 2022, respectively; 36,361,474 and 35,520,507 shares outstanding at December 31, 2023 and 2022, respectively | 36 | 35 |
Additional paid-in capital | 992,762 | 934,132 |
Accumulated other comprehensive income / (loss) | (243) | (3,094) |
Accumulated deficit | (699,410) | (607,197) |
Total stockholders’ equity | 293,145 | 323,876 |
Total liabilities and stockholders’ equity | $ 635,713 | $ 602,408 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,048 | $ 1,270 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 290,000,000 | 290,000,000 |
Common stock, shares issued | 37,044,390 | 36,203,423 |
Common stock, shares outstanding | 36,361,474 | 35,520,507 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 425,174 | $ 406,365 | $ 386,905 |
Cost of revenue | 135,114 | 129,998 | 120,863 |
Gross profit | 290,060 | 276,367 | 266,042 |
Operating expenses | |||
Research and development | 54,418 | 53,065 | 47,665 |
Sales, general and administrative | 334,704 | 322,138 | 309,311 |
Amortization of intangibles | 246 | ||
Certain litigation charges | (105,000) | 20,000 | |
Total operating expenses | 389,368 | 270,203 | 376,976 |
Income (loss) from operations | (99,308) | 6,164 | (110,934) |
Interest income | 14,166 | 4,021 | 671 |
Interest expense | (8,014) | (6,432) | (19,749) |
Change in fair market value of warrants | (8,051) | ||
Other income (expense), net | (586) | 511 | (814) |
Gain on extinguishment of debt | 3,934 | ||
Income (loss) before income taxes | (97,859) | 4,264 | (130,826) |
Provision for income taxes | (5,646) | 1,263 | 534 |
Net income (loss) | (92,213) | 3,001 | (131,360) |
Other comprehensive income (loss): | |||
Changes in foreign currency translation adjustment | 1,164 | (1,667) | (469) |
Changes in unrealized gains (losses) on short-term investments, net | 1,687 | (1,063) | (493) |
Net change in other comprehensive income (loss) | 2,851 | (2,730) | (962) |
Comprehensive income (loss) | $ (89,362) | $ 271 | $ (132,322) |
Net income (loss) per share | |||
Basic | $ (2.56) | $ 0.08 | $ (3.77) |
Diluted | $ (2.56) | $ 0.08 | $ (3.77) |
Weighted average number of common shares used to net income (loss) per share | |||
Basic | 35,981,431 | 35,317,644 | 34,823,258 |
Diluted | 35,981,431 | 35,525,255 | 34,823,258 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balances at Dec. 31, 2020 | $ 388,460 | $ 35 | $ 880,660 | $ (492,833) | $ 598 | |||
Beginning balances, shares at Dec. 31, 2020 | 34,583,064 | |||||||
Exercise of common stock options | $ 4,331 | 4,331 | ||||||
Exercise of common stock options, shares | 90,582 | 90,582 | ||||||
Issuance of common stock upon release of restricted stock units, shares | 346,602 | |||||||
Shares withheld for tax obligations | $ (8,062) | (8,062) | ||||||
Shares withheld for tax obligations, shares | (58,787) | |||||||
Issuance of common stock under employee stock purchase plan | 6,849 | 6,849 | ||||||
Issuance of common stock under employee stock purchase plan, shares | 65,197 | |||||||
Issuance of common stock from conversion of convertible senior notes due 2021 | $ 1 | (1) | ||||||
Issuance of common stock from conversion of convertible senior notes due 2021, shares | 682,912 | |||||||
Exercise of bond hedge for convertible senior notes due 2021 | $ (1) | 1 | ||||||
Exercise of bond hedge for convertible senior notes due 2021, shares | (682,916) | |||||||
Stock based compensation | 44,360 | 44,360 | ||||||
Net income (loss) | (131,360) | (131,360) | ||||||
Other comprehensive loss | (962) | (962) | ||||||
Ending balances at Dec. 31, 2021 | 303,616 | $ (34,345) | $ 35 | 928,138 | $ (48,340) | (624,193) | $ 13,995 | (364) |
Ending balances, shares at Dec. 31, 2021 | 35,026,654 | |||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | Accounting Standards Update 2020-06 [Member] | Accounting Standards Update 2020-06 [Member] | |||||
Exercise of common stock options | $ 1,203 | 1,203 | ||||||
Exercise of common stock options, shares | 26,091 | 26,091 | ||||||
Issuance of common stock upon release of restricted stock units, shares | 474,941 | |||||||
Shares withheld for tax obligations | $ (8,850) | (8,850) | ||||||
Shares withheld for tax obligations, shares | (137,638) | |||||||
Issuance of common stock under employee stock purchase plan | 5,190 | 5,190 | ||||||
Issuance of common stock under employee stock purchase plan, shares | 130,459 | |||||||
Stock based compensation | 56,791 | 56,791 | ||||||
Net income (loss) | 3,001 | 3,001 | ||||||
Other comprehensive loss | (2,730) | (2,730) | ||||||
Ending balances at Dec. 31, 2022 | 323,876 | $ 35 | 934,132 | (607,197) | (3,094) | |||
Ending balances, shares at Dec. 31, 2022 | 35,520,507 | |||||||
Exercise of common stock options | $ 1,455 | 1,455 | ||||||
Exercise of common stock options, shares | 83,058 | 83,058 | ||||||
Issuance of common stock upon release of restricted stock units | $ 1 | (1) | ||||||
Issuance of common stock upon release of restricted stock units, shares | 687,119 | |||||||
Shares withheld for tax obligations | $ (4,774) | (4,774) | ||||||
Shares withheld for tax obligations, shares | (177,036) | |||||||
Issuance of common stock under employee stock purchase plan | 5,085 | 5,085 | ||||||
Issuance of common stock under employee stock purchase plan, shares | 247,826 | |||||||
Stock based compensation | 56,865 | 56,865 | ||||||
Net income (loss) | (92,213) | (92,213) | ||||||
Other comprehensive loss | 2,851 | 2,851 | ||||||
Ending balances at Dec. 31, 2023 | $ 293,145 | $ 36 | $ 992,762 | $ (699,410) | $ (243) | |||
Ending balances, shares at Dec. 31, 2023 | 36,361,474 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income (loss) | $ (92,213) | $ 3,001 | $ (131,360) |
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||
Depreciation | 6,804 | 6,180 | 4,882 |
Amortization of operating lease assets | 4,485 | 4,147 | 3,796 |
Stock-based compensation expense | 56,866 | 56,798 | 44,367 |
Amortization of intangibles | 246 | ||
Amortization of premium (accretion of discount) on short-term investments | (4,118) | 408 | 1,510 |
Provision for (recovery of) doubtful accounts | 813 | 285 | (1,528) |
Write-down of inventory | 2,108 | 4,187 | 4,257 |
Amortization of debt discount and issuance costs | 1,389 | 1,213 | 13,263 |
Non-cash interest expense | 845 | ||
Change in fair market value of warrants | 8,051 | ||
Gain on extinguishment of debt | (3,934) | ||
Unrealized gains (losses) on foreign currency transactions | (509) | (2,654) | 3,083 |
Changes in operating assets and liabilities | |||
Accounts receivable | (211) | (9,611) | 8,205 |
Inventories | (19,235) | (7,828) | (17,225) |
Prepaid expenses and other current assets | 56 | (4,830) | (1,027) |
Other assets | (32) | 1,330 | (451) |
Accounts payable | (4,923) | (5,646) | 9,006 |
Accrued liabilities | (2,784) | 2,657 | 3,185 |
Other long-term liabilities | (12,533) | (24,962) | 14,156 |
Net cash provided by / (used in) operating activities | (58,829) | 24,675 | (41,881) |
Cash flows from investing activities | |||
Purchases of short-term investments | (189,243) | (268,218) | (446,916) |
Proceeds from maturity of short-term investments | 230,555 | 340,050 | 660,971 |
Investment in private company | (1,900) | ||
Payment for acquisition of business, net of cash acquired | (38,022) | ||
Purchases of property and equipment | (8,594) | (7,542) | (12,340) |
Net cash provided by / (used in) investing activities | (7,204) | 64,290 | 201,715 |
Cash flows from financing activities | |||
Proceeds from term debt and warrants | 200,000 | ||
Debt issuance costs | (5,830) | ||
Repayment of convertible notes | (146,402) | (172,500) | |
Minimum tax withholding paid on behalf of employees for net share settlement | (4,774) | (8,850) | (8,062) |
Proceeds from issuance of common stock to employees | 6,540 | 6,393 | 11,181 |
Net cash provided by / (used in) financing activities | 49,534 | (2,457) | (169,381) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 343 | (845) | (340) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (16,156) | 85,663 | (9,887) |
Cash, cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of year | 120,979 | 35,316 | 45,203 |
Cash, cash equivalents and restricted cash at end of year | 104,823 | 120,979 | 35,316 |
Supplemental disclosures of cash flow information | |||
Cash paid for income taxes | 1,515 | 527 | 1,283 |
Cash paid for interest | 5,960 | 5,218 | 6,728 |
Significant non-cash transactions | |||
Purchases of property and equipment in accounts payable | 854 | $ 766 | $ 526 |
Fair value of contingent consideration recorded in purchase accounting | $ 22,093 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (92,213) | $ 3,001 | $ (131,360) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Formation and Business of the C
Formation and Business of the Company | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company The Company was incorporated in Minnesota on March 10, 2006 to manufacture and market innovative active implantable medical devices for the treatment of neurological disorders initially focusing on the treatment of chronic pain. Subsequently, the Company was reincorporated in Delaware on October 4, 2006 and relocated to California. During the year ended December 31, 2023, the Company had net income of $ 92.2 million and had $ 58.8 million of cash provided by operations. At December 31, 2023, the Company had an accumulated deficit of $ 699.4 million. The Company has financed operations to date primarily through private placements of equity securities, borrowings under a debt agreement, the issuance of common stock public offerings and underwritten public offerings of convertible senior notes. The Company’s ability to continue to meet its obligations and to achieve its business objectives for the foreseeable future is dependent upon, amongst other things, generating sufficient revenues and its ability to continue to control expenses to meet its obligations as they become due. Failure to increase sales of its products, manage discretionary expenditures or raise additional financing, if required, may adversely impact the Company’s ability to achieve its intended business objectives. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). The consolidated financial statements include the Company’s accounts and those of its six operational wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Other Risks and Uncertainties The Company is also subject to risks common to medical device companies, including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, manufacturing quality and scaling, continued reimbursement from third-party payors, uncertainty of market acceptance of products and the need to obtain additional financing. The Company is currently dependent on third-party suppliers, which, in some cases, are sole- or single-source suppliers. Although the Company has developed internal manufacturing capabilities, it will remain dependent on third-party manufacturers and suppliers for individual components. There can be no assurance that the Company’s products or services will continue to be accepted in its existing marketplaces, nor can there be any assurance that any future products or services can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products or services will be successfully marketed, if at all. The Company may choose to raise additional funds to further enhance its research and development efforts, for product expansion opportunities or to acquire a new business or products that are complementary to its business. There can be no assurance that such financing will be available or will be at terms acceptable by the Company. Segments The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied only by information about revenue by geographic region, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level, other than revenue. Accordingly, the Company has determined that it has a single reportable and operating segment structure. The Company and its Chief Executive Officer evaluate performance based primarily on revenue in the geographic locations in which the Company operates. Long-lived assets and operating income outside the United States are not material; therefore, disclosures have been limited to revenue. Foreign Currency Translation The Company’s consolidated financial statements are prepared in U.S. dollars (USD). Its foreign subsidiaries in Europe and Australia use their local currency as their functional currency and maintain their records in the local currency. Accordingly, the assets and liabilities of these subsidiaries are translated into USD using the current exchange rates in effect at the balance sheet date and equity accounts are translated into USD using historical rates. Revenues and expenses are translated using the monthly average exchange rates during the period when the transaction occurs. The resulting foreign currency translation adjustments from this process are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. Unrealized foreign exchange gains and losses from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of the reporting entity are recorded in other income (expense), net. The Company recorded net unrealized foreign currency transaction gains of $ 0.4 million during the year ended December 31, 2023, gains of $ 3.1 million during the year ended December 31, 2022 and losses of $ 3.3 million during the year ended December 31, 2021. Additionally, realized gains and losses resulting from transactions denominated in currencies other than the local currency are recorded in other income (expense), net. The Company recorded realized foreign currency transaction losses of $ 0.8 million during the year ended December 31, 2023, losses of $ 2.4 million during the year ended December 31, 2022 and gains of $ 2.6 million during the year ended December 31, 2021. To the extent that the Company’s international operations grow, the effect of fluctuations in currency rates will become greater, and the Company will continue to reassess its approach to managing this risk. In addition, currency fluctuations or a weakening U.S. dollar can increase the costs of the Company’s international expansion. To date, the Company has not entered into any foreign currency hedging contracts. Based on its current international structure, the Company does not plan on engaging in hedging activities in the near future. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant accounting estimates and management judgments reflected in the consolidated financial statements include items such as allowances for doubtful accounts; warranty obligations; stock-based compensation; depreciation and amortization lives; inventory valuation; valuation of investments; loss contingencies; valuation of intangible assets and contingent consideration liability; goodwill valuation; and accounting for income taxes. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. Actual results may differ from those estimates under different assumptions or conditions. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and investments. The majority of the Company’s cash is held by one financial institution in the United States in excess of federally insured limits. The Company maintained investments in money market funds that were not federally insured during the years ended December 31, 2023 and 2022, and held cash in foreign banks of approximately $ 9.4 million and $ 18.6 million at December 31, 2023 and 2022, respectively, that was not federally insured. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company’s convertible note hedge transactions, entered into in connection with the 2025 Notes, subject the Company to credit risk such that the counterparties may be unable to fulfill the terms of the transactions. The associated risk is mitigated by limiting the counterparties to major financial institutions. In the international markets in which the Company participates, the Company uses both a direct sales force and distributors to sell its products, while in the United States the Company generally utilizes a direct sales force. The Company performs ongoing credit evaluations of some of its direct customers and distributors, does not require collateral, and maintains allowances for potential credit losses on customer accounts when deemed necessary. Credit Losses The Company makes estimates of the collectability of accounts receivable and provide an allowance for accounts receivable considered uncollectible based on current expected credit losses. In doing so, the Company analyzes historical bad debt trends, customer concentrations, customer credit worthiness, the age of the receivable, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for doubtful accounts. For the years ended December 31, 2023, 2022 and 2021, the Company recognized bad debt expenses of $ 0.8 million, $ 0.3 million and $ 0.1 million, respectively. Fair Value of Financial Instruments Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, short term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Investment Securities The Company classifies its investment securities as available-for-sale. The Company classifies these investment securities as short-term or long-term based on the nature of the investment, its maturity date and its availability for use in current operations. Those investments with original maturities greater than three months at the date of purchase and remaining maturities of less than 12 months are considered short-term investments. Those investments with remaining maturities greater than 12 months are also classified as short-term investments as management considers them to be available for current operations if needed. The Company’s investment securities are recorded at fair value based on the fair value hierarchy. Money market funds and treasury bonds are classified within Level 1 of the fair value hierarchy, and agency bonds, commercial paper and corporate notes are classified within Level 2 of the fair value hierarchy. Unrealized gains and losses, deemed temporary in nature, are reported as a separate component of accumulated other comprehensive income (loss). A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums (discounts) are amortized (accreted) over the life of the related security as an adjustment to yield using the straight-line interest method. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard cost method which approximates the first-in, first-out basis. Net realizable value is determined as the prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities compared to forecasted sales to record a provision for excess and obsolete inventory when appropriate. The Company estimates forecasted sales by considering product acceptance in the marketplace, customer demand, historical sales, product obsolescence and technological innovations. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected lower of cost or net realizable value, and inventory in excess of expected requirements. The estimate of excess quantities is judgmental and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on actual sales, the Company may increase the write-down for excess inventory for that component and record a charge to inventory impairment in the accompanying consolidated statements of operations and comprehensive loss. The Company’s estimation of the future demand for a particular component of the Company’s products may vary and may result in changes in estimates in any particular period. Shipping and Handling Costs Shipping and handling costs are expensed as incurred and are included in cost of revenue. Revenue Recognition The Company has revenue arrangements that generally consist of a single performance obligation, although, in some instances, revenue arrangements may consist of two performance obligations. The Company recognizes revenue at the point in time when it transfers control of promised goods to its customers. Revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods. Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of the Company’s goods to its customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods. For a majority of sales, where the Company’s sales representative delivers its product at the point of implantation at hospitals or medical facilities, the Company recognizes revenue upon completion of the procedure and authorization, which represents the point in time when control transfers to the customers. For the remaining sales, which are sent from the Company’s distribution centers directly to hospitals and medical facilities, as well as distributor sales, where product is ordered in advance of an implantation, the transfer of control occurs at the time of shipment of the product. These customers are obligated to pay within specified terms regardless of when or if they ever sell or use the products. The Company does not offer rights of return or price protection. To the extent the Company has a post-delivery obligation, such as programming devices that have been delivered as part of a direct-ship order, the Company defers revenue and the associated cost of goods sold associated with the post-delivery obligation only if the amounts are deemed material. For the periods presented, the amounts have not been material. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The expected costs associated with warranty obligations continue to be recognized as expense when the products are sold (see Note 7). The Company periodically provides incentive offers, in the form of rebates, to customers based on their aggregate levels of purchases. Product revenue is recorded net of such incentive offers. Practical Expedients and Exemptions - The Company recognizes revenue upon the transfer of control of the product and there are no material future performance obligations beyond such transfer. As a result, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not capitalize incremental costs when the amortization period of the asset is less than a year. Valuation of Business Acquisition The Company allocates the amounts paid for acquisition to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets, which either arise from a contractual or legal right or are separable from goodwill. The Company bases the fair value of identifiable intangible assets acquired in a business combination on detailed valuations that use information and assumptions provided by management, which consider management’s best estimates of inputs and assumptions that a market participant would use. The Company allocates to goodwill any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired. Transaction costs associated with acquisitions are expensed as incurred through Selling, general and administrative expenses. Where an acquisition involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the contingent payments it expects to make as of the acquisition date. The Company re-measures this liability each reporting period and record changes in the fair value through Contingent consideration net expense (benefit) on our consolidated statements of operations. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount rates, periods, timing and amount of projected revenue or timing or likelihood of achieving regulatory, revenue or commercialization-based milestones. Payment of additional consideration is generally contingent on the acquired company reaching certain performance milestones after the acquisition date, including attaining specified revenue levels, achieving product development targets and/or obtaining regulatory approvals for products at the date of the acquisition. Amortization of Intangible Assets The Company records definite-lived intangible assets at historical cost and amortize them over their estimated useful lives, using a straight-line method of amortization. The approximate useful lives for amortization of our intangible assets are as follows: developed technology, ten years; customer relationships, three years. The amortization of these intangible assets, which were acquired in a business acquisition, is include in the consolidated statements of operations as Amortization of intangibles. The Company reviews intangible assets subject to amortization quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset or an adverse action or assessment by a regulator. If we determine that the asset is impaired based on qualitative assessments of impairment indicators, the intangible asset is tested for recoverability. For purposes of the recoverability test, the Company groups amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset or asset group exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset or asset group, the Company will write down the carrying value to fair value in the period impairment is identified. Goodwill Valuation The Company allocates any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination to goodwill. The Company tests goodwill balances in the fourth quarter of each year, or more frequently if impairment indicators are present or changes in circumstances suggest an impairment may exist. Goodwill is assessed for impairment at the reporting unit level. Warrant Liability The Company accounts for its warrants as liabilities in accordance with ASC 815-40, Derivatives and Hedging . The warrants are presented as a Warrant liability in the consolidated balance sheet and are measured at fair value, with gains or losses recognized in the consolidated statement of operations. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment, other than leasehold improvements, is computed using the straight-line method over the assets’ estimated useful lives of three to five years . Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the life of the lease. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. There were no impairment charges, or changes in estimated useful lives, recorded through December 31, 2023 . Lease Accounting The Company has operating leases for office space, warehouse, research and development facilities, manufacturing facilities and equipment. Leases with terms of 12 months or less are not recorded on the balance sheet, as the related lease expenses are recognized on a straight-line basis over the lease term. The Company accounts for lease components (such as fixed payments) separately from non-lease components (such as common area expenses). Operating lease assets and operating lease liabilities are recognized based on the present value of minimum lease payments over the remaining lease term. The Company uses its incremental borrowing rate based on information available when determining the lease liabilities. Lease cost is recognized on a straight-line basis over the expected lease term. Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. In estimating future tax consequences, expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. To date, taxes paid have been predominantly due to income taxes in foreign and state jurisdictions in which we conduct business. The Company provides for tax contingencies whenever it is deemed probable that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relative tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest and penalties related to income taxes as a component of income tax expense. Other Comprehensive Income (Loss) Other comprehensive income (loss) represents all changes in stockholders’ equity except those resulting from distributions to stockholders. The Company’s unrealized gains (losses) on short-term available-for-sale investment securities and foreign currency translation adjustments represent the components of other comprehensive income (loss) that are excluded from the reported net loss and are presented in the consolidated statements of operations and comprehensive loss. Research and Development Research and development expenses, including new product development, regulatory compliance, and clinical research, are charged to operations as incurred in the consolidated statements of operations and comprehensive loss. Such costs include personnel-related costs, including stock-based compensation, supplies, services, depreciation, allocated facilities and information services, clinical trial and related clinical manufacturing expenses, fees paid to investigative sites, and other indirect costs. Stock-Based Compensation The Company accounts for stock-based compensation arrangements with employees in accordance with Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation. ASC 718 requires the recognition of compensation expense, using a fair value-based method, for costs related to all share-based payments including stock options. The Company estimates forfeitures expected to occur to determine the amount of compensation cost recognized in each period. The Company’s determination of the fair value of stock options, other than performance-based awards, on the date of grant utilizes the Black-Scholes option-pricing model, and is impacted by its common stock price as well as changes in assumptions regarding a number of subjective variables. The expected term that the award will remain outstanding is based on the Company’s own historical data. The expected volatility over the term of the awards is based on the Company’s own common stock volatility and those of its peer group. The risk-free interest rate is based on the U.S. Treasury yield for zero-coupon U.S. Treasury notes with maturities. The expected dividend is zero, as the Company has never paid dividends and has no current plans to do so. The fair value of stock options is recognized over the period during which an optionee is required to provide services in exchange for the option award, known as the requisite service period (usually the vesting period), on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of the rights to purchase shares by employees under the Employee Stock Purchase Plan using the Black-Scholes option pricing formula. The Employee Stock Purchase Plan provides for consecutive six-month offering periods and the Company uses its own historical volatility data in the valuation. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustments as the underlying equity instruments vest. The fair value of options granted to consultants is expensed when vested. The non-employee stock-based compensation expense was not material for all periods presented. The Company accounts for stock-based compensation for the restricted stock units at their fair value, based on the closing market price of the Company’s common stock on the grant date. These costs are recognized on a straight-line basis over the requisite service period, which is generally the vesting term of three to four years . The Company grants performance stock units with vesting based on its stock price performance compared to a specified target composite index over a certain period, as well as performance stock units with vesting based on absolute stock price. The fair value of these grants is determined by using the Monte Carlo simulation model, which is based on a discounted cash flow approach, and requires inputs such as expected volatility of our stock price, expected volatility of the targeted composite index, correlation between the changes in our stock price and the target composite index, risk-free interest rate and expected dividends. The expected volatility of our stock and the target composite index is based on the historical data. Correlation is based on the historical relationship between our stock price and the target composite index. The risk-free interest rate is based upon the treasury yield consistent with the vesting term of the grant. The expected dividend yield is zero . Stock-based compensation for these performance stock units is recognized over the specified vesting period. The Company additionally issues performance stock units with vesting based upon the achievement of a specific financial target. The fair value for these performance-based awards is recognized over the period during which the goals are to be vested. Stock-based compensation expense recognized at fair value includes the impact of estimated probability that the goals would be achieved, which is assessed prior to the requisite service period for the specific goals, and is reassessed quarterly. Excess tax benefits or shortfalls from share-based award activity are reflected in the consolidated statements of operations as a component of the provision for income taxes. Net Income (Loss) per Share of Common Stock Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares and potentially dilutive common stock equivalents outstanding for the period, if inclusion of these is dilutive. Potentially dilutive common stock equivalents include the common stock options, restricted stock units and performance stock units. Additionally, upon adoption of ASU 2020-06 on January 1, 2022, the Company uses the if-converted method and presumes share settlement for its 2025 Notes when calculating the dilutive effect of these notes. Prior to the adoption, the Company applied the treasury stock method when calculating the potential dilutive effect, if any, of the convertible senior notes which were intended to settle or have settled in cash the principal outstanding. Furthermore, in connection with the offerings of the convertible senior notes, the Company entered into convertible note hedges and warrants. However, the convertible note hedges are not included when calculating potentially dilutive shares since their effect is always anti-dilutive. Warrants were considered anti-dilutive to the extent that their strike price were above the Company's average share price during the period. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). The ASU simplifies the accounting for convertible instruments by eliminating the cash conversion and beneficial conversion feature models used to separately account for embedded conversion features as a component of equity. Instead, entities will account for the convertible debt as a single unit of account, unless the conversion feature requires bifurcation and recognition as derivatives. Additionally, the guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement for instruments that may be settled in cash or shares. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method as of January 1, 2022. The adoption of ASU 2020-06 resulted in an increase of $ 34.3 million to long term debt to reflect the full principal amount of the convertible senior notes due 2025 issued in April 2020 (2025 Notes), net of debt issuance costs, a reduction of $ 48.3 million to additional paid-in capital to remove the equity component separately recorded for the conversion features and the debt issuance costs allocated to the conversion feature and a cumulative-effect adjustment of $ 14.0 million reducing the beginning balance of accumulated deficit as of January 1, 2022. Upon the adoption of ASU 2020-06, interest expense is reduced as the Company no longer recognizes any amortization of debt discounts as interest expense due to the removal of the unamortized debt discounts. The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2022 for the adoption of ASU 2020-06 were as follows (in thousands): Balance at Adjustments Due Balance at December 31, 2021 to ASU 2020-06 January 1, 2022 Long term debt $ 151,310 $ 34,345 $ 185,655 Additional paid-in capital $ 928,138 $ ( 48,340 ) $ 879,798 Accumulated deficit $ ( 624,193 ) $ 13,995 $ ( 610,198 ) |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. Revenue The following table presents revenue by geography, based on the billing address of the customer (in thousands): Years Ended December 31, 2023 2022 2021 United States $ 366,558 $ 348,166 $ 326,216 International 58,616 58,199 60,689 Total revenue $ 425,174 $ 406,365 $ 386,905 The United States is the only country that accounts for 10% or more of the revenue during the periods presented: Years Ended December 31, 2023 2022 2021 United States 86 % 86 % 84 % There were no customers that accounted for 10 % or more of the Company’s revenue for each of the years ended December 31, 2023, 2022 and 2021 . Additionally, there were no customers that accounted for 10 % or more of the Company’s accounts receivable balance as of December 31, 2023 and 2022. In July 2021, the Company received FDA approval of its proprietary 10 kHz Therapy for the management of chronic intractable pain of the lower limbs, including unilateral or bilateral pain, associated with painful diabetic neuropathy (PDN). For the year ended December 31, 2023, PDN represented approximately 20 % of worldwide permanent implant procedures, which resulted in approximately $ 77.9 million in revenue. For the year ended December 31, 2022, PDN represented approximately 12 % of worldwide permanent implant procedures, which resulted in approximately $ 48.0 million in revenue. For the year ended December 31, 2021, worldwide revenue includes approximately $ 5.7 million of revenue for PDN indication since the July 2021 FDA approval. The Company classifies PDN revenue by using estimates and assumptions based on historical experiences and knowledge of current conditions, given available information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 4. Leases As of December 31, 2023 , the Company has leases with remaining terms of 1 year to 7 years , some of which may include options to extend the lease term for up to 5 years. The weighted average lease terms and discounts rates are as follows: December 31, 2023 2022 Operating Lease Term and Discount Rate Weighted-average remaining lease term 2.86 years 3.38 years Weighted-average discount rate 7.0 % 7.0 % As of December 31, 2023, the maturity of lease liabilities are as follows (in thousands): Operating Leases 2024 $ 6,201 2025 2,849 2026 405 2027 417 2028 430 Thereafter 1,131 Total lease payments 11,433 Less: Interest ( 1,077 ) Present value of lease liabilities $ 10,356 Supplemental lease cost information are as follows (in thousands): Years Ended December 31, 2023 2022 Operating lease cost $ 5,370 $ 5,370 Supplemental balance sheet information are as follows (in thousands): December 31, 2023 2022 Operating Leases: Operating lease assets $ 8,944 $ 13,430 Other current liabilities $ 5,722 $ 5,195 Long term operating lease liabilities 4,634 10,296 Total operating lease liabilities $ 10,356 $ 15,491 Supplemental cash flow information are as follows (in thousands): Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 6,019 $ 5,720 See Note 7 for further details of the Company’s lease commitments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: • Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash Equivalents and Short Term Investments The Company’s cash equivalents include investments in money market funds which are unrestricted as to withdrawal or use and are classified as Level 1 of the fair value hierarchy. To value its money market funds, the Company values the funds at $ 1 stable net asset value, which is the quoted price in active markets for identical assets that the Company has the ability to access. At December 31, 2023 and 2022 , the Company’s cash equivalents were held in institutions in the United States. The Company’s cash equivalents and short-term investments also includes agency bonds, commercial paper, corporate notes and treasury bonds, which have been classified within Level 1 or Level 2 of the fair value hierarchy because of the sufficient observable inputs for revaluation. The Company’s Level 2 investments are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of any broker/dealer quotes on the same or similar investments, issuer credit spreads, benchmark investments, prepayment/default projections based on historical data and other observable inputs. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): Balance as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 82,886 $ — $ — $ 82,886 Agency bonds (ii) — 99,054 — 99,054 Commercial paper (ii) — 22,374 — 22,374 Corporate notes (ii) — 3,490 — 3,490 Treasury bonds (ii) 93,588 — — 93,588 Total assets $ 176,474 $ 124,918 $ — $ 301,392 Balance as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 92,318 $ — $ — $ 92,318 Agency bonds (ii) — 183,678 — 183,678 Commercial paper (ii) — 24,742 — 24,742 Treasury bonds (ii) 45,592 — — 45,592 Total assets $ 137,910 $ 208,420 $ — $ 346,330 (i) Included in cash and cash equivalents on the consolidated balance sheets. (ii) Included in short-term investments on the consolidated balance sheets. Convertible Senior Notes On June 1, 2021, the Company settled the 2021 Notes at maturity, and as of December 31, 2021, the 2021 Notes were no longer outstanding. The fair value of the 2.75 % convertible senior notes due 2025 was $ 35.6 million for $ 38.0 million principal outstanding as of December 31, 2023 and $ 174.2 million for $ 189.8 million principal outstanding as of December 31, 2022, respectively. The fair value was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. Warrant Liability The Braidwell Warrants were valued using the Black Scholes valuation model. As of December 31, 2023, the fair value of the Braidwell Warrants was $ 28.7 million and is considered Level 3 in the fair value hierarchy. Assumptions for the warrant liability are as follows: December 31, November 30, 2023 2023 Expected term (in years) 6 6 Expected volatility 53 % 55 % Risk-free interest rate 3.50 % 3.89 % Dividend Yield 0 % 0 % Contingent Consideration In connection with Vyrsa Acquisition, the Company is subject to certain contingent consideration. The regulatory approval milestone and product development milestone consideration are valued using the probability-weighted average discount cash flow model, and the revenue milestone consideration is valued using the Monte Carlo simulation model. As of December 31, 2023, the fair value of the contingent consideration related to the regulatory approval, product development and revenue milestones were $ 5.0 million, $ 1.7 million and $ 15.5 million, respectively. The contingent consideration is considered Level 3 in the fair value hierarchy. Significant unobservable inputs for the contingent consideration are as follows: Contingent Liability Fair Value at December 31, 2023 Valuation Technique Unobservable Input Range Regulatory Approval $ 4,964 Probability-Weighted Probability of Payment 80 % Milestone Average Discount Risk-Free Rate 5.2 % — 5.3 % Cash Flow Credit Spread 4.3 % Projected Year of Payment 2024 Product Development $ 1,677 Probability-Weighted Probability of Payment 50 % Milestone Average Discount Risk-Free Rate 4.9 % — 5.1 % Cash Flow Credit Spread 4.3 % Projected Year of Payment 2024 — 2025 Revenue Milestone $ 15,452 Monte Carlo Simulation Discount Rate 8.7 % — 9.3 % Revenue Volatility 17.0 % Projected Year of Payment 2025 — 2027 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | 6. Balance Sheet Components Investments The fair value of the Company’s cash equivalents and short-term investments approximates their respective carrying amounts due to their short-term maturity. The following is a summary of the gross unrealized gains and unrealized losses on the Company’s investment securities (in thousands): December 31, 2023 Amortized Gross Gross Aggregate Investment Securities Agency bonds $ 99,076 $ 68 $ ( 90 ) $ 99,054 Commercial paper 22,369 5 — 22,374 Corporate notes 3,491 — ( 1 ) 3,490 Treasury bonds 93,312 317 ( 41 ) 93,588 Total securities $ 218,248 $ 390 $ ( 132 ) $ 218,506 December 31, 2022 Amortized Gross Gross Aggregate Investment Securities Agency bonds $ 184,666 $ 2 $ ( 990 ) $ 183,678 Commercial paper 24,767 5 ( 30 ) 24,742 Treasury bonds 46,008 — ( 416 ) 45,592 Total securities $ 255,441 $ 7 $ ( 1,436 ) $ 254,012 Realized gains or losses from the sale of investments and other-than-temporary impairments, if any, on available-for-sale securities are reported in other income (expense), net as incurred. The cost of securities sold was determined based on the specific identification method. The amount of realized gains and realized losses on investments for the periods presented have not been material. The amortized costs and estimated fair values of the Company’s available-for-sale securities by contractual maturities as of December 31, 2023 were as follows (in thousands): Amortized Cost Fair Value Amounts maturing within one year $ 182,476 $ 182,492 Amounts after one year through five years 35,772 36,014 Total investment securities $ 218,248 $ 218,506 Inventories (in thousands) December 31, 2023 2022 Raw materials $ 64,974 $ 53,384 Work in process 2,149 1,195 Finished goods 51,553 45,059 Total inventories $ 118,676 $ 99,638 The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand using the same lower of cost or net realizable value approach as that has been used to value the inventory. The Company also periodically evaluates inventory quantities in consideration of actual loss experience. As a result of these evaluations, for the year ended December 31, 2023, the Company recognized total write-downs of $ 2.1 million for its inventories. For the years ended December 31, 2022 and 2021, the Company recognized total write-downs of $ 4.2 million and $ 4.3 million, respectively, for its inventories. Property and Equipment, Net (in thousands) December 31, 2023 2022 Laboratory equipment $ 15,414 $ 11,482 Computer equipment and software 15,451 13,990 Internally developed software 8,831 4,636 Furniture and fixtures 4,745 4,421 Leasehold improvements 10,924 10,589 Construction in process 4,865 5,984 Total 60,230 51,102 Less: Accumulated depreciation and amortization ( 35,662 ) ( 28,831 ) Property and equipment, net $ 24,568 $ 22,271 Depreciation and amortization expense for the years ended December 31, 2023, 2022 and 2021 was $ 6.8 million, $ 6.2 million and $ 4.9 million, respectively. Restricted Cash Restricted cash as of December 31, 2023 and 2022 includes certificates of deposit of $ 0.6 million representing collateral for the Company’s Redwood City, CA building lease pursuant to an agreement dated March 5, 2015. Accrued Liabilities (in thousands) December 31, 2023 2022 Accrued payroll and related expenses $ 31,715 $ 35,341 Accrued professional fees 2,909 1,425 Accrued taxes 1,482 1,910 Accrued clinical and research expenses 752 282 Accrued interest 1,123 1,305 Accrued warranty 1,531 866 Accrued other 5,785 6,039 Total accrued liabilities $ 45,297 $ 47,168 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Leases In March 2015 , the Company entered into a lease agreement for approximately 50,740 square feet of office space located in Redwood City, California for a period beginning in June 2015 through May 2022 with initial annual payments of approximately $ 2.0 million, increasing to $ 2.4 million annually during the final year of the lease term. In December 2016, the Company entered into an amendment for an additional approximately 49,980 square feet of office space adjacent to the premises under the original lease (the Expansion Premises), with initial annual payments of $ 1.2 million, increasing to $ 2.9 million in the final year of the amended lease term. The lease for the Expansion Premises commenced on June 1, 2018 . The amendment also extends the lease term for the original premises to terminate on the same date as the amended lease, which is May 31, 2025 . In February 2017, the Company entered into a separate non-cancellable facility lease for warehouse space beginning March 1, 2017 through February 28, 2022 , under which the Company is obligated to pay approximately $ 0.4 million in lease payments over the term of the lease. In October 2021, the Company entered into an amendment to extend the lease term to May 31, 2025 . In August 2020 , the Company entered into a lease for approximately 35,411 square feet of space for a manufacturing facility in Costa Rica for a period of April 2021 through June 2031 , under which it is obligated to pay approximately $ 3.9 million in lease payments over the term of the lease. See Note 4 for further discussion on Leases. Warranty Obligations The Company warrants that its products will operate substantially in conformity with product specifications and provides a limited one- to five-year warranty . Activities related to warranty obligations were as follows (in thousands): December 31, 2023 2022 Beginning Balance $ 866 $ 664 Provision for warranty 5,355 3,239 Utilization ( 4,690 ) ( 3,037 ) Ending Balance $ 1,531 $ 866 Supply Agreements The Company has entered into supply agreements with certain of the Company’s suppliers that required certain minimum annual purchase agreements. As of December 31, 2023, the Company had minimum annual purchase commitments of $ 19.8 million due in each of 2024, 2025 and 2026. As of December 31, 2022, the Company had minimum annual purchase commitments of $ 19.9 million due in 2023 and $ 20.1 million due in each of 2024 and 2025. The Company also entered into a service agreement in January 2020 for which it is committed to pay $ 2.9 million annually in 2024. License Agreements In March 2006, the Company entered into an amended and restated license agreement with the Mayo Foundation for Medical Education and Research (Mayo) and Venturi Group LLC (VGL), which provides the Company access to the certain know how and licensed patents owned by Mayo and VGL for treatment of central, autonomic and peripheral nervous system disorders, including pain, using devices to modulate nerve signaling. The licenses granted are exclusive and the Company has the right to sub-license. The agreement will terminate upon the last to expire patent application, unless terminated earlier. The agreement can be terminated any time after three years from March 2006 by Mayo or VGL. Per terms of the license, the Company is required to pay royalties based on the greater of earned royalty or minimum royalty. The earned royalty will be based on a percentage of net sales of licensed products either by the Company or the sub-licensee. The minimum royalty payment will be based on royalty periods as defined in the agreement. In March 2011, the Company entered into a Phase II License Agreement with Mayo which provides the Company access to the certain know how and licensed patents owned by Mayo. The licenses granted are exclusive and the Company has the right to sub-license. The agreement will terminate upon the last to expire patent application, unless terminated earlier. Per terms of the license, the Company is required to: • Pay a retainer fee of $ 40,000 per annum starting March 2011 and ending February 2013; • Pay royalties based on the greater of earned royalty or minimum royalty. The earned royalty is based on a percentage of net sales of licensed products either by the Company or the sub-licensee. The minimum annual royalty payment is $ 200,000 . The Mayo License terminates upon the expiration of (1) the last to expire of the licensed patents or (2) our obligation to pay royalties, whichever is later. Such obligations may be subject to change if: (1) additional relevant patents issue that are subject to the Mayo License; or (2) we launch an SCS product, which is subject to the Mayo License, in another country. In late 2022, the Company began sales in a new country. Therefore, for the year ended December 31, 2022, royalty expenses were less than $ 10,000 . There were no royalties expenses for each of the years ended December 31, 2023 and 2021. Investment in Privately-Held Company In July 2023, the Company entered into an agreement with a privately-held company to, among other things, provide financing to the privately-held company. Through September 30, 2023, the Company has provided financing totaling $ 1.9 million in the form of two convertible notes. The Company has the obligation to provide additional funding of up to $ 1.0 million in the form of an additional convertible note if the privately-held company achieves certain agreed upon development milestones. Additionally, the Company may purchase shares of the most senior security in the privately-held company in two separate tranches totaling a fair value of $ 2.0 million, each tranche upon the achievement of certain development targets. As of December 31, 2023, the value of the secured convertible notes is $ 1.9 million and is reported in Other assets on the condensed consolidated balance sheet. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. There have been no contingent liabilities requiring accrual at December 31, 2023 and 2022. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, including, among other circumstances, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has director and officer insurance coverage that reduces the Company’s exposure and enables the Company to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. Legal Matters Boston Scientific Litigations California Litigation Related to High Frequency On November 28, 2016, the Company filed a lawsuit for patent infringement against Boston Scientific Corporation and Boston Scientific Neuromodulation Corporation (collectively, Boston Scientific). The lawsuit, filed in the U.S. District Court for the Northern District of California (the California Court), asserted that Boston Scientific was infringing, or would soon begin infringing, seven of the Company’s patents covering inventions relating to the Senza system and 10 kHz Therapy. Shortly after the Company filed this lawsuit in 2016, Boston Scientific cancelled its original launch plan and modified its SCS system to avoid infringing the asserted patents. On July 24, 2018, the California Court issued an order on claim construction and summary judgment. In the order, the California Court ruled that the Company’s asserted method claims were patent eligible and not invalid as indefinite. Collectively, the asserted method claims cover methods for delivering SCS therapy at frequencies between 1.5 kHz and 100 kHz. The California Court, however, found that Boston Scientific was not currently infringing the six upheld method claims because Boston Scientific cancelled its original launch plans and ultimately never practiced the asserted method claims in the United States. Specifically, the California Court found that Boston Scientific's sale of the Spectra WaveWriter systems for commercial use in the United States did not infringe the upheld method claims because Boston Scientific modified the Spectra WaveWriter systems to prevent them from being programmed to generate signals above 1.2 kHz. The California Court also found that the Company’s asserted system claims were invalid as indefinite. As discussed below, the California Court’s finding of invalidity was overturned by the U.S. Court of Appeals for the Federal Circuit (the Federal Circuit). On July 31, 2018, the parties entered into an agreement to dismiss the Company’s declaratory judgment claims, without prejudice, so that the Company and Boston Scientific could each appeal portions of the California Court’s July 24th ruling to the Federal Circuit. On April 9, 2020, the Federal Circuit returned its ruling, which vacated and remanded the California Court’s judgment of invalidity. As a result of the Federal Circuit’s ruling, the system claims invalidated by the California Court were reinstated, and thus all of the Company’s asserted claims remain valid and enforceable. On December 14, 2020, the parties agreed to the final dismissal of all remaining claims before the California Court based on Boston Scientific’s assertion to the court that it did not have any current plans to commercially launch a high frequency SCS system in the United States. The California Court entered the agreed upon dismissal on December 16, 2020. Delaware Litigations Unrelated to High Frequency On December 9, 2016, Boston Scientific filed a patent infringement lawsuit alleging the Company’s manufacture, use and sale of the Senza system infringes ten of Boston Scientific’s patents covering spinal cord stimulation technology related to stimulation leads, rechargeable batteries and telemetry (the Delaware I litigation). On April 27, 2018, Boston Scientific filed a second lawsuit alleging patent infringement of nine patents, trade secret misappropriation and tortious interference with contract (the Delaware II litigation). Both lawsuits were filed in the U.S. District Court for the District of Delaware. In relation to the Delaware I litigation, the Company filed petitions for inter partes review at the U.S. Patent and Trademark Office (USPTO), which resulted in the invalidation of all of the asserted claims of Boston Scientific’s U.S. Patent Nos. 7,587,241 and 6,895,280, in February 2019. The invalidity rulings by the Patent Trial and Appeal Board (PTAB) at the USPTO were later affirmed by the Federal Circuit on May 18, 2020 and May 29, 2020, respectively. In relation to the Delaware II litigation, the Company filed seven petitions for inter partes review at the PTAB against seven of the nine patents asserted by Boston Scientific. As a result of those petitions, in January 2021, the PTAB invalidated all but two of the challenged Boston Scientific claims across the seven inter partes reviews. The invalidity rulings by the PTAB were later affirmed by the Federal Circuit on March 10, 2022, and March 18, 2022, respectively. Through various orders from the court, portions of Boston Scientific’s Delaware I case were dismissed, and portions of Boston Scientific’s Delaware II case were stayed for future litigation. The stay of the Delaware II litigation was lifted in April 2022, and the case was expected to proceed to a trial in 2023. In relation to the Delaware I case, of the ten patents originally asserted on December 9, 2016, Boston Scientific proceeded to trial with four patents directed to SCS leads and lead manufacturing techniques. On November 1, 2021, a Delaware jury found that the Company infringed Boston Scientific’s patents U.S. 7,891,085 (the ‘085 patent) and U.S. 8,019,439, and that the Company did not infringe Boston Scientific’s patents U.S. 8,646,172 and U.S. 8,650,747. With regard to the ‘085 patent, the jury found that the infringement was willful, though the infringement of the ‘085 patent was only directed to a limited number of SCS leads that the Company sold internationally between 2012 and 2014. Boston Scientific does not assert that the Company continues to infringe the ‘085 patent. The Delaware jury awarded Boston Scientific $ 20.0 million. The Company disagreed with this decision and intended to appeal. In relation to the Delaware II litigation, the Company also filed counterclaims against Boston Scientific, alleging patent infringement of five Nevro patents. In March 2021, on the basis of Boston Scientific’s petition, the PTAB initiated inter partes reviews of two of Nevro’s five counterclaim patents. The two instituted inter partes reviews were directed to Nevro’s U.S. Patent Nos. 10,076,665 and 9,002,460. On March 14, 2022, the PTAB upheld claim 8 of Nevro’s U.S. Patent No. 10,076,665, but invalidated the rest of the challenged claims, and the PTAB invalidated all of the challenged claims of Nevro’s U.S. Patent No. 9,002,460. The Company expected litigation to proceed for the remaining three counterclaim patents, and for a trial to be held for the three counterclaim patents in 2023. On February 23, 2021, the Company filed a patent infringement lawsuit against Boston Scientific alleging that its January 2021 launch of the WaveWriter Alpha SCS System infringes five of the Company’s patents covering spinal cord stimulation technology related to delivering paresthesia-free therapy at frequencies below 1,200 Hz. The lawsuit, filed in the U.S. District Court for the District of Delaware (the Delaware III litigation), sought unspecified damages and attorney’s fees, as well as preliminary and/or permanent injunctive relief against further infringement. The Company expected a trial for the Delaware III litigation would be held in October 2023. With regard to the Delaware III litigation, Boston Scientific filed inter partes review petitions against three of the five asserted patents; specifically, U.S. Patent Nos. 8,829,209; 10,576,286; and 10,556,112. The PTAB’s institution decisions for these inter partes reviews were expected in August 2022. However, Boston Scientific’s inter partes review petitions were withdrawn as a result of the settlement discussed below. On August 1, 2022, the Company finalized its agreement with Boston Scientific to settle their ongoing intellectual property litigations. Pursuant to the parties’ settlement, Nevro received a net payment from Boston Scientific of $ 85.0 million in cash, and Boston Scientific released the $ 20.0 million verdict it was awarded by a Delaware jury on November 1, 2021 in the aforementioned Delaware I case. As a result of the release, Nevro reversed the liability related to the $ 20.0 million loss contingency that it accrued in the period ended September 30, 2021. In addition, Nevro granted Boston Scientific a worldwide, non-exclusive, non-transferable license to practice paresthesia-free therapy at frequencies below 1,500 Hz and a covenant not to sue for any features embodied in any current Boston Scientific products for frequencies below 1,500 Hz. Boston Scientific also granted Nevro a worldwide, non-exclusive, non-transferable license under Boston Scientific’s asserted patent families and a covenant not to sue for any features embodied in any current Nevro products. The settlement gives Boston Scientific the freedom to operate using the features and capabilities embodied in its current line of products for frequencies below 1,500 Hz, and gives the Company the freedom to operate using the features and capabilities embodied in its current line of products. The settlement concluded all of the existing litigations between Nevro and Boston Scientific. Stimwave Litigation On February 14, 2019, the Company filed a lawsuit for patent infringement against Stimwave Technologies, Inc. (Stimwave) in the Delaware Court asserting that Stimwave was infringing the Company’s patents covering inventions related to its 10 kHz Therapy and the Senza system, as well as a claim for false advertising under the Lanham Action Section 43(a), 15 U.S.C. § 1125(a). In relation to this lawsuit, on July 24, 2019, the Delaware Court granted the Company’s motion for preliminary injunction, and issued an order barring Stimwave, and all affiliated persons and entities, from infringing patent claims covering frequencies between 3 kHz and 10 kHz. On February 27, 2020, the Company and Stimwave entered into a Settlement Agreement, in which Stimwave agreed to cease commercialization of all high frequency spinal cord stimulation systems worldwide. Stimwave also agreed to entry of a permanent injunction in the Delaware Court, under which Stimwave’s products will not deliver spinal cord stimulation therapy that includes pulse frequencies between 1,500 Hz and 100,000 Hz. The permanent injunction was filed with the Delaware Court and entered on March 2, 2020. After the Delaware Court entered the permanent injunction, the case (including Stimwave’s appeal of the preliminary injunction order) were dismissed. As part of the permanent injunction filing, Stimwave acknowledged the validity of the patents Nevro asserted in the litigation. Per the Company’s request, the permanent injunction order does not enjoin Stimwave from providing follow-up care and programming for any patients who were already programmed with high frequency therapy in the United States prior to March 6, 2020, and in the rest of the world prior to April 30, 2020. Nalu Litigation On February 28, 2020, the Company filed a lawsuit in the Delaware Court for patent infringement against Nalu Medical, Inc. (Nalu) asserting that Nalu is infringing the Company’s patents covering inventions related to its 10 kHz Therapy and the Senza system. The Company’s patent infringement assertions were based, in part, on Nalu imbedding a high frequency SCS therapy in a version of its “PSP” waveform. During the litigation, Nalu modified its PSP waveform so that it no longer included an imbedded high frequency signal. As a result, on December 21, 2021, the Company announced that it had reached a favorable settlement agreement with Nalu to terminate the litigation. The Company is and may from time to time continue to be involved in various legal proceedings to defend its intellectual property, including several pending European patent oppositions at the European Patent Office (EPO) initiated by the Company’s competitors Medtronic and Boston Scientific, an entitlement action filed by Boston Scientific in Germany, and an invalidity proceeding in China. In addition, the Company is and may from time to time also be involved in various legal proceedings of a character normally incident to the ordinary course of business, such as employment matters, product liability matters, and professional liability matters, which the Company does not deem to be material to its business and condensed consolidated financial statements at this stage. Flathead Partners Litigation/Arbitration On July 15, 2022, the Company filed a lawsuit in the U.S. District Court for the Northern District of California for breach of contract against Flathead Partners, LLC, the Mayo Foundation for Medical Education and Research, and Mayo Clinic Ventures (herein referred to as “Flathead Partners”). The Company’s suit alleged that Flathead Partners breached the 2006 license agreement between the Company and the Mayo Clinic (referred to in the Company’s 10-K filing as the “Mayo License”), when Flathead Partners unilaterally asserted control of pending U.S. Patent Application 16/286,389 (the “’389 Application”), which is subject to the Mayo License. The suit sought to enjoin the Flathead Partners from taking any action at the U.S. Patent Office with respect to the ‘389 Application, and to thereafter engage in an arbitration as called for in the Mayo License. On July 27, 2022, the Flathead Partners agreed to enter into an arbitration to determine which party shall have control of prosecution of the ‘389 Application, and whether there are ongoing royalty obligations under the Mayo License. Therefore, Nevro dismissed the lawsuit in the Northern District of California. The parties have since been engaged in an arbitration. An arbitration hearing was held during the week of September 11, 2023, and a ruling is expected in the first half of 2024. Civil Investigative Demand In December 2022, the Company received a civil investigative demand (CID) pursuant to the federal False Claims Act from the United States Attorney’s Office for the Northern District of California seeking information relating to the Company’s spinal cord stimulation system (SCS System). The CID primarily relates to marketing, promotion and billing practices, not the therapeutic or safety attributes of the Company’s SCS System. The Company maintains rigorous policies and procedures designed to promote compliance with the federal False Claims Act and other regulatory requirements, and is cooperating in this matter and providing the requested information. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 8. Long-term Debt 2021 Notes and Convertible Note Hedge and Warrant Transactions In June 2016, the Company issued $ 150.0 million aggregate principal amount of 1.75 % convertible senior notes due in June 2021 in a registered underwritten public offering and an additional $ 22.5 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2021 Notes). The interest rates were fixed at 1.75% per annum. The total net proceeds from the debt offering, after deducting initial purchase discounts and debt issuance costs, were approximately $ 166.2 million. In accounting for the issuance of the convertible senior notes, prior to the adoption of ASU 2020-06, the Company separated the 2021 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $ 32.9 million and was determined by deducting the fair value of the liability component from the par value of the 2021 Notes. The equity component was not remeasured as it did not meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (debt discount) was amortized to interest expense over the term of the 2021 Notes expense at an effective interest rate of 6.29 % over the contractual terms of the notes. In accounting for the debt issuance costs of $ 6.2 million related to the 2021 Notes, prior to the adoption of ASU 2020-06, the Company allocated the total amount incurred to the liability and equity components of the 2021 Notes based on their relative values. Issuance costs attributable to the liability component were $ 5.0 million and were amortized to interest expense using the effective interest method over the contractual terms of the 2021 Notes. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. On June 1, 2021, the 2021 Notes matured and the Company settled the 2021 Notes. The Company paid $ 172.5 million to settle the outstanding principal and issued 682,912 shares of common stock to holders who elected to convert the 2021 Notes. In addition, the Company exercised its option under the bond hedge and received 682,916 shares of common stock from the bank counterparties. None of the holders of the warrants associated with the 2021 Notes exercised the option to purchase shares. As of December 31, 2021, prior to the adoption of ASU 2020-06, the 2021 Notes were no longer outstanding. The following table sets forth the interest expense recognized related to the 2021 Notes (in thousands): Year Ended December 31, 2021 Contractual interest expense $ 1,266 Amortization of debt discount 3,182 Amortization of debt issuance costs 542 Total interest expense $ 4,990 2025 Notes and Convertible Note Hedge and Warrant Transactions In April 2020, the Company issued $ 165.0 million aggregate principal amount of 2.75 % convertible senior notes due 2025 in a registered underwritten public offering and an additional $ 24.8 million aggregate principal amount of such notes pursuant to underwriters’ exercise in full of their option to purchase additional 2025 Notes. The interest rates are fixed at 2.75% per annum and are payable semi-annually in arrears on April 1 and October 1 of each year, commencing on October 1, 2020 . The total net proceeds from the debt offering, after deducting initial purchase discounts and debt issuance costs, were approximately $ 183.6 million. Each $ 1,000 principal amount of the 2025 Notes will initially be convertible into 9.5238 shares of the Company’s common stock , which is equivalent to an initial conversion price of approximately $ 105.00 per share, subject to adjustment upon the occurrence of specified events. The 2025 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding October 1, 2024, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture to the 2025 Notes) per $1,000 principal amount of notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after October 1, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2025 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. If the Company undergoes a fundamental change prior to the maturity date, holders of the notes may require the Company to repurchase for cash all or any portion of their notes at a repurchase price equal to 100 % of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event in certain circumstances. During the three months ended December 31, 2023 the conditions allowing holders of the 2025 Notes to convert have not been met. Therefore, the 2025 Notes may not be converted during the three months ended March 31, 2024. As of December 31, 2023, the if-converted value of the 2025 Notes did no t exceed the principal value of those notes. In connection with the offering of the 2025 Notes, the Company entered into convertible note hedge transactions with certain bank counterparties in which the Company has the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 1.8 million shares of the Company’s common stock at a price of approximately $ 105.00 per share. The total cost of the convertible note hedge transactions was $ 52.4 million. In addition, the Company sold warrants to certain bank counterparties whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 1.8 million shares of the Company’s common stock at a price of $ 147.00 per share. The Company received $ 34.9 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and the sale of warrants are intended to offset any actual dilution from the conversion of these notes and to effectively increase the overall conversion price from $ 105.00 to $ 147.00 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity and will not be subsequently remeasured as long as they continue to meet the conditions for equity classification. The net cost of $ 17.5 million incurred in connection with the convertible note hedge and warrant transactions was recorded as a reduction to additional paid-in capital on the consolidated balance sheet. In accounting for the issuance of the convertible senior notes, prior to the adoption of ASU 2020-06, the Company separated the 2025 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2025 Notes. The equity component was not remeasured as long as it continued to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (debt discount) was amortized to interest expense over the term of the 2025 Notes expense at an effective interest rate of 10.2 % over the contractual terms of the notes. Upon the adoption of ASU 2020-06 on January 1, 2022, the Company reversed the separation of the debt and equity components and accounted for the 2025 Notes wholly as debt. The Company also reversed the amortization of the debt discount, with a cumulative adjustment to retained earnings on the adoption date. In accounting for the debt issuance costs related to the 2025 Notes, prior to the adoption of ASU 2020-06, the Company allocated the total amount incurred to the liability and equity components of the 2025 Notes based on the same proportion as the accounting for the proceeds from the issuance of the 2025 Notes. Issuance costs attributable to the liability component were to be amortized to interest expense using the effective interest method over the contractual terms of the 2025 Notes. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. Upon the adoption of ASU 2020-06 on January 1, 2022, the Company reversed the allocation of the issuance costs to the equity component and accounted for the entire amount as debt issuance cost to be amortized as interest expense over the remaining term of the 2025 Notes, with a cumulative adjustment to retained earnings on the adoption date. The effective interest rate for the 2025 Notes was 3.5 % in the year ended December 31, 2023 and 2022 and 10.2 % in the year ended December 31, 2021. The decrease in the effective interest rate is due to the elimination of interest expense related to the conversion feature of the 2025 Notes as a result of adopting ASU 2020-06. See Note 2 for the cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2022 for the adoption of ASU 2020-06. In December 2023, the Company entered into separate, privately negotiated agreements with a limited number of holders of the 2025 Notes and repurchased $ 151.7 million of the outstanding 2025 Notes. The Company paid $ 146.4 million in cash for the principal outstanding. The difference between the total payment and the principal amount, as well as the release of $ 1.4 million in debt issuance costs associated with these notes, was recorded in the statement of operations as a gain on extinguishment of debt. The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): December 31, 2023 2022 Principal $ 38,038 $ 189,750 Unamortized issuance cost ( 326 ) ( 2,883 ) Net carrying amount $ 37,712 $ 186,867 The following table sets forth the interest expense recognized related to the 2025 Notes (in thousands): Years Ended December 31, 2023 2022 2021 Contractual interest expense $ 4,917 $ 5,218 $ 5,218 Amortization of debt discount — — 8,840 Amortization of debt issuance costs 1,180 1,212 699 Total interest expense $ 6,097 $ 6,430 $ 14,757 Credit Agreement with Braidwell LP In November 2023, the Company, as borrower, and its wholly-owned subsidiary, Nevro Medical CR, LLC (Nevro CR and, together with the Company, the “Obligors”), as guarantor, entered into a Credit Agreement and Guaranty (the Braidwell Credit Agreement) with funds managed by Braidwell LP (together with its affiliates, Braidwell), as a lender (in such capacity, the Lender, and together with any other lenders from time to time party to the Braidwell Credit Agreement, the Lenders), and Wilmington Trust, National Association, as administrative agent for the Lenders. The Credit Agreement provides for a term loan facility in the amount of $ 200.0 million, which was funded in its entirety in November 2023. The total net proceeds from the Credit Agreement, after deducting initial debt issuance costs, were approximately $ 194.2 million. Loans borrowed pursuant to the Credit Agreement (the Braidwell Term Loans) bear interest at a rate per annum equal to Term Secured Overnight Financing Rate (as defined in the Credit Agreement and with a floor of 3.50 %) plus 5.25 %. At the option of the Company, a portion of the interest payable on the Braidwell Term Loans equal to (i) (a) on or prior to the first anniversary of the Closing Date (as defined in the Credit Agreement), 5.25 %, (b) following the first anniversary of the Closing Date and on or prior to the third anniversary of the Closing Date, 2.50 % and (c) following the third anniversary of the Closing Date, 1.50 %, may be paid in-kind rather than in cash. The Braidwell Term Loans do not amortize, and have a maturity date of November 30, 2029. The Company is obligated to pay certain agency fees in connection with the Credit Agreement. The Company may prepay or repay all or a portion of the outstanding principal and accrued unpaid interest under the Braidwell Credit Agreement at any time upon prior notice to the Lender subject to (i) an early prepayment fee on the portion of principal prepaid or repaid equal to, for any prepayment or repayment (A) on or prior to the first anniversary of the Closing Date, 4.0 %, (B) after the first anniversary of the Closing Date and on or prior to the second anniversary of the Closing Date, 3.0 %, (C) after the second anniversary of the Closing Date and on or prior to the third anniversary of the Closing Date, 2.0 %, (D) after the third anniversary of the Closing Date and on or prior to the fourth anniversary of the Closing Date, 1.0 % and (E) after the fourth anniversary of the Closing Date, 0.0 % and (ii) an exit fee equal to 3.00 % of the principal amount of any prepayment or repayment of the Braidwell Term Loans. The Braidwell Credit Agreement contains customary mandatory prepayment provisions. Once repaid or prepaid, the Braidwell Term Loans may not be reborrowed. The Braidwell Credit Agreement includes representations and warranties and covenants, including affirmative covenants and negative covenants that restrict the Obligors’ and their subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, make investments, dispose of assets, make acquisitions, pay dividends or make distributions, repurchase stock and enter into certain transactions with affiliates, in each case subject to certain exceptions. The Braidwell Credit Agreement also has a financial covenant requiring the Company and its subsidiaries to maintain, as of the last day of each fiscal quarter ending after the Closing Date, at least $ 300.0 million in trailing twelve month revenue; provided that a failure of the Company and its subsidiaries to maintain such minimum revenue shall not be an event of default under the Braidwell Credit Agreement unless such failure continues for three consecutive fiscal quarters, so long as the Company and its subsidiaries maintain at least $ 75.0 million of liquidity at all times starting from the first day after the first fiscal quarter in which the foregoing financial covenant is not met and ending on the date the Company delivers a certificate to the Agent evidencing compliance with the foregoing financial covenant. As of December 31, 2023, the Company was in compliance with covenants under the Braidwell Credit Agreement. The Braidwell Credit Agreement also contains customary events of default, including among other things, the Company’s failure to make any principal or interest payments when due, the occurrence of certain bankruptcy or insolvency events, or the Company’s breach of the covenants under the Braidwell Credit Agreement. Upon the occurrence of an event of default, the Lenders may, among other things, accelerate the Company’s obligations under the Braidwell Credit Agreement. As security for their obligations under the Braidwell Credit Agreement, the Obligors granted the Agent (for the benefit of the secured parties) a continuing security interest in substantially all of their assets (including intellectual property), subject to certain customary exceptions. In connection with the Credit Agreement, the Company issued to Braidwell warrants to purchase an aggregate of 2,587,742 shares of the Company’s common stock, par value $ 0.0001 per share (the Braidwell Warrants). The Braidwell Warrants are exercisable in whole or in part at an exercise price of $ 23.1862 per share and expire on the sixth anniversary of issuance. The warrant holder may pay the exercise price in cash (including through a reduction in principal amount of the Braidwell Term Loans), or elect to exercise the warrants on a “cashless” basis. The Braidwell Warrants prohibit any exercise by a holder to the extent that, following such exercise, the holder, together with any affiliates and “group” members (as such term is used under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), would beneficially own more than a fixed percentage of the total number of shares of the Company’s issued and outstanding common stock (the “Beneficial Ownership Cap”), initially 4.99 % and increasable or decreasable, at the Warrant holder’s election upon 61 days’ notice to the Company. The fair value of the Braidwell Warrants is recorded in Warrant liability on the Consolidated Balance Sheet. Proceeds from the Braidwell Term Loans were used (i) to fund a portion of the consideration paid in respect of the Vyrsa Acquisition, (ii) to repurchase a portion of the 2025 Notes from a limited number of holders, and (iii) for the payment of fees and expenses associated with the Braidwell Credit Agreement, the Vyrsa Acquisition and the repurchase of a portion of the 2025 Notes. The net carrying amount of the liability component of the Braidwell Term Loans was as follows (in thousands): December 31, 2023 Principal, accrued non-cash interest and fees $ 207,801 Unamortized issuance cost ( 34,042 ) Net carrying amount $ 173,759 The following table sets forth the interest expense recognized related to the Braidwell Term Loans (in thousands): Year Ended December 31, 2023 Contractual interest expense $ 1,708 Amortization of debt issuance costs 209 Total interest expense $ 1,917 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisition | 9. Acquisition On November 30, 2023, the Company entered into a stock purchase agreement (the Purchase Agreement) pursuant to which it acquired all of the issued and outstanding shares of Interventional Pain Technologies, Inc. d/b/a Vyrsa Technologies (Vyrsa), a privately held medical technology company focused on a minimally invasive treatment option for patients suffering from chronic sacroiliac joint (SI Joint) pain (the Vyrsa Acquisition). The Company acquired Vyrsa as it provided the Company with entry into the SI Joint market. Under the terms of the Purchase Agreement, the Company acquired all of the issued and outstanding equity interests of Vyrsa for an up-front aggregate cash consideration of approximately $ 38.0 million, net of cash acquired. The Company has also agreed to pay up to an additional $ 35.0 million in cash or common stock of the Company tied to achievement of certain development and sales milestones. The Vyrsa Acquisition was completed on November 30, 2023. Stock options were originally issued to employees and consultants (the participants) of Vyrsa in connection with and as a part of the compensation and incentive arrangements between Vyrsa and its participants. A portion of these stock options vested immediately upon closing of the Vyrsa Acquisition. At the time of the closing of the Vyrsa Acquisition, the value of these options was $ 1.9 million and were paid in addition to the $ 38.0 million cash consideration. The value of these options was recorded in operating expenses of the Company's statement of operations. Purchase Price Allocation The purchase price was comprised of the amount presented as follows (in thousands): Cash consideration $ 38,022 Contingent consideration 22,093 $ 60,115 The final purchase price allocation was comprised of the following (in thousands): Current assets $ 1,725 Tangible fixed assets 418 Developed technology and other intangibles 27,600 Deferred tax liabilities ( 6,806 ) Other liabilities ( 986 ) Goodwill 38,164 $ 60,115 Goodwill was primarily established due to synergies expected to be gained from leveraging our existing operations, as well as revenue and cash flow projections associated with future technologies. The developed technology and customer relationships are allocated as follows (in thousands): Amount Assigned Amortization Period Developed technology $ 26,800 10 years Customer relationships 800 3 years Developed technology relates to products used to treat chronic SI Joint pain. The Company valued the developed technology using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the developed technology less charges representing the contribution of other assets to those cash flows. The economic useful life was determined based on the technology cycle related to the developed technology, as well as the cash flows over the forecast period. Estimates in valuing the developed technology included forecasted implant volumes and the technological obsolescence rate. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 10. Goodwill and Intangible Assets Goodwill Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net tangible and identifiable intangible assets acquired. As of December 31, 2023 goodwill was $ 38.2 million. The gross carrying amount of goodwill is subject to impairment charges. To date, the Company has zero accumulated impairment loss on goodwill. Intangible Assets The following table presents details of the Company’s intangible assets as of December 31, 2023 (in thousands): December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Useful Life (years) Intangible assets with finite lives: Developed technology $ 26,800 $ ( 223 ) $ 26,577 10 Customer relationships 800 ( 23 ) 777 3 Total $ 27,600 $ ( 246 ) $ 27,354 Amortization of intangibles was $ 0.2 million for the year ended December 31, 2023. Future amortization expense of these intangibles assets as of December 31, 2023 is as follows (in thousands): Future Amortization Expense 2024 $ 2,947 2025 2,947 2026 2,924 2027 2,680 2028 2,680 Thereafter 13,176 Total $ 27,354 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation Common stock reserved for future issuance as of December 31, 2023 was as follows: Shares Outstanding stock options and awards 3,292,033 Reserved for grants of future stock options and awards 6,765,333 Reserved for employee stock purchase plan 1,189,229 Total common stock reserved for future issuance 11,246,595 Stock Plans The Company’s Board of Directors (Board) and stockholders previously approved the 2007 Stock Option Plan (the 2007 Plan). In October 2014, the Board adopted the 2014 Equity Incentive Award Plan (the 2014 Plan and, together with the 2007 Plan, the Stock Plans). As of the effective date of the 2014 Plan, the Company suspended the 2007 Plan and no additional awards may be granted under the 2007 Plan. Any shares of common stock covered by awards granted under the 2007 Plan that terminate after the effective date of the 2014 Plan by expiration, forfeiture, cancellation or other means without the issuance of such shares, will be added to the 2014 Plan reserve. In April 2023, the Board adopted the 2023 Employment Inducement Award Plan, under which the Company granted restricted stock units and performance-stock units to its current CEO. Under the 2014 Plan, 1,854,166 shares of common stock were initially reserved for issuance, plus the number of shares remaining available for future awards under the 2007 Plan, as of the pricing of the IPO. The number of shares initially reserved for issuance under the 2014 Plan is subject to increase by (i) the number of shares represented by awards outstanding under the 2007 Plan that are forfeited or lapse unexercised and which following the pricing date are not issued under the 2007 Plan, and (ii) an annual increase on January 1 of each year. Under the 2014 Plan, the Company may grant awards such as incentive stock options, nonstatutory stock options, restricted stock units, performance stock units and stock appreciation rights. Incentive stock options (ISO) may be granted only to Company employees (including directors who are also employees). Nonqualified stock options (NSO) may be granted to Company employees, directors and consultants. A summary of shares available for grant under the Stock Plans is as follows: Shares Available for Grant Balance at December 31, 2020 4,600,181 Additional shares reserved 1,383,322 Allowance for PSU for overperformance ( 24,830 ) Shares forfeited for tax 58,787 Options, RSUs and PSUs granted ( 425,266 ) Options, RSUs and PSUs cancelled 140,101 Balance at December 31, 2021 5,732,295 Additional shares reserved 1,401,066 Allowance for PSU for overperformance 158,360 Shares forfeited for tax 137,638 Options, RSUs and PSUs granted ( 1,264,636 ) Options, RSUs and PSUs cancelled 230,197 Balance at December 31, 2022 6,394,920 Additional shares reserved 1,820,820 Allowance for PSU for overperformance ( 270,820 ) Shares forfeited for tax 177,036 Options, RSUs and PSUs granted ( 2,319,700 ) Options, RSUs and PSUs cancelled 504,042 Balance at December 31, 2023 6,306,298 Stock Options Options under the 2014 Plan may be granted for periods of up to ten years and at prices no less than 100 % of the estimated fair market value of the shares on the date of grant as determined by the Board, provided, however, that the exercise price of an ISO or an NSO granted to a 10 % stockholder shall not be less than 110 % of the estimated fair market value of the shares on the date of grant. Upon the exercise of options, the Company issues new common stock from its authorized shares. The vesting provisions of individual options vary but are generally over four years , with the exception of performance-based stock options. A summary of stock option activity under the Stock Plans is as follows: Options Outstanding Number of Options Weighted Average Exercise Price Weighted Average Remaining Aggregate Intrinsic Value (in years) (in thousands) Outstanding at December 31, 2020 813,150 $ 54.69 5.9 $ 96,286 Options exercised ( 90,582 ) $ 47.82 $ 6,948 Options cancelled ( 21,914 ) $ 43.52 Outstanding at December 31, 2021 700,654 $ 55.93 4.8 $ 18,287 Options exercised ( 26,091 ) $ 46.10 $ 386 Options cancelled ( 67,778 ) $ 77.14 Outstanding at December 31, 2022 606,785 $ 53.98 4.3 $ 2,379 Options exercised ( 83,058 ) $ 17.52 $ 1,482 Options cancelled ( 137,209 ) $ 60.54 Outstanding at December 31, 2023 386,518 $ 59.48 3.1 $ 87 Options exercisable as of December 31, 2023 386,518 $ 59.48 3.1 $ 87 Options vested, exercisable or expected to 386,518 $ 59.48 3.1 $ 87 The aggregate intrinsic value of options exercised is the difference between the estimated fair market value of the Company’s common stock at the date of exercise and the exercise price for in-the-money options. The aggregate intrinsic value of outstanding options is the difference between the closing price as of the date outstanding and the exercise price of the underlying stock options. No options were granted during the years ended December 31, 2023, 2022 and 2021. The total fair value of options vested during the years ended December 31, 2023, 2022 and 2021 was approximately $ 0.6 million, $ 2.1 million and $ 3.1 million, respectively, based on the grant date fair value. The options outstanding and vested under the Stock Plans by exercise price, at December 31, 2023, were as follows: Options Outstanding Options Vested Weighted Average Remaining Number Contractual Term Weighted Average Number Weighted Average Exercise Price Outstanding (in years) Exercise Price Exercisable Exercise Price $ 3.60 — $ 38.79 41,651 1.82 $ 26.58 41,651 $ 26.58 $ 42.30 72,230 4.91 $ 42.30 72,230 $ 42.30 $ 43.79 — $ 60.60 40,409 1.97 $ 49.66 40,409 $ 49.66 $ 63.23 86,361 1.92 $ 63.23 86,361 $ 63.23 $ 63.39 — $ 76.81 100,467 3.89 $ 71.57 100,467 $ 71.57 $ 86.90 — $ 97.52 45,400 2.93 $ 91.90 45,400 $ 91.90 $ 3.60 — $ 97.52 386,518 3.10 $ 59.48 386,518 $ 59.48 Restricted Stock Units In 2015, the Company began granting restricted stock units (RSUs) under the 2014 Plan. Holders of RSUs do not have stockholder rights. Upon the release of RSUs, the Company issues new common stock from its authorized shares. RSUs generally vest three to four years from the date of grant. A summary of RSU activity under the Stock Plans was as follows: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2020 852,977 $ 79.87 $ 147,650 Restricted stock granted 368,230 $ 146.64 Restricted stock released ( 346,602 ) $ 76.26 $ 22,902 Restricted stock cancelled ( 110,799 ) $ 98.76 Outstanding at December 31, 2021 763,806 $ 110.96 $ 61,922 Restricted stock granted 835,361 $ 63.70 Restricted stock released ( 327,297 ) $ 94.24 $ 1,351 Restricted stock cancelled ( 118,007 ) $ 94.99 Outstanding at December 31, 2022 1,153,863 $ 83.13 $ 45,693 Restricted stock granted 1,948,825 $ 28.12 Restricted stock released ( 687,119 ) $ 74.26 $ 3 Restricted stock cancelled ( 230,029 ) $ 58.53 Outstanding at December 31, 2023 2,185,540 $ 39.45 $ 47,033 Restricted stock expected to vest as of 2,010,850 $ 39.89 $ 43,273 The aggregate intrinsic value of RSUs released is calculated using the fair market value of the Company’s common stock at the date of release. The aggregate intrinsic value of outstanding RSUs is calculated based on the closing price of the Company’s common stock as of the date outstanding. Performance Stock Units In March 2019, the Company granted performance stock units (PSUs) to the former CEO, subject to his continued service to the Company and based on the total shareholder return (the TSR) of the Company’s common stock price compared to the S&P Healthcare Equipment Select Industry Index (the Index) over a three-year period. The number of shares to be issued upon vesting of these PSUs range from 0 to 3.5 times the target number of shares granted, depending on the Company’s performance against the targeted composite index. In March 2020, the Company granted PSUs to certain members of the management team. The number of shares to be issued upon vesting was based on the total shareholder return of the Company’s common stock compared to the Index, as well as certain performance criteria related to a specific financial target over a two-year performance period. For the three months ended March 31, 2020, the Company determined that the achievement status for these PSUs was not possible, and therefore did not record stock-based compensation expenses related to these grants. In 2021, the Company granted PSUs to certain members of the management team, subject to continued service to the Company and based on the TSR of the Company’s common stock price compared to the Index over a two-year period. The number of shares to be issued upon vesting of these PSUs range from 0 to 1.5 times the target number of shares granted, depending on the Company’s performance against the targeted composite index. In 2022 and 2023, the Company granted PSUs to certain members of the management team, subject to continued service to the Company and based on the TSR of the Company’s common stock price compared to the Index over a two-year period, as well as a specific financial target over a two-year performance period. The number of shares to be issued upon vesting of these PSUs range from 0 to 2 times the target number of shares granted, depending on the Company’s performance against the targeted composite index and the financial target. Additionally, in 2022, the Company granted PSUs to the former CEO based on the attainment of certain specified stock prices. A summary of PSU grant activity under the Stock Plans was as follows: Years Ended December 31, 2023 2022 2021 Shares Weighted Average Fair Value Shares Weighted Average Fair Value Shares Weighted Average Fair Value Total shareholder return 185,424 $ 43.89 71,364 $ 105.12 57,036 $ 183.20 Revenue targets 185,451 $ 31.39 71,378 $ 70.76 — $ — Stock price performance — $ — 250,000 $ 34.05 — $ — Total PSUs granted 370,875 $ 37.64 392,742 $ 53.64 57,036 $ 183.20 A summary of PSU activity under the Stock Plans was as follows: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2020 199,037 $ 94.20 $ 34,453 PSU granted 57,036 $ 183.20 PSU cancelled ( 7,388 ) $ 136.77 Outstanding at December 31, 2021 248,685 $ 113.35 $ 20,161 PSU granted 392,742 $ 53.64 PSU granted from overachievement 36,533 $ 67.29 PSU released ( 147,644 ) $ 67.29 $ 3,294 PSU cancelled ( 44,412 ) $ 128.64 Outstanding at December 31, 2022 485,904 $ 74.22 $ 19,242 PSU granted 370,875 $ 37.64 PSU cancelled ( 136,804 ) $ 110.86 Outstanding at December 31, 2023 719,975 $ 48.41 $ 15,494 PSU expected to vest as of 572,485 $ 50.93 $ 12,320 The aggregate intrinsic value of outstanding PSUs is calculated based on the closing price of the Company’s common stock as of the date outstanding. 2014 Employee Stock Purchase Plan In October 2014, the Board adopted the 2014 Employee Stock Purchase Plan (the ESPP). A total of 196,666 shares of common stock were initially available for future issuance under the 2014 Employee Stock Purchase Plan, subject to an annual increase on January 1 of each year. The ESPP provides eligible employees with an opportunity to purchase shares of the Company’s common stock through payroll deductions of up to 15 % of their eligible compensation, subject to plan limitations. Under the ESPP, the purchase price of the Company stock is equal to 85 % of the lower of its fair market value at the start and end of a six-month purchase period. A summary of ESPP activity was as follows: December 31, 2023 2022 2021 Additional shares reserved — — 235,590 Shares issued 247,826 130,459 65,197 Shares available for future issuance 1,189,229 1,437,055 1,567,514 Employee contributions for shares issued (in thousands) $ 5,086 $ 5,191 $ 6,849 Employee Stock-Based Compensation The Company estimated the fair value of stock options granted to employees and shares purchased by employees under the ESPP using the Black-Scholes option valuation model. The fair value is amortized on a straight-line basis over the requisite service period of the awards, with the exception of performance based stock options whose fair value is recorded as expenses based on the probability that the performance metrics will be achieved. The following assumptions were used in estimating the fair value: Years Ended December 31, 2023 2022 2021 ESPP: Expected term (in years) 0.5 0.5 0.5 Expected volatility 56 % — 57 % 63 % — 72 % 36 % — 49 % Risk-free interest rate 5.3 % — 5.4 % 1.5 % — 4.5 % 0.1 % Dividend Yield 0 % 0 % 0 % The Company accounts for RSUs at their fair value, based on the closing market price of the Company’s common stock on the grant date. The fair value is amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting term of three to four years . From 2020 to 2023, the Company granted PSUs to the CEO and other members of its management team that vest based on the total shareholder return (TSR) of the Company common stock price relative to that of the Index. Additionally, in 2022, the Company granted PSUs to the CEO based on the attainment of certain specified stock prices. For the PSUs that vest based on the TSR and stock price, the Company estimates the grant-date fair value based on the Monte Carlo simulation model and records the related stock-based compensation over the vesting period, which is generally two to three years . The use of the Monte Carlo simulation model requires the input the following assumptions: Years Ended December 31, 2023 2022 2021 Index volatility 45 % — 47 % 54 % 51 % — 53 % Company volatility 58 % — 62 % 53 % — 54 % 49 % — 54 % Risk-free interest rate 4.1 % — 5.0 % 1.3 % — 1.7 % 0.1 % — 0.3 % Correlation with index 0.37 — 0.38 0.33 0.32 — 0.35 Dividend Yield 0 % 0 % 0 % In 2022 and 2023, the Company also granted PSUs to the CEO and other members of its management team that vest based on a specific financial target. The Company estimates the grant-date fair value of these PSUs based on the closing market price of the Company's common stock on the grant date, as well as the impact of estimated probability that the goals would be achieved. As of December 31, 2023, the probability was estimated to be 96 % to 100 % for the PSU's granted in 2023 and 95 % for the PSU's granted in 2022. A summary of stock-based compensation expense by line items in the consolidated statements of operations is as follows (in thousands): Years Ended December 31, 2023 2022 2021 Cost of revenue $ 2,490 $ 2,404 $ 1,637 Research and development 9,856 8,680 6,455 Sales, general and administrative 44,519 45,714 36,273 Total stock-based compensation expense $ 56,865 $ 56,798 $ 44,365 A summary of pre-tax stock-based compensation expense by category was as follows (in thousands): Years Ended December 31, 2023 2022 2021 Stock options $ 539 $ 2,056 $ 2,997 Restricted stock units 44,838 37,496 29,234 Performance stock units 9,429 15,207 10,017 Employee stock purchase plan 2,059 2,039 2,117 Total stock-based compensation expense $ 56,865 $ 56,798 $ 44,365 As of December 31, 2023, total stock-based compensation expense not yet recognized, net of estimated forfeitures, are as follows: Unrecognized Weighted-Average Compensation Amortization Period (in thousands) (in years) Restricted stock units $ 63,384 2.1 Performance stock units 9,711 1.2 Employee stock purchase plan 755 0.4 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The components of the Company’s income / (loss) before income taxes were as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Domestic $ ( 100,501 ) $ 2,185 $ ( 129,135 ) Foreign 2,642 2,079 ( 1,691 ) Total income (loss) before income taxes $ ( 97,859 ) $ 4,264 $ ( 130,826 ) The components of the expense / (benefit) for income taxes are as follows (in thousands): Years Ended December 31, 2023 2022 2021 Current: Federal $ — $ — $ — State 424 363 244 Foreign 835 809 585 Total current income tax expense / (benefit) 1,259 1,172 829 Deferred: Federal ( 5,774 ) — — State ( 991 ) — — Foreign ( 140 ) 91 ( 295 ) Total deferred income tax expense / (benefit) ( 6,905 ) 91 ( 295 ) Total income tax expense / (benefit) $ ( 5,646 ) $ 1,263 $ 534 Income tax expense differs from the amount computed by applying the statutory federal income tax rate as follows: Years Ended December 31, 2023 2022 2021 Tax at statutory federal rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit ( 0.4 )% 6.7 % ( 0.2 )% Foreign rate differential ( 0.7 )% 14.8 % ( 0.4 )% Tax credits 1.2 % ( 0.9 )% 3.0 % Stock-based compensation ( 8.3 )% 110.7 % ( 0.2 )% Change in valuation allowance 3.2 % ( 140.1 )% ( 23.3 )% Release of valuation allowance ( 6.8 )% 0.0 % 0.0 % Warrant remeasurement ( 1.7 )% 0.0 % 0.0 % Other permanent differences ( 1.2 )% 22.5 % ( 0.4 )% Other ( 0.6 )% ( 5.1 )% 0.1 % Total 5.7 % 29.6 % ( 0.4 )% The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities are as follows: December 31, 2023 2022 (in thousands) Net operating loss carryforwards $ 142,332 $ 138,583 Tax credits 28,778 25,675 Depreciation 1,011 652 Stock-based compensation 5,604 7,478 Accruals and reserves 11,703 12,326 Right of use asset 1,945 3,165 R&D capitalization 21,275 10,228 Bond hedge 3,827 6,593 Other ( 392 ) 214 Gross deferred tax assets 216,083 204,914 Valuation allowance ( 206,327 ) ( 200,977 ) Deferred tax assets 9,756 3,937 Lease liabilities ( 1,642 ) ( 2,695 ) Intangibles ( 6,734 ) — Deferred tax liabilities ( 8,376 ) ( 2,695 ) Net deferred tax assets $ 1,380 $ 1,242 Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, substantially all of the net deferred tax assets have been offset by a valuation allowance. The valuation allowance increased by $ 5.4 million for the year ended December 31, 2023 , decreased by $ 0.1 million for the year ended December 31, 2022 and increased by $ 36.8 million for the year ended December 31, 2021. As of December 31, 2023 , the Company had federal net operating loss carryforwards (NOLs) of approximately $ 543.2 million, of which $ 344.1 million was generated in fiscal year 2018 and thereafter, which can be carried forward indefinitely under the 2017 Tax Act, as well as state NOLs of approximately $ 337.1 million, of which $ 82.2 million may be carried forward indefinitely. If not utilized, the remaining federal NOLs will begin to expire in 2032 , and the remaining state NOLs will begin to expire in 2024 . As of December 31, 2023 , the Company had research and development credit carryforwards of approximately $ 22.1 million and $ 17.9 million for federal and California state income tax purposes, respectively. The federal credit carryforward begins expiring in 2026, and the state credits carry forward indefinitely. Under Section 382 of the Internal Revenue Code of 1986, as amended, the Company’s ability to utilize NOLs or other tax attributes such as research tax credits, in any taxable year may be limited if the Company experiences, or has experienced, a Section 382 “ownership change.” A Section 382 “ownership change” generally occurs if one or more stockholders or groups of stockholders, who own at least 5% of the Company’s stock, increase their ownership by a greater than 50 percentage point change (by value) over a rolling three-year period. Similar rules may apply under state tax laws. As a result of the Company’s June 2015 underwritten public offering, the Company experienced a Section 382 “ownership change.” The Company currently estimates that this “ownership change” will not inhibit its ability to utilize its NOLs. However, the Company may, in the future, experience one or more additional Section 382 “ownership changes” as a result of subsequent changes in its stock ownership, some of which changes are outside the Company’s control. If so, the Company may not be able to utilize a material portion of its NOLs and tax credits, even if the Company achieves profitability. The Company had unrecognized tax benefits (UTBs) of approximately $ 11.9 million as of December 31, 2023 . The following table summarizes the activity related to UTBs (in thousands): Balance at December 31, 2020 $ 8,220 Increases related to current year tax provisions 1,412 Increases related to prior year tax provisions 860 Decreases related to prior year tax provisions ( 62 ) Balance at December 31, 2021 10,430 Increases related to current year tax provisions 956 Decreases related to prior year tax provisions ( 663 ) Balance at December 31, 2022 10,723 Increases related to current year tax provisions 1,011 Increases related to prior year tax provisions 229 Decreases related to prior year tax provisions ( 91 ) Balance at December 31, 2023 $ 11,872 If these UTBs were recognized, approximately $ 11.9 million would affect the effective tax rate before consideration of the valuation allowance. The Company files U.S. federal and state income tax and foreign income tax returns with varying statutes of limitations. The Company’s U.S. federal and the majority of state tax years from inception in 2006 onward will remain open to examination due to the carryover of the unused NOLs and tax credits. The Company does not have any material active tax audits or other proceedings pending, and believes it has provided adequate reserves for all tax deficiencies or reductions in tax benefits that could result from federal, state and foreign tax audits. The Company does not expect any material changes to the estimated amount of liability associated with its uncertain tax positions within the next twelve months. In accordance with ASC 740, Income Taxes , the Company is classifying interest and penalties as a component of tax expense. There was $ 0.2 million, $ 0.2 million and $ 0.2 million of interest and penalties accrued at each of December 31, 2023, 2022 and 2021, respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 13. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net loss by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period, if inclusion of these is dilutive. Upon adoption of ASU 2020-06 on January 1, 2022, the Company uses the if-converted method and presumes share settlement for its 2025 Notes when calculating the dilutive effect of these notes. Prior to the adoption, the Company applied the treasury stock method when calculating the potential dilutive effect, if any, of the convertible senior notes which were intended to settle or have settled in cash the principal outstanding. Furthermore, in connection with the offerings of the convertible senior notes, the Company entered into convertible note hedges and warrants. However, the convertible note hedges are not included when calculating potentially dilutive shares since their effect is always anti-dilutive. Warrants were considered anti-dilutive to the extent that their strike price were above the Company's average share price during the period. The following table presents the net income (loss) used in computing basic and diluted net income (loss) per common share (in thousands): Years Ended December 31, 2023 2022 2021 Net income (loss) used in basic and diluted net income (loss) per common share $ ( 92,213 ) $ 3,001 $ ( 131,360 ) The following table presents the reconciliation of weighted average shares used in computing basic and diluted net income (loss) per common share: Years Ended December 31, 2023 2022 2021 Weighted average shares used to compute basic 35,981,431 35,317,644 34,823,258 Plus effect of dilutive securities: Stock-based awards from employee equity plans — 207,611 — Weighted average shares used to compute 35,981,431 35,525,255 34,823,258 The following table presents the net income (loss) per common share - basic and diluted: Years Ended December 31, 2023 2022 2021 Net income (loss) per common share: Basic $ ( 2.56 ) $ 0.08 $ ( 3.77 ) Diluted $ ( 2.56 ) $ 0.08 $ ( 3.77 ) Because the Company has reported a net loss for the years ended December 31, 2023 and 2021, the diluted net loss per common share is the same as basic net loss per common share for those periods. The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding, as the effect would be anti-dilutive: December 31, 2023 2022 2021 Stock-based awards from employee equity plans 3,292,033 1,394,189 1,713,145 Convertible senior notes 362,267 1,807,141 1,807,141 Warrants related to the issuance of convertible senior notes 1,807,141 1,807,141 1,807,141 Warrants related term debt 2,587,742 — — Total 8,049,183 5,008,471 5,327,427 . |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | 14. Employee Benefit Plan In 2007, the Company adopted a 401(K) plan for its employees whereby eligible employees may contribute up to the maximum amount permitted by the Internal Revenue Code of 1986, as amended. In June 2016, the Company adopted a policy to match a portion of employee contributions for all qualified employees participating in the 401(k) plan. For the years ended December 31, 2023, 2022 and 2021, the Company recorded expenses of $ 3.6 million, $ 3.6 million and $ 2.9 million for matching contributions, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Event On January 6, 2024, the Company approved a restructuring plan that includes laying off 63 employees, which represented approximately 5 % of the Company’s total number of employees (the “Restructuring”). Operating expenses in the first quarter of 2024 will reflect a $ 5 million to $ 6 million restructuring charge, consisting of one-time severance and other termination benefit costs. The Company expects that the Restructuring, including related cash payments, will be substantially complete by the end of the first quarter of 2024.The timing and cost estimates related to the Restructuring are subject to a number of assumptions and actual results may differ materially from those expected and disclosed above. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). The consolidated financial statements include the Company’s accounts and those of its six operational wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Other Risks And Uncertainties | Other Risks and Uncertainties The Company is also subject to risks common to medical device companies, including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, manufacturing quality and scaling, continued reimbursement from third-party payors, uncertainty of market acceptance of products and the need to obtain additional financing. The Company is currently dependent on third-party suppliers, which, in some cases, are sole- or single-source suppliers. Although the Company has developed internal manufacturing capabilities, it will remain dependent on third-party manufacturers and suppliers for individual components. There can be no assurance that the Company’s products or services will continue to be accepted in its existing marketplaces, nor can there be any assurance that any future products or services can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products or services will be successfully marketed, if at all. The Company may choose to raise additional funds to further enhance its research and development efforts, for product expansion opportunities or to acquire a new business or products that are complementary to its business. There can be no assurance that such financing will be available or will be at terms acceptable by the Company. |
Segments | Segments The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied only by information about revenue by geographic region, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level, other than revenue. Accordingly, the Company has determined that it has a single reportable and operating segment structure. The Company and its Chief Executive Officer evaluate performance based primarily on revenue in the geographic locations in which the Company operates. Long-lived assets and operating income outside the United States are not material; therefore, disclosures have been limited to revenue. |
Foreign Currency Translation | Foreign Currency Translation The Company’s consolidated financial statements are prepared in U.S. dollars (USD). Its foreign subsidiaries in Europe and Australia use their local currency as their functional currency and maintain their records in the local currency. Accordingly, the assets and liabilities of these subsidiaries are translated into USD using the current exchange rates in effect at the balance sheet date and equity accounts are translated into USD using historical rates. Revenues and expenses are translated using the monthly average exchange rates during the period when the transaction occurs. The resulting foreign currency translation adjustments from this process are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. Unrealized foreign exchange gains and losses from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of the reporting entity are recorded in other income (expense), net. The Company recorded net unrealized foreign currency transaction gains of $ 0.4 million during the year ended December 31, 2023, gains of $ 3.1 million during the year ended December 31, 2022 and losses of $ 3.3 million during the year ended December 31, 2021. Additionally, realized gains and losses resulting from transactions denominated in currencies other than the local currency are recorded in other income (expense), net. The Company recorded realized foreign currency transaction losses of $ 0.8 million during the year ended December 31, 2023, losses of $ 2.4 million during the year ended December 31, 2022 and gains of $ 2.6 million during the year ended December 31, 2021. To the extent that the Company’s international operations grow, the effect of fluctuations in currency rates will become greater, and the Company will continue to reassess its approach to managing this risk. In addition, currency fluctuations or a weakening U.S. dollar can increase the costs of the Company’s international expansion. To date, the Company has not entered into any foreign currency hedging contracts. Based on its current international structure, the Company does not plan on engaging in hedging activities in the near future. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant accounting estimates and management judgments reflected in the consolidated financial statements include items such as allowances for doubtful accounts; warranty obligations; stock-based compensation; depreciation and amortization lives; inventory valuation; valuation of investments; loss contingencies; valuation of intangible assets and contingent consideration liability; goodwill valuation; and accounting for income taxes. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. Actual results may differ from those estimates under different assumptions or conditions. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and investments. The majority of the Company’s cash is held by one financial institution in the United States in excess of federally insured limits. The Company maintained investments in money market funds that were not federally insured during the years ended December 31, 2023 and 2022, and held cash in foreign banks of approximately $ 9.4 million and $ 18.6 million at December 31, 2023 and 2022, respectively, that was not federally insured. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company’s convertible note hedge transactions, entered into in connection with the 2025 Notes, subject the Company to credit risk such that the counterparties may be unable to fulfill the terms of the transactions. The associated risk is mitigated by limiting the counterparties to major financial institutions. In the international markets in which the Company participates, the Company uses both a direct sales force and distributors to sell its products, while in the United States the Company generally utilizes a direct sales force. The Company performs ongoing credit evaluations of some of its direct customers and distributors, does not require collateral, and maintains allowances for potential credit losses on customer accounts when deemed necessary. |
Credit Losses | Credit Losses The Company makes estimates of the collectability of accounts receivable and provide an allowance for accounts receivable considered uncollectible based on current expected credit losses. In doing so, the Company analyzes historical bad debt trends, customer concentrations, customer credit worthiness, the age of the receivable, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for doubtful accounts. For the years ended December 31, 2023, 2022 and 2021, the Company recognized bad debt expenses of $ 0.8 million, $ 0.3 million and $ 0.1 million, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, short term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. |
Investment Securities | Investment Securities The Company classifies its investment securities as available-for-sale. The Company classifies these investment securities as short-term or long-term based on the nature of the investment, its maturity date and its availability for use in current operations. Those investments with original maturities greater than three months at the date of purchase and remaining maturities of less than 12 months are considered short-term investments. Those investments with remaining maturities greater than 12 months are also classified as short-term investments as management considers them to be available for current operations if needed. The Company’s investment securities are recorded at fair value based on the fair value hierarchy. Money market funds and treasury bonds are classified within Level 1 of the fair value hierarchy, and agency bonds, commercial paper and corporate notes are classified within Level 2 of the fair value hierarchy. Unrealized gains and losses, deemed temporary in nature, are reported as a separate component of accumulated other comprehensive income (loss). A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums (discounts) are amortized (accreted) over the life of the related security as an adjustment to yield using the straight-line interest method. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard cost method which approximates the first-in, first-out basis. Net realizable value is determined as the prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities compared to forecasted sales to record a provision for excess and obsolete inventory when appropriate. The Company estimates forecasted sales by considering product acceptance in the marketplace, customer demand, historical sales, product obsolescence and technological innovations. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected lower of cost or net realizable value, and inventory in excess of expected requirements. The estimate of excess quantities is judgmental and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on actual sales, the Company may increase the write-down for excess inventory for that component and record a charge to inventory impairment in the accompanying consolidated statements of operations and comprehensive loss. The Company’s estimation of the future demand for a particular component of the Company’s products may vary and may result in changes in estimates in any particular period. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are expensed as incurred and are included in cost of revenue. |
Revenue Recognition | Revenue Recognition The Company has revenue arrangements that generally consist of a single performance obligation, although, in some instances, revenue arrangements may consist of two performance obligations. The Company recognizes revenue at the point in time when it transfers control of promised goods to its customers. Revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods. Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of the Company’s goods to its customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods. For a majority of sales, where the Company’s sales representative delivers its product at the point of implantation at hospitals or medical facilities, the Company recognizes revenue upon completion of the procedure and authorization, which represents the point in time when control transfers to the customers. For the remaining sales, which are sent from the Company’s distribution centers directly to hospitals and medical facilities, as well as distributor sales, where product is ordered in advance of an implantation, the transfer of control occurs at the time of shipment of the product. These customers are obligated to pay within specified terms regardless of when or if they ever sell or use the products. The Company does not offer rights of return or price protection. To the extent the Company has a post-delivery obligation, such as programming devices that have been delivered as part of a direct-ship order, the Company defers revenue and the associated cost of goods sold associated with the post-delivery obligation only if the amounts are deemed material. For the periods presented, the amounts have not been material. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The expected costs associated with warranty obligations continue to be recognized as expense when the products are sold (see Note 7). The Company periodically provides incentive offers, in the form of rebates, to customers based on their aggregate levels of purchases. Product revenue is recorded net of such incentive offers. Practical Expedients and Exemptions - The Company recognizes revenue upon the transfer of control of the product and there are no material future performance obligations beyond such transfer. As a result, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not capitalize incremental costs when the amortization period of the asset is less than a year. |
Valuation of Business Acquisition | Valuation of Business Acquisition The Company allocates the amounts paid for acquisition to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets, which either arise from a contractual or legal right or are separable from goodwill. The Company bases the fair value of identifiable intangible assets acquired in a business combination on detailed valuations that use information and assumptions provided by management, which consider management’s best estimates of inputs and assumptions that a market participant would use. The Company allocates to goodwill any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired. Transaction costs associated with acquisitions are expensed as incurred through Selling, general and administrative expenses. Where an acquisition involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the contingent payments it expects to make as of the acquisition date. The Company re-measures this liability each reporting period and record changes in the fair value through Contingent consideration net expense (benefit) on our consolidated statements of operations. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount rates, periods, timing and amount of projected revenue or timing or likelihood of achieving regulatory, revenue or commercialization-based milestones. Payment of additional consideration is generally contingent on the acquired company reaching certain performance milestones after the acquisition date, including attaining specified revenue levels, achieving product development targets and/or obtaining regulatory approvals for products at the date of the acquisition. |
Amortization of Intangible Assets | Amortization of Intangible Assets The Company records definite-lived intangible assets at historical cost and amortize them over their estimated useful lives, using a straight-line method of amortization. The approximate useful lives for amortization of our intangible assets are as follows: developed technology, ten years; customer relationships, three years. The amortization of these intangible assets, which were acquired in a business acquisition, is include in the consolidated statements of operations as Amortization of intangibles. The Company reviews intangible assets subject to amortization quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset or an adverse action or assessment by a regulator. If we determine that the asset is impaired based on qualitative assessments of impairment indicators, the intangible asset is tested for recoverability. For purposes of the recoverability test, the Company groups amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset or asset group exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset or asset group, the Company will write down the carrying value to fair value in the period impairment is identified. |
Goodwill Valuation | Goodwill Valuation The Company allocates any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination to goodwill. The Company tests goodwill balances in the fourth quarter of each year, or more frequently if impairment indicators are present or changes in circumstances suggest an impairment may exist. Goodwill is assessed for impairment at the reporting unit level. |
Warrant Liability | Warrant Liability The Company accounts for its warrants as liabilities in accordance with ASC 815-40, Derivatives and Hedging . The warrants are presented as a Warrant liability in the consolidated balance sheet and are measured at fair value, with gains or losses recognized in the consolidated statement of operations. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment, other than leasehold improvements, is computed using the straight-line method over the assets’ estimated useful lives of three to five years . Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the life of the lease. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. There were no impairment charges, or changes in estimated useful lives, recorded through December 31, 2023 . |
Lease Accounting | Lease Accounting The Company has operating leases for office space, warehouse, research and development facilities, manufacturing facilities and equipment. Leases with terms of 12 months or less are not recorded on the balance sheet, as the related lease expenses are recognized on a straight-line basis over the lease term. The Company accounts for lease components (such as fixed payments) separately from non-lease components (such as common area expenses). Operating lease assets and operating lease liabilities are recognized based on the present value of minimum lease payments over the remaining lease term. The Company uses its incremental borrowing rate based on information available when determining the lease liabilities. Lease cost is recognized on a straight-line basis over the expected lease term. |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. In estimating future tax consequences, expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. To date, taxes paid have been predominantly due to income taxes in foreign and state jurisdictions in which we conduct business. The Company provides for tax contingencies whenever it is deemed probable that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relative tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest and penalties related to income taxes as a component of income tax expense. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) represents all changes in stockholders’ equity except those resulting from distributions to stockholders. The Company’s unrealized gains (losses) on short-term available-for-sale investment securities and foreign currency translation adjustments represent the components of other comprehensive income (loss) that are excluded from the reported net loss and are presented in the consolidated statements of operations and comprehensive loss. |
Research and Development | Research and Development Research and development expenses, including new product development, regulatory compliance, and clinical research, are charged to operations as incurred in the consolidated statements of operations and comprehensive loss. Such costs include personnel-related costs, including stock-based compensation, supplies, services, depreciation, allocated facilities and information services, clinical trial and related clinical manufacturing expenses, fees paid to investigative sites, and other indirect costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation arrangements with employees in accordance with Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation. ASC 718 requires the recognition of compensation expense, using a fair value-based method, for costs related to all share-based payments including stock options. The Company estimates forfeitures expected to occur to determine the amount of compensation cost recognized in each period. The Company’s determination of the fair value of stock options, other than performance-based awards, on the date of grant utilizes the Black-Scholes option-pricing model, and is impacted by its common stock price as well as changes in assumptions regarding a number of subjective variables. The expected term that the award will remain outstanding is based on the Company’s own historical data. The expected volatility over the term of the awards is based on the Company’s own common stock volatility and those of its peer group. The risk-free interest rate is based on the U.S. Treasury yield for zero-coupon U.S. Treasury notes with maturities. The expected dividend is zero, as the Company has never paid dividends and has no current plans to do so. The fair value of stock options is recognized over the period during which an optionee is required to provide services in exchange for the option award, known as the requisite service period (usually the vesting period), on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of the rights to purchase shares by employees under the Employee Stock Purchase Plan using the Black-Scholes option pricing formula. The Employee Stock Purchase Plan provides for consecutive six-month offering periods and the Company uses its own historical volatility data in the valuation. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustments as the underlying equity instruments vest. The fair value of options granted to consultants is expensed when vested. The non-employee stock-based compensation expense was not material for all periods presented. The Company accounts for stock-based compensation for the restricted stock units at their fair value, based on the closing market price of the Company’s common stock on the grant date. These costs are recognized on a straight-line basis over the requisite service period, which is generally the vesting term of three to four years . The Company grants performance stock units with vesting based on its stock price performance compared to a specified target composite index over a certain period, as well as performance stock units with vesting based on absolute stock price. The fair value of these grants is determined by using the Monte Carlo simulation model, which is based on a discounted cash flow approach, and requires inputs such as expected volatility of our stock price, expected volatility of the targeted composite index, correlation between the changes in our stock price and the target composite index, risk-free interest rate and expected dividends. The expected volatility of our stock and the target composite index is based on the historical data. Correlation is based on the historical relationship between our stock price and the target composite index. The risk-free interest rate is based upon the treasury yield consistent with the vesting term of the grant. The expected dividend yield is zero . Stock-based compensation for these performance stock units is recognized over the specified vesting period. The Company additionally issues performance stock units with vesting based upon the achievement of a specific financial target. The fair value for these performance-based awards is recognized over the period during which the goals are to be vested. Stock-based compensation expense recognized at fair value includes the impact of estimated probability that the goals would be achieved, which is assessed prior to the requisite service period for the specific goals, and is reassessed quarterly. Excess tax benefits or shortfalls from share-based award activity are reflected in the consolidated statements of operations as a component of the provision for income taxes. |
Net Income (Loss) per Share of Common Stock | Net Income (Loss) per Share of Common Stock Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares and potentially dilutive common stock equivalents outstanding for the period, if inclusion of these is dilutive. Potentially dilutive common stock equivalents include the common stock options, restricted stock units and performance stock units. Additionally, upon adoption of ASU 2020-06 on January 1, 2022, the Company uses the if-converted method and presumes share settlement for its 2025 Notes when calculating the dilutive effect of these notes. Prior to the adoption, the Company applied the treasury stock method when calculating the potential dilutive effect, if any, of the convertible senior notes which were intended to settle or have settled in cash the principal outstanding. Furthermore, in connection with the offerings of the convertible senior notes, the Company entered into convertible note hedges and warrants. However, the convertible note hedges are not included when calculating potentially dilutive shares since their effect is always anti-dilutive. Warrants were considered anti-dilutive to the extent that their strike price were above the Company's average share price during the period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). The ASU simplifies the accounting for convertible instruments by eliminating the cash conversion and beneficial conversion feature models used to separately account for embedded conversion features as a component of equity. Instead, entities will account for the convertible debt as a single unit of account, unless the conversion feature requires bifurcation and recognition as derivatives. Additionally, the guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement for instruments that may be settled in cash or shares. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method as of January 1, 2022. The adoption of ASU 2020-06 resulted in an increase of $ 34.3 million to long term debt to reflect the full principal amount of the convertible senior notes due 2025 issued in April 2020 (2025 Notes), net of debt issuance costs, a reduction of $ 48.3 million to additional paid-in capital to remove the equity component separately recorded for the conversion features and the debt issuance costs allocated to the conversion feature and a cumulative-effect adjustment of $ 14.0 million reducing the beginning balance of accumulated deficit as of January 1, 2022. Upon the adoption of ASU 2020-06, interest expense is reduced as the Company no longer recognizes any amortization of debt discounts as interest expense due to the removal of the unamortized debt discounts. The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2022 for the adoption of ASU 2020-06 were as follows (in thousands): Balance at Adjustments Due Balance at December 31, 2021 to ASU 2020-06 January 1, 2022 Long term debt $ 151,310 $ 34,345 $ 185,655 Additional paid-in capital $ 928,138 $ ( 48,340 ) $ 879,798 Accumulated deficit $ ( 624,193 ) $ 13,995 $ ( 610,198 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Cumulative Effect Of Changes | The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2022 for the adoption of ASU 2020-06 were as follows (in thousands): Balance at Adjustments Due Balance at December 31, 2021 to ASU 2020-06 January 1, 2022 Long term debt $ 151,310 $ 34,345 $ 185,655 Additional paid-in capital $ 928,138 $ ( 48,340 ) $ 879,798 Accumulated deficit $ ( 624,193 ) $ 13,995 $ ( 610,198 ) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue by Geography on Billing Address of Customer | The following table presents revenue by geography, based on the billing address of the customer (in thousands): Years Ended December 31, 2023 2022 2021 United States $ 366,558 $ 348,166 $ 326,216 International 58,616 58,199 60,689 Total revenue $ 425,174 $ 406,365 $ 386,905 |
Schedule of Revenue by Major Customers by Geographic Area | The United States is the only country that accounts for 10% or more of the revenue during the periods presented: Years Ended December 31, 2023 2022 2021 United States 86 % 86 % 84 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Weighted Average Lease Terms and Discounts Rates | The weighted average lease terms and discounts rates are as follows: December 31, 2023 2022 Operating Lease Term and Discount Rate Weighted-average remaining lease term 2.86 years 3.38 years Weighted-average discount rate 7.0 % 7.0 % |
Schedule of Maturity of Lease Liabilities | As of December 31, 2023, the maturity of lease liabilities are as follows (in thousands): Operating Leases 2024 $ 6,201 2025 2,849 2026 405 2027 417 2028 430 Thereafter 1,131 Total lease payments 11,433 Less: Interest ( 1,077 ) Present value of lease liabilities $ 10,356 |
Supplemental Lease Cost Information | Supplemental lease cost information are as follows (in thousands): Years Ended December 31, 2023 2022 Operating lease cost $ 5,370 $ 5,370 |
Schedule Of Operating Lease Assets and Liabilities | Supplemental balance sheet information are as follows (in thousands): December 31, 2023 2022 Operating Leases: Operating lease assets $ 8,944 $ 13,430 Other current liabilities $ 5,722 $ 5,195 Long term operating lease liabilities 4,634 10,296 Total operating lease liabilities $ 10,356 $ 15,491 |
Schedule of Supplemental Cash Flow Information Related to Lease | Supplemental cash flow information are as follows (in thousands): Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 6,019 $ 5,720 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Table] | |
Financial Instruments Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): Balance as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 82,886 $ — $ — $ 82,886 Agency bonds (ii) — 99,054 — 99,054 Commercial paper (ii) — 22,374 — 22,374 Corporate notes (ii) — 3,490 — 3,490 Treasury bonds (ii) 93,588 — — 93,588 Total assets $ 176,474 $ 124,918 $ — $ 301,392 Balance as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 92,318 $ — $ — $ 92,318 Agency bonds (ii) — 183,678 — 183,678 Commercial paper (ii) — 24,742 — 24,742 Treasury bonds (ii) 45,592 — — 45,592 Total assets $ 137,910 $ 208,420 $ — $ 346,330 (i) Included in cash and cash equivalents on the consolidated balance sheets. (ii) Included in short-term investments on the consolidated balance sheets. |
Summary Of Assumptions and Significant Unobservable Inputs | Significant unobservable inputs for the contingent consideration are as follows: Contingent Liability Fair Value at December 31, 2023 Valuation Technique Unobservable Input Range Regulatory Approval $ 4,964 Probability-Weighted Probability of Payment 80 % Milestone Average Discount Risk-Free Rate 5.2 % — 5.3 % Cash Flow Credit Spread 4.3 % Projected Year of Payment 2024 Product Development $ 1,677 Probability-Weighted Probability of Payment 50 % Milestone Average Discount Risk-Free Rate 4.9 % — 5.1 % Cash Flow Credit Spread 4.3 % Projected Year of Payment 2024 — 2025 Revenue Milestone $ 15,452 Monte Carlo Simulation Discount Rate 8.7 % — 9.3 % Revenue Volatility 17.0 % Projected Year of Payment 2025 — 2027 |
Warrant [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Table] | |
Summary Of Assumptions and Significant Unobservable Inputs | Assumptions for the warrant liability are as follows: December 31, November 30, 2023 2023 Expected term (in years) 6 6 Expected volatility 53 % 55 % Risk-free interest rate 3.50 % 3.89 % Dividend Yield 0 % 0 % |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Gross Unrealized Gains and Unrealized Losses of Investment Securities | The following is a summary of the gross unrealized gains and unrealized losses on the Company’s investment securities (in thousands): December 31, 2023 Amortized Gross Gross Aggregate Investment Securities Agency bonds $ 99,076 $ 68 $ ( 90 ) $ 99,054 Commercial paper 22,369 5 — 22,374 Corporate notes 3,491 — ( 1 ) 3,490 Treasury bonds 93,312 317 ( 41 ) 93,588 Total securities $ 218,248 $ 390 $ ( 132 ) $ 218,506 December 31, 2022 Amortized Gross Gross Aggregate Investment Securities Agency bonds $ 184,666 $ 2 $ ( 990 ) $ 183,678 Commercial paper 24,767 5 ( 30 ) 24,742 Treasury bonds 46,008 — ( 416 ) 45,592 Total securities $ 255,441 $ 7 $ ( 1,436 ) $ 254,012 |
Summary of Contractual Maturities of Investment Securities | The amortized costs and estimated fair values of the Company’s available-for-sale securities by contractual maturities as of December 31, 2023 were as follows (in thousands): Amortized Cost Fair Value Amounts maturing within one year $ 182,476 $ 182,492 Amounts after one year through five years 35,772 36,014 Total investment securities $ 218,248 $ 218,506 |
Components of Inventories | Inventories (in thousands) December 31, 2023 2022 Raw materials $ 64,974 $ 53,384 Work in process 2,149 1,195 Finished goods 51,553 45,059 Total inventories $ 118,676 $ 99,638 |
Schedule of Property and Equipment, Net and Depreciation and Amortization Expense | Property and Equipment, Net (in thousands) December 31, 2023 2022 Laboratory equipment $ 15,414 $ 11,482 Computer equipment and software 15,451 13,990 Internally developed software 8,831 4,636 Furniture and fixtures 4,745 4,421 Leasehold improvements 10,924 10,589 Construction in process 4,865 5,984 Total 60,230 51,102 Less: Accumulated depreciation and amortization ( 35,662 ) ( 28,831 ) Property and equipment, net $ 24,568 $ 22,271 |
Summary of Accrued Liabilities | Accrued Liabilities (in thousands) December 31, 2023 2022 Accrued payroll and related expenses $ 31,715 $ 35,341 Accrued professional fees 2,909 1,425 Accrued taxes 1,482 1,910 Accrued clinical and research expenses 752 282 Accrued interest 1,123 1,305 Accrued warranty 1,531 866 Accrued other 5,785 6,039 Total accrued liabilities $ 45,297 $ 47,168 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Activities Related to Warranty Obligations | Activities related to warranty obligations were as follows (in thousands): December 31, 2023 2022 Beginning Balance $ 866 $ 664 Provision for warranty 5,355 3,239 Utilization ( 4,690 ) ( 3,037 ) Ending Balance $ 1,531 $ 866 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
2021 Notes and Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Interest Expense Recognized Related to Convertible Notes | The following table sets forth the interest expense recognized related to the 2021 Notes (in thousands): Year Ended December 31, 2021 Contractual interest expense $ 1,266 Amortization of debt discount 3,182 Amortization of debt issuance costs 542 Total interest expense $ 4,990 |
2025 Notes and Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Interest Expense Recognized Related to Convertible Notes | The following table sets forth the interest expense recognized related to the 2025 Notes (in thousands): Years Ended December 31, 2023 2022 2021 Contractual interest expense $ 4,917 $ 5,218 $ 5,218 Amortization of debt discount — — 8,840 Amortization of debt issuance costs 1,180 1,212 699 Total interest expense $ 6,097 $ 6,430 $ 14,757 |
Debt, Liability Component [Member] | 2025 Notes and Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Net Carrying Amount of Convertible Debt | The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): December 31, 2023 2022 Principal $ 38,038 $ 189,750 Unamortized issuance cost ( 326 ) ( 2,883 ) Net carrying amount $ 37,712 $ 186,867 |
Debt Liability Component Braidwell Term Loans [Member] | |
Debt Instrument [Line Items] | |
Net Carrying Amount of Convertible Debt | The net carrying amount of the liability component of the Braidwell Term Loans was as follows (in thousands): December 31, 2023 Principal, accrued non-cash interest and fees $ 207,801 Unamortized issuance cost ( 34,042 ) Net carrying amount $ 173,759 |
Braidwell Term Loans [Member] | |
Debt Instrument [Line Items] | |
Interest Expense Recognized Related to Convertible Notes | The following table sets forth the interest expense recognized related to the Braidwell Term Loans (in thousands): Year Ended December 31, 2023 Contractual interest expense $ 1,708 Amortization of debt issuance costs 209 Total interest expense $ 1,917 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price | The purchase price was comprised of the amount presented as follows (in thousands): Cash consideration $ 38,022 Contingent consideration 22,093 $ 60,115 |
Schedule of Final Purchase Price Allocation | The final purchase price allocation was comprised of the following (in thousands): Current assets $ 1,725 Tangible fixed assets 418 Developed technology and other intangibles 27,600 Deferred tax liabilities ( 6,806 ) Other liabilities ( 986 ) Goodwill 38,164 $ 60,115 |
Summary of Developed Technology and Customer Relationships | The developed technology and customer relationships are allocated as follows (in thousands): Amount Assigned Amortization Period Developed technology $ 26,800 10 years Customer relationships 800 3 years |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents details of the Company’s intangible assets as of December 31, 2023 (in thousands): December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Useful Life (years) Intangible assets with finite lives: Developed technology $ 26,800 $ ( 223 ) $ 26,577 10 Customer relationships 800 ( 23 ) 777 3 Total $ 27,600 $ ( 246 ) $ 27,354 |
Summary of Future Amortization Expense of Intangible Assets | Future amortization expense of these intangibles assets as of December 31, 2023 is as follows (in thousands): Future Amortization Expense 2024 $ 2,947 2025 2,947 2026 2,924 2027 2,680 2028 2,680 Thereafter 13,176 Total $ 27,354 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance as of December 31, 2023 was as follows: Shares Outstanding stock options and awards 3,292,033 Reserved for grants of future stock options and awards 6,765,333 Reserved for employee stock purchase plan 1,189,229 Total common stock reserved for future issuance 11,246,595 |
Summary of Shares Available for Grant | A summary of shares available for grant under the Stock Plans is as follows: Shares Available for Grant Balance at December 31, 2020 4,600,181 Additional shares reserved 1,383,322 Allowance for PSU for overperformance ( 24,830 ) Shares forfeited for tax 58,787 Options, RSUs and PSUs granted ( 425,266 ) Options, RSUs and PSUs cancelled 140,101 Balance at December 31, 2021 5,732,295 Additional shares reserved 1,401,066 Allowance for PSU for overperformance 158,360 Shares forfeited for tax 137,638 Options, RSUs and PSUs granted ( 1,264,636 ) Options, RSUs and PSUs cancelled 230,197 Balance at December 31, 2022 6,394,920 Additional shares reserved 1,820,820 Allowance for PSU for overperformance ( 270,820 ) Shares forfeited for tax 177,036 Options, RSUs and PSUs granted ( 2,319,700 ) Options, RSUs and PSUs cancelled 504,042 Balance at December 31, 2023 6,306,298 |
Summary of Activity under Stock Plans | A summary of stock option activity under the Stock Plans is as follows: Options Outstanding Number of Options Weighted Average Exercise Price Weighted Average Remaining Aggregate Intrinsic Value (in years) (in thousands) Outstanding at December 31, 2020 813,150 $ 54.69 5.9 $ 96,286 Options exercised ( 90,582 ) $ 47.82 $ 6,948 Options cancelled ( 21,914 ) $ 43.52 Outstanding at December 31, 2021 700,654 $ 55.93 4.8 $ 18,287 Options exercised ( 26,091 ) $ 46.10 $ 386 Options cancelled ( 67,778 ) $ 77.14 Outstanding at December 31, 2022 606,785 $ 53.98 4.3 $ 2,379 Options exercised ( 83,058 ) $ 17.52 $ 1,482 Options cancelled ( 137,209 ) $ 60.54 Outstanding at December 31, 2023 386,518 $ 59.48 3.1 $ 87 Options exercisable as of December 31, 2023 386,518 $ 59.48 3.1 $ 87 Options vested, exercisable or expected to 386,518 $ 59.48 3.1 $ 87 |
Summary of Options Outstanding and Vested under Stock Plans by Exercise Price | The options outstanding and vested under the Stock Plans by exercise price, at December 31, 2023, were as follows: Options Outstanding Options Vested Weighted Average Remaining Number Contractual Term Weighted Average Number Weighted Average Exercise Price Outstanding (in years) Exercise Price Exercisable Exercise Price $ 3.60 — $ 38.79 41,651 1.82 $ 26.58 41,651 $ 26.58 $ 42.30 72,230 4.91 $ 42.30 72,230 $ 42.30 $ 43.79 — $ 60.60 40,409 1.97 $ 49.66 40,409 $ 49.66 $ 63.23 86,361 1.92 $ 63.23 86,361 $ 63.23 $ 63.39 — $ 76.81 100,467 3.89 $ 71.57 100,467 $ 71.57 $ 86.90 — $ 97.52 45,400 2.93 $ 91.90 45,400 $ 91.90 $ 3.60 — $ 97.52 386,518 3.10 $ 59.48 386,518 $ 59.48 |
Summary of Restricted Stock Units under the Stock Plan | A summary of RSU activity under the Stock Plans was as follows: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2020 852,977 $ 79.87 $ 147,650 Restricted stock granted 368,230 $ 146.64 Restricted stock released ( 346,602 ) $ 76.26 $ 22,902 Restricted stock cancelled ( 110,799 ) $ 98.76 Outstanding at December 31, 2021 763,806 $ 110.96 $ 61,922 Restricted stock granted 835,361 $ 63.70 Restricted stock released ( 327,297 ) $ 94.24 $ 1,351 Restricted stock cancelled ( 118,007 ) $ 94.99 Outstanding at December 31, 2022 1,153,863 $ 83.13 $ 45,693 Restricted stock granted 1,948,825 $ 28.12 Restricted stock released ( 687,119 ) $ 74.26 $ 3 Restricted stock cancelled ( 230,029 ) $ 58.53 Outstanding at December 31, 2023 2,185,540 $ 39.45 $ 47,033 Restricted stock expected to vest as of 2,010,850 $ 39.89 $ 43,273 |
Schedule of Employee Stock Purchase Plan Activity | A summary of ESPP activity was as follows: December 31, 2023 2022 2021 Additional shares reserved — — 235,590 Shares issued 247,826 130,459 65,197 Shares available for future issuance 1,189,229 1,437,055 1,567,514 Employee contributions for shares issued (in thousands) $ 5,086 $ 5,191 $ 6,849 |
Schedule of Fair Value of Employee Stock Options Using Black-Scholes Option Valuation and Monte Carlo Simulation Model | The following assumptions were used in estimating the fair value: Years Ended December 31, 2023 2022 2021 ESPP: Expected term (in years) 0.5 0.5 0.5 Expected volatility 56 % — 57 % 63 % — 72 % 36 % — 49 % Risk-free interest rate 5.3 % — 5.4 % 1.5 % — 4.5 % 0.1 % Dividend Yield 0 % 0 % 0 % |
Summary of Stock-Based Compensation Expense by Line Items in Consolidated Statements of Operations | A summary of stock-based compensation expense by line items in the consolidated statements of operations is as follows (in thousands): Years Ended December 31, 2023 2022 2021 Cost of revenue $ 2,490 $ 2,404 $ 1,637 Research and development 9,856 8,680 6,455 Sales, general and administrative 44,519 45,714 36,273 Total stock-based compensation expense $ 56,865 $ 56,798 $ 44,365 |
Summary of Stock-Based Compensation Expense | A summary of pre-tax stock-based compensation expense by category was as follows (in thousands): Years Ended December 31, 2023 2022 2021 Stock options $ 539 $ 2,056 $ 2,997 Restricted stock units 44,838 37,496 29,234 Performance stock units 9,429 15,207 10,017 Employee stock purchase plan 2,059 2,039 2,117 Total stock-based compensation expense $ 56,865 $ 56,798 $ 44,365 |
Summary of Stock-Based Compensation Expense Not Yet Recognized | As of December 31, 2023, total stock-based compensation expense not yet recognized, net of estimated forfeitures, are as follows: Unrecognized Weighted-Average Compensation Amortization Period (in thousands) (in years) Restricted stock units $ 63,384 2.1 Performance stock units 9,711 1.2 Employee stock purchase plan 755 0.4 |
Performance Stock Units [Member] | |
Summary of Performance Stock Units under the Stock Plan | A summary of PSU activity under the Stock Plans was as follows: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2020 199,037 $ 94.20 $ 34,453 PSU granted 57,036 $ 183.20 PSU cancelled ( 7,388 ) $ 136.77 Outstanding at December 31, 2021 248,685 $ 113.35 $ 20,161 PSU granted 392,742 $ 53.64 PSU granted from overachievement 36,533 $ 67.29 PSU released ( 147,644 ) $ 67.29 $ 3,294 PSU cancelled ( 44,412 ) $ 128.64 Outstanding at December 31, 2022 485,904 $ 74.22 $ 19,242 PSU granted 370,875 $ 37.64 PSU cancelled ( 136,804 ) $ 110.86 Outstanding at December 31, 2023 719,975 $ 48.41 $ 15,494 PSU expected to vest as of 572,485 $ 50.93 $ 12,320 |
Schedule of Fair Value of Employee Stock Options Using Black-Scholes Option Valuation and Monte Carlo Simulation Model | For the PSUs that vest based on the TSR and stock price, the Company estimates the grant-date fair value based on the Monte Carlo simulation model and records the related stock-based compensation over the vesting period, which is generally two to three years . The use of the Monte Carlo simulation model requires the input the following assumptions: Years Ended December 31, 2023 2022 2021 Index volatility 45 % — 47 % 54 % 51 % — 53 % Company volatility 58 % — 62 % 53 % — 54 % 49 % — 54 % Risk-free interest rate 4.1 % — 5.0 % 1.3 % — 1.7 % 0.1 % — 0.3 % Correlation with index 0.37 — 0.38 0.33 0.32 — 0.35 Dividend Yield 0 % 0 % 0 % |
Schedule of PSU Grant Activity | A summary of PSU grant activity under the Stock Plans was as follows: Years Ended December 31, 2023 2022 2021 Shares Weighted Average Fair Value Shares Weighted Average Fair Value Shares Weighted Average Fair Value Total shareholder return 185,424 $ 43.89 71,364 $ 105.12 57,036 $ 183.20 Revenue targets 185,451 $ 31.39 71,378 $ 70.76 — $ — Stock price performance — $ — 250,000 $ 34.05 — $ — Total PSUs granted 370,875 $ 37.64 392,742 $ 53.64 57,036 $ 183.20 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income/(Loss) before Income Taxes | The components of the Company’s income / (loss) before income taxes were as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Domestic $ ( 100,501 ) $ 2,185 $ ( 129,135 ) Foreign 2,642 2,079 ( 1,691 ) Total income (loss) before income taxes $ ( 97,859 ) $ 4,264 $ ( 130,826 ) |
Components of Expense/(Benefit) for Income Taxes | The components of the expense / (benefit) for income taxes are as follows (in thousands): Years Ended December 31, 2023 2022 2021 Current: Federal $ — $ — $ — State 424 363 244 Foreign 835 809 585 Total current income tax expense / (benefit) 1,259 1,172 829 Deferred: Federal ( 5,774 ) — — State ( 991 ) — — Foreign ( 140 ) 91 ( 295 ) Total deferred income tax expense / (benefit) ( 6,905 ) 91 ( 295 ) Total income tax expense / (benefit) $ ( 5,646 ) $ 1,263 $ 534 |
Income Tax Expense by Applying Statutory Federal Income Tax Rate | Income tax expense differs from the amount computed by applying the statutory federal income tax rate as follows: Years Ended December 31, 2023 2022 2021 Tax at statutory federal rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit ( 0.4 )% 6.7 % ( 0.2 )% Foreign rate differential ( 0.7 )% 14.8 % ( 0.4 )% Tax credits 1.2 % ( 0.9 )% 3.0 % Stock-based compensation ( 8.3 )% 110.7 % ( 0.2 )% Change in valuation allowance 3.2 % ( 140.1 )% ( 23.3 )% Release of valuation allowance ( 6.8 )% 0.0 % 0.0 % Warrant remeasurement ( 1.7 )% 0.0 % 0.0 % Other permanent differences ( 1.2 )% 22.5 % ( 0.4 )% Other ( 0.6 )% ( 5.1 )% 0.1 % Total 5.7 % 29.6 % ( 0.4 )% |
Tax Effects of Temporary Differences and Carryforwards that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities are as follows: December 31, 2023 2022 (in thousands) Net operating loss carryforwards $ 142,332 $ 138,583 Tax credits 28,778 25,675 Depreciation 1,011 652 Stock-based compensation 5,604 7,478 Accruals and reserves 11,703 12,326 Right of use asset 1,945 3,165 R&D capitalization 21,275 10,228 Bond hedge 3,827 6,593 Other ( 392 ) 214 Gross deferred tax assets 216,083 204,914 Valuation allowance ( 206,327 ) ( 200,977 ) Deferred tax assets 9,756 3,937 Lease liabilities ( 1,642 ) ( 2,695 ) Intangibles ( 6,734 ) — Deferred tax liabilities ( 8,376 ) ( 2,695 ) Net deferred tax assets $ 1,380 $ 1,242 |
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to UTBs (in thousands): Balance at December 31, 2020 $ 8,220 Increases related to current year tax provisions 1,412 Increases related to prior year tax provisions 860 Decreases related to prior year tax provisions ( 62 ) Balance at December 31, 2021 10,430 Increases related to current year tax provisions 956 Decreases related to prior year tax provisions ( 663 ) Balance at December 31, 2022 10,723 Increases related to current year tax provisions 1,011 Increases related to prior year tax provisions 229 Decreases related to prior year tax provisions ( 91 ) Balance at December 31, 2023 $ 11,872 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | The following table presents the net income (loss) used in computing basic and diluted net income (loss) per common share (in thousands): Years Ended December 31, 2023 2022 2021 Net income (loss) used in basic and diluted net income (loss) per common share $ ( 92,213 ) $ 3,001 $ ( 131,360 ) |
Schedule of Weighted Average Shares used in Computing Basic and Diluted Net Income (Loss) Per Common Share | The following table presents the reconciliation of weighted average shares used in computing basic and diluted net income (loss) per common share: Years Ended December 31, 2023 2022 2021 Weighted average shares used to compute basic 35,981,431 35,317,644 34,823,258 Plus effect of dilutive securities: Stock-based awards from employee equity plans — 207,611 — Weighted average shares used to compute 35,981,431 35,525,255 34,823,258 |
Schedule of Net Income (Loss) Per Common Share - Basic and Diluted | The following table presents the net income (loss) per common share - basic and diluted: Years Ended December 31, 2023 2022 2021 Net income (loss) per common share: Basic $ ( 2.56 ) $ 0.08 $ ( 3.77 ) Diluted $ ( 2.56 ) $ 0.08 $ ( 3.77 ) |
Computation of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares | The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding, as the effect would be anti-dilutive: December 31, 2023 2022 2021 Stock-based awards from employee equity plans 3,292,033 1,394,189 1,713,145 Convertible senior notes 362,267 1,807,141 1,807,141 Warrants related to the issuance of convertible senior notes 1,807,141 1,807,141 1,807,141 Warrants related term debt 2,587,742 — — Total 8,049,183 5,008,471 5,327,427 |
Formation and Business of the_2
Formation and Business of the Company - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income (loss) | $ (92,213) | $ 3,001 | $ (131,360) |
Cash provided by operations | (58,829) | 24,675 | $ (41,881) |
Accumulated deficit | $ 699,410 | $ 607,197 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2014 | Dec. 31, 2023 USD ($) Business Subsidiary | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2022 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of operational wholly owned subsidiaries | Subsidiary | 6 | ||||
Number of business activities | Business | 1 | ||||
Net unrealized foreign currency transaction gains (losses) | $ 400,000 | $ 3,100,000 | $ (3,300,000) | ||
Realized foreign currency transaction gains (losses) | (800,000) | (2,400,000) | 2,600,000 | ||
Cash held in foreign banks | $ 9,400,000 | 18,600,000 | |||
Unsatisfied performance obligations description | The Company recognizes revenue upon the transfer of control of the product and there are no material future performance obligations beyond such transfer. As a result, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not capitalize incremental costs when the amortization period of the asset is less than a year. | ||||
Bad debt expense | $ 800,000 | 300,000 | 100,000 | ||
Impairment charges | $ 0 | ||||
Employee stock purchase plan offering period | 6 months | 6 months | |||
Long-term debt | $ 211,471,000 | 186,867,000 | |||
Additional paid-in capital | 992,762,000 | 934,132,000 | |||
Accumulated deficit | $ (699,410,000) | $ (607,197,000) | |||
ASU 2020-06 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Change in accounting principle, accounting standards update, adoption [true false] | true | ||||
Accounting standards adopted date | Jan. 01, 2022 | ||||
Long-term debt | $ 185,655,000 | ||||
Additional paid-in capital | 879,798,000 | ||||
Accumulated deficit | (610,198,000) | ||||
Amortization of debt discounts as interest expense | $ 0 | ||||
Performance Based RSUs [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Dividend Yield | 0% | ||||
Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property and equipment | 3 years | ||||
Minimum [Member] | RSU's [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting term | 3 years | ||||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property and equipment | 5 years | ||||
Lease term | 12 months | ||||
Maximum [Member] | RSU's [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting term | 4 years | ||||
2.75% Convertible Senior Notes due 2025 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Debt instrument due year | 2025 | ||||
2025 Notes [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Amortization of debt discounts as interest expense | $ 8,840,000 | ||||
Revision of Prior Period, Adjustment [Member] | ASU 2020-06 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Long-term debt | 34,345,000 | ||||
Additional paid-in capital | (48,340,000) | ||||
Accumulated deficit | 13,995,000 | ||||
Revision of Prior Period, Adjustment [Member] | 2025 Notes [Member] | ASU 2020-06 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Long-term debt | 34,300,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Revision of Prior Period, Adjustment [Member] | ASU 2020-06 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Accumulated deficit | $ 14,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail 1) | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Unsatisfied performance obligations period | 1 year |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cumulative Effect Of Changes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Summary Of Significant Accounting Policies [Line Items] | ||||
Long-term debt | $ 211,471 | $ 186,867 | ||
Additional paid-in capital | 992,762 | 934,132 | ||
Accumulated deficit | $ (699,410) | $ (607,197) | ||
Scenario Previously Reported [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Long-term debt | $ 151,310 | |||
Additional paid-in capital | 928,138 | |||
Accumulated deficit | $ (624,193) | |||
Accounting Standards Update 2020-06 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Long-term debt | $ 185,655 | |||
Additional paid-in capital | 879,798 | |||
Accumulated deficit | (610,198) | |||
Accounting Standards Update 2020-06 [Member] | Restatement Adjustment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Long-term debt | 34,345 | |||
Additional paid-in capital | (48,340) | |||
Accumulated deficit | $ 13,995 |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Geography on Billing Address of Customer (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 425,174 | $ 406,365 | $ 386,905 |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 366,558 | 348,166 | 326,216 |
International [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 58,616 | $ 58,199 | $ 60,689 |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Major Customers by Geographic Area (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue [Member] | Geographic Concentration Risk [Member] | United States [Member] | |||
Concentration Risk [Line Items] | |||
Revenue | 86% | 86% | 84% |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Customer | Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ | $ 425,174 | $ 406,365 | $ 386,905 |
Painful Diabetic Neuropathy [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ | $ 77,900 | $ 48,000 | $ 5,700 |
Percentage of permanent implant procedures | 20% | 12% | |
Major Customers [Member] | Customer Concentration Risk [Member] | Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk, percentage | 10% | 10% | 10% |
Number of customers accounted 10% or more concentration risk | Customer | 0 | 0 | 0 |
Major Customers [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration risk, percentage | 10% | 10% | |
Number of customers accounted 10% or more concentration risk | Customer | 0 | 0 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Lease Description [Line Items] | |
Existence of option to extend the lease | true |
Option to extend the lease term, description | As of December 31, 2023, the Company has leases with remaining terms of 1 year to 7 years, some of which may include options to extend the lease term for up to 5 years. |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, remaining term | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, remaining term | 7 years |
Options to extend the lease term | 5 years |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Terms and Discounts Rates (Detail) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 2 years 10 months 9 days | 3 years 4 months 17 days |
Weighted-average discount rate | 7% | 7% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 6,201 | |
2025 | 2,849 | |
2026 | 405 | |
2027 | 417 | |
2028 | 430 | |
Thereafter | 1,131 | |
Total lease payments | 11,433 | |
Less: Interest | (1,077) | |
Present value of lease liabilities | $ 10,356 | $ 15,491 |
Leases - Supplemental Lease Cos
Leases - Supplemental Lease Cost Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 5,370 | $ 5,370 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases: | ||
Operating lease assets | $ 8,944 | $ 13,430 |
Other current liabilities | $ 5,722 | $ 5,195 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Long term operating lease liabilities | $ 4,634 | $ 10,296 |
Total operating lease liabilities | $ 10,356 | $ 15,491 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Lease (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flow from operating leases | $ 6,019 | $ 5,720 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
2.75% Convertible Senior Notes due 2025 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate | 2.75% | |
Debt instrument due year | 2025 | |
Fair value of notes | $ 35,600 | $ 174,200 |
Principal amount | 38,000 | $ 189,800 |
Level 3 [Member] | Warrant [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of warrants | 28,700 | |
Level 3 [Member] | Revenue Milestone [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of contingent consideration | 15,452 | |
Level 3 [Member] | Regulatory Approval [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of contingent consideration | 5,000 | |
Level 3 [Member] | Product Development [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of contingent consideration | $ 1,700 | |
Fair Value Measurements Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net asset value of market funds | $ 1 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | $ 301,392 | $ 346,330 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 176,474 | 137,910 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 124,918 | 208,420 | |
Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [1] | 82,886 | 92,318 |
Money Market Funds [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [1] | 82,886 | 92,318 |
Agency Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [2] | 99,054 | 183,678 |
Agency Bonds [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [2] | 99,054 | 183,678 |
Commercial Paper [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [2] | 22,374 | 24,742 |
Commercial Paper [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [2] | 22,374 | 24,742 |
Corporate Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [2] | 3,490 | |
Corporate Notes [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [2] | 3,490 | |
Treasury Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [2] | 93,588 | 45,592 |
Treasury Bonds [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | [2] | $ 93,588 | $ 45,592 |
[1] Included in cash and cash equivalents on the consolidated balance sheets. Included in short-term investments on the consolidated balance sheets. |
Fair Value Measurements - Summa
Fair Value Measurements - Summary Of Assumptions For the Warrant Liability (Details) | Dec. 31, 2023 | Nov. 30, 2023 |
Expected term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrant liability expected term (in years) | 6 years | 6 years |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrant liability Measurement input | 53 | 55 |
Risk-free interest rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrant liability Measurement input | 3.5 | 3.89 |
Dividend Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrant liability Measurement input | 0 | 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Significant Unobservable Inputs for Contingent Consideration (Details) - Level 3 [Member] $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value of contingent consideration | $ 15,452 |
Regulatory Approval Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value of contingent consideration | 4,964 |
Product Development Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value of contingent consideration | $ 1,677 |
Probability of Payment [Member] | Regulatory Approval Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 80 |
Probability of Payment [Member] | Product Development Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 50 |
Credit Spread [Member] | Regulatory Approval Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 4.3 |
Credit Spread [Member] | Product Development Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 4.3 |
Projected Year of Payment [Member] | Regulatory Approval Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration year | 2024 |
Measurement Input Revenue Volatility Member | Revenue Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 17 |
Maximum [Member] | Risk-free interest rate [Member] | Regulatory Approval Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 5.3 |
Maximum [Member] | Risk-free interest rate [Member] | Product Development Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 5.1 |
Maximum [Member] | Projected Year of Payment [Member] | Revenue Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration year | 2027 |
Maximum [Member] | Projected Year of Payment [Member] | Product Development Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration year | 2025 |
Maximum [Member] | Discount Rate [Member] | Revenue Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 9.3 |
Minimum [Member] | Risk-free interest rate [Member] | Regulatory Approval Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 5.2 |
Minimum [Member] | Risk-free interest rate [Member] | Product Development Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 4.9 |
Minimum [Member] | Projected Year of Payment [Member] | Revenue Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration year | 2025 |
Minimum [Member] | Projected Year of Payment [Member] | Product Development Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration year | 2024 |
Minimum [Member] | Discount Rate [Member] | Revenue Milestone [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value contingent consideration inputs | 8.7 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Gross Unrealized Gains and Unrealized Losses of Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 218,248 | $ 255,441 |
Gross Unrealized Holding Gains | 390 | 7 |
Gross Unrealized Holding Losses | (132) | (1,436) |
Aggregate Fair Value | 218,506 | 254,012 |
Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 99,076 | 184,666 |
Gross Unrealized Holding Gains | 68 | 2 |
Gross Unrealized Holding Losses | (90) | (990) |
Aggregate Fair Value | 99,054 | 183,678 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 22,369 | 24,767 |
Gross Unrealized Holding Gains | 5 | 5 |
Gross Unrealized Holding Losses | (30) | |
Aggregate Fair Value | 22,374 | 24,742 |
Corporate Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,491 | |
Gross Unrealized Holding Losses | (1) | |
Aggregate Fair Value | 3,490 | |
Treasury Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 93,312 | 46,008 |
Gross Unrealized Holding Gains | 317 | |
Gross Unrealized Holding Losses | (41) | (416) |
Aggregate Fair Value | $ 93,588 | $ 45,592 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Contractual Maturities of Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Amounts maturing within one year | $ 182,476 | |
Amortized Cost, Amounts maturing after one year through five years | 35,772 | |
Amortized Cost | 218,248 | $ 255,441 |
Fair Value, Amounts maturing within one year | 182,492 | |
Fair Value, Amounts after one year through five years | 36,014 | |
Fair Value, Total investment securities | $ 218,506 | $ 254,012 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 64,974 | $ 53,384 |
Work in porcess | 2,149 | 1,195 |
Finished goods | 51,553 | 45,059 |
Total inventories | $ 118,676 | $ 99,638 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Write down of inventory | $ 2,100 | $ 4,200 | $ 4,300 |
Property Plant And Equipment [Abstract] | |||
Depreciation | 6,800 | 6,200 | $ 4,900 |
Restricted Cash and Cash Equivalents [Abstract] | |||
Restricted cash | 606 | 606 | |
Certificates of Deposit [Member] | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Restricted cash | $ 600 | $ 600 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 60,230 | $ 51,102 |
Less: Accumulated depreciation and amortization | (35,662) | (28,831) |
Property and equipment, net | 24,568 | 22,271 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,414 | 11,482 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,451 | 13,990 |
Internally Developed Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,831 | 4,636 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,745 | 4,421 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,924 | 10,589 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,865 | $ 5,984 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | |||
Accrued payroll and related expenses | $ 31,715 | $ 35,341 | |
Accrued professional fees | 2,909 | 1,425 | |
Accrued taxes | 1,482 | 1,910 | |
Accrued clinical and research expenses | 752 | 282 | |
Accrued interest | 1,123 | 1,305 | |
Accrued warranty | 1,531 | 866 | $ 664 |
Accrued other | 5,785 | 6,039 | |
Total accrued liabilities | $ 45,297 | $ 47,168 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||||||||
Aug. 01, 2022 USD ($) | Nov. 01, 2021 USD ($) | Oct. 31, 2021 | Aug. 31, 2020 USD ($) ft² | Feb. 28, 2017 USD ($) | Dec. 31, 2016 USD ($) ft² | Mar. 31, 2015 USD ($) ft² | Dec. 31, 2023 USD ($) ConvertibleNote | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Apr. 27, 2018 Patent | Dec. 09, 2016 Patent | |
Other Commitments [Line Items] | |||||||||||||
Standard product warranty, description | limited one- to five-year warranty | ||||||||||||
Retainer fees | $ 54,418,000 | $ 53,065,000 | $ 47,665,000 | ||||||||||
Contingent consideration payment secured by convertible notes | $ 1,900,000 | ||||||||||||
Number of secured convertible notes | ConvertibleNote | 2 | ||||||||||||
Contingent consideration milestone obligation for additional funding secured by convertible notes | $ 1,000,000 | ||||||||||||
Amount of shares of senior security to be purchased | 2,000,000 | ||||||||||||
Contingent liabilities | 0 | 0 | |||||||||||
Other Assets [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Value of secured convertible notes | 1,900,000 | ||||||||||||
Boston Scientific Corporation [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Contingent liabilities | $ 20,000,000 | ||||||||||||
Patent infringement lawsuit allegation against number of patents | Patent | 9 | 10 | |||||||||||
Amount awarded by jury | $ 20,000,000 | ||||||||||||
Payment received pursuant to legal settlement | $ 85,000,000 | ||||||||||||
Indemnification Agreement [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Contingent liabilities | 0 | ||||||||||||
Service Agreement [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
2024 | 2,900,000 | ||||||||||||
Licensing Agreements [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Annual royalty payment | $ 0 | $ 0 | |||||||||||
Licensing Agreements [Member] | Maximum [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Annual royalty payment | 10,000 | ||||||||||||
Licensing Agreements [Member] | Mayo And VGL [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
License agreement, terms | The agreement will terminate upon the last to expire patent application, unless terminated earlier. The agreement can be terminated any time after three years from March 2006 by Mayo or VGL. | ||||||||||||
Licensing Agreements [Member] | Mayo Foundation [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Retainer fees | $ 40,000 | ||||||||||||
Licensing Agreements [Member] | Mayo Foundation [Member] | Minimum [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Annual royalty payment | 200,000 | ||||||||||||
Supply Agreements [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Purchase commitment, amount due 2023 | 19,900,000 | ||||||||||||
Purchase commitment, amount due 2024 | 19,800,000 | 20,100,000 | |||||||||||
Purchase commitment, amount due 2025 | 19,800,000 | $ 20,100,000 | |||||||||||
Purchase commitment, amount due 2026 | $ 19,800,000 | ||||||||||||
Costa Rica [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, commencement period | 2020-08 | ||||||||||||
Area of office space | ft² | 35,411 | ||||||||||||
Lease agreement, effective month and year | 2021-04 | ||||||||||||
Lease agreement, expiration period | 2031-06 | ||||||||||||
Lease agreement, lease expense | $ 3,900,000 | ||||||||||||
Redwood Office Agreement [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, commencement period | 2015-03 | ||||||||||||
Area of office space | ft² | 50,740 | ||||||||||||
Lease agreement, effective month and year | 2015-06 | ||||||||||||
Lease agreement, expiration period | 2022-05 | ||||||||||||
Lease expense, payment due | $ 2,000,000 | ||||||||||||
Annual lease expense payable in final year of lease term | $ 2,400,000 | ||||||||||||
Redwood Office Agreement Additional Expansion Premises [Member] | Amendment 1 [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Area of office space | ft² | 49,980 | ||||||||||||
Lease expense, payment due | $ 1,200,000 | ||||||||||||
Annual lease expense payable in final year of lease term | $ 2,900,000 | ||||||||||||
Commencement date description | The lease for the Expansion Premises commenced on June 1, 2018 | ||||||||||||
Lease commencement date | Jun. 01, 2018 | ||||||||||||
Lease agreement, expiration date | May 31, 2025 | ||||||||||||
Non-cancellable Facility Lease [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, effective date | Mar. 01, 2017 | ||||||||||||
Lease agreement, expiration date | Feb. 28, 2022 | ||||||||||||
Lease agreement, lease expense | $ 400,000 | ||||||||||||
Non-cancellable Facility Lease [Member] | Amendment 1 [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, expiration date | May 31, 2025 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Activities Related to Warranty Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $ 866 | $ 664 |
Provision for warranty | 5,355 | 3,239 |
Utilization | (4,690) | (3,037) |
Ending balance | $ 1,531 | $ 866 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
Jun. 01, 2021 USD ($) shares | Nov. 30, 2023 USD ($) $ / shares shares | Apr. 30, 2020 USD ($) d $ / shares shares | Jun. 30, 2016 USD ($) | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 $ / shares | |
Debt Instrument [Line Items] | |||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||||
Repayment of convertible notes | $ (146,402,000) | $ (172,500,000) | |||||
2021 Notes and Convertible Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of convertible senior notes | $ 150,000,000 | ||||||
Debt instrument interest rate | 1.75% | ||||||
Debt instrument due year | 2021-06 | ||||||
Additional aggregate principal amount of convertible senior notes | $ 22,500,000 | ||||||
Net proceeds from the debt offering after deducting transaction costs | 166,200,000 | ||||||
Debt conversion, converted instrument amount | $ 32,900,000 | ||||||
Debt instrument, effective interest rate | 6.29% | ||||||
Debt issuance costs attributable to the liability and equity component, total amount | $ 6,200,000 | ||||||
Debt issuance costs attributable to the liability component | $ 5,000,000 | ||||||
2021 Notes and Convertible Notes [Member] | Debt, Liability Component [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Convertible notes, shares issued | shares | 682,912 | ||||||
Principal amount | $ 172,500,000 | ||||||
Share received on option exercise | shares | 682,916 | ||||||
Holders of warrants associated | $ 0 | ||||||
2025 Notes and Convertible Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of convertible senior notes | $ 165,000,000 | ||||||
Debt instrument interest rate | 2.75% | ||||||
Additional aggregate principal amount of convertible senior notes | $ 24,800,000 | ||||||
Repurchase of outstanding amount | $ 151,700,000 | ||||||
Debt instrument frequency of payment | semi-annually in arrears on April 1 and October 1 of each year, commencing on October 1, 2020 | ||||||
Net proceeds from the debt offering after deducting transaction costs | 183,600,000 | ||||||
Convertible notes principal amount | $ 1,000 | ||||||
Convertible notes, shares issued | shares | 9.5238 | ||||||
Convertible notes, type of equity security issued | common stock | ||||||
Convertible notes, conversion price | $ / shares | $ 105 | ||||||
Debt instrument convertible, percentage of conversion price | 130% | ||||||
Percentage of repurchase price, which is equal to principal amount of convertible notes | 100% | ||||||
Number of shares purchased under convertible note hedge transactions | shares | 1,800,000 | ||||||
Purchase price of the shares issued under convertible note hedge transactions | $ / shares | $ 105 | ||||||
Total cost of the convertible note hedge transactions | $ 52,400,000 | ||||||
Proceeds from issuance of warrants | 34,900,000 | ||||||
Net cost of reduction to additional paid-in capital | $ 17,500,000 | ||||||
Debt instrument, effective interest rate | 10.20% | 3.50% | 10.20% | 3.50% | |||
Repayment of convertible notes | $ (146,400,000) | ||||||
Debt issuance costs | 1,400,000 | ||||||
Debt instrument due year | 2025 | ||||||
Converted Value in Excess of Principal | $ 0 | ||||||
2025 Notes and Convertible Notes [Member] | Warrant [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of shares issued and purchased for warrants | shares | 1,800,000 | ||||||
Purchase price of the shares issued and excised | $ / shares | $ 147 | ||||||
2025 Notes and Convertible Notes [Member] | 130% for Applicable Conversion Price [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument convertible trading days | d | 20 | ||||||
Debt instrument convertible consecutive trading days | d | 30 | ||||||
2025 Notes and Convertible Notes [Member] | 98% Applicable Conversion Price [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument convertible trading days | d | 5 | ||||||
Debt instrument convertible consecutive trading days | d | 10 | ||||||
2025 Notes and Convertible Notes [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of closing sale price of common stock | 98% | ||||||
2025 Notes and Convertible Notes [Member] | Maximum [Member] | Warrant [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Overall conversion price | $ / shares | $ 147 | ||||||
2025 Notes and Convertible Notes [Member] | Minimum [Member] | Warrant [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Overall conversion price | $ / shares | $ 105 | ||||||
Credit Agreement with Braidwell LP [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of shares issued and purchased for warrants | shares | 2,587,742 | ||||||
Common stock, par value | $ / shares | $ 0.0001 | ||||||
Percentage of common stock issued and outstanding | 4.99% | ||||||
Decrease in warrant holder's election | 61 days | ||||||
Purchase price of the shares issued and excised | $ / shares | $ 23.1862 | ||||||
Credit Agreement with Braidwell LP [Member] | Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Net proceeds from the debt offering after deducting transaction costs | $ 194,200,000 | ||||||
Principal amount | $ 200,000,000 | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 5.25% | ||||||
Exit fee, Percentage | 3% | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans [Member] | Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 3.50% | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans, First anniversary of the Closing Date and on or prior to the third anniversary of the Closing Date [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest payable percentage | 2.50% | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans, On or prior to the first anniversary of the Closing Date [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest payable percentage | 5.25% | ||||||
Prepayment principal amount, Percentage | 4% | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans, Third anniversary of the Closing Date [Member] | Paid in-kind [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest payable percentage | 1.50% | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans, After the first anniversary of the Closing Date and on or prior to the second anniversary of the Closing Date [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment principal amount, Percentage | 3% | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans, After the second anniversary of the Closing Date and on or prior to the third anniversary of the Closing Date [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment principal amount, Percentage | 2% | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans, After the third anniversary of the Closing Date and on or prior to the fourth anniversary of the Closing Date [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment principal amount, Percentage | 1% | ||||||
Credit Agreement with Braidwell LP [Member] | Braidwell Term Loans, After the fourth anniversary of the Closing Date [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment principal amount, Percentage | 0% | ||||||
Credit Agreement with Braidwell LP [Member] | Minimum [Member] | Braidwell Term Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt condition amount | $ 75,000,000 | ||||||
Credit Agreement with Braidwell LP [Member] | Minimum [Member] | Braidwell Term Loans, Last Day of the Closing Date [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt condition amount | $ 300,000,000 |
Long-term Debt - Net Carrying A
Long-term Debt - Net Carrying Amount of Liability Component of Convertible Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
2025 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal, accrued non-cash interest and fees | $ 38,038 | $ 189,750 |
Unamortized issuance cost | (326) | (2,883) |
Net carrying amount | 37,712 | $ 186,867 |
Debt Liability Component Braidwell Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Principal, accrued non-cash interest and fees | 207,801 | |
Unamortized issuance cost | (34,042) | |
Net carrying amount | $ 173,759 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense Recognized Related to Convertible Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
2021 Notes and Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 1,266 | ||
Amortization of debt discount | 3,182 | ||
Amortization of debt issuance costs | 542 | ||
Total interest expense | 4,990 | ||
2025 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 4,917 | $ 5,218 | 5,218 |
Amortization of debt discount | 8,840 | ||
Amortization of debt issuance costs | 1,180 | 1,212 | 699 |
Total interest expense | 6,097 | $ 6,430 | $ 14,757 |
Braidwell Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 1,708 | ||
Amortization of debt issuance costs | 209 | ||
Total interest expense | $ 1,917 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Cash consideration | $ 38,022 | |||
Operating Expenses | $ 389,368 | $ 270,203 | $ 376,976 | |
Vyrsa Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 38,000 | |||
Operating Expenses | 1,900 | |||
Vyrsa Acquisition [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Additional cash or common stock paid | $ 35,000 |
Acquisition - Schedule of Purch
Acquisition - Schedule of Purchase Price (Detail) - Vyrsa Acquisition [Member] $ in Thousands | Nov. 30, 2023 USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 38,022 |
Contingent consideration | 22,093 |
Total purchase price | $ 60,115 |
Acquisition - Schedule of Final
Acquisition - Schedule of Final Purchase Price Allocation (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Business Acquisition [Line Items] | |
Goodwill | $ 38,164 |
Vyrsa Acquisition [Member] | |
Business Acquisition [Line Items] | |
Current assets | 1,725 |
Tangible fixed assets | 418 |
Developed technology and other intangibles | 27,600 |
Deferred tax liabilities | (6,806) |
Other liabilities | (986) |
Goodwill | 38,164 |
Total purchase price | $ 60,115 |
Acquisition - Summary of Develo
Acquisition - Summary of Developed Technology and Customer Relationships (Detail) - Vyrsa Acquisition [Member] - USD ($) $ in Thousands | Nov. 30, 2023 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||
Amount Assigned | $ 27,600 | |
Developed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Amount Assigned | $ 26,800 | |
Amortization period | 10 years | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Amount Assigned | $ 800 | |
Amortization period | 3 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | $ 38,200 |
Accumulated impairment loss on goodwill | 0 |
Amortization of intangibles | $ 246 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 27,600 |
Accumulated Amortization | (246) |
Net Carrying Amount | 27,354 |
Developed Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 26,800 |
Accumulated Amortization | (223) |
Net Carrying Amount | $ 26,577 |
Remaining Useful Life (years) | 10 years |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 800 |
Accumulated Amortization | (23) |
Net Carrying Amount | $ 777 |
Remaining Useful Life (years) | 3 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Future Amortization Expense of Intangible Assets (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 | $ 2,947 |
2025 | 2,947 |
2026 | 2,924 |
2027 | 2,680 |
2028 | 2,680 |
Thereafter | 13,176 |
Net Carrying Amount | $ 27,354 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2023 shares |
Share-Based Payment Arrangement [Abstract] | |
Outstanding stock options and awards | 3,292,033 |
Reserved for grants of future stock options and awards | 6,765,333 |
Reserved for employee stock purchase plan | 1,189,229 |
Total common stock reserved for future issuance | 11,246,595 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2019 | Oct. 31, 2014 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for future issuance | 11,246,595 | |||||||
Fair value of options vested | $ 0.6 | $ 2.1 | $ 3.1 | |||||
Employee stock purchase plan offering period | 6 months | 6 months | ||||||
Employee Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Option purchase price, percentage of fair value | 85% | |||||||
Number of shares available for sale | 196,666 | |||||||
Maximum employee subscription rate | 15% | |||||||
Performance Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of estimated probability of goal achieved | 95% | |||||||
Performance Stock Units [Member] | CEO [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Targeted composite index period | 3 years | |||||||
Performance Stock Units [Member] | Member of Management Team [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Targeted composite index period | 2 years | 2 years | 2 years | |||||
Maximum [Member] | Performance Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognition period of stock based compensation expense | 3 years | |||||||
Percentage of estimated probability of goal achieved | 100% | |||||||
Maximum [Member] | Performance Stock Units [Member] | CEO [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Targeted number of shares granted ratio | 350% | |||||||
Maximum [Member] | Performance Stock Units [Member] | Member of Management Team [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Targeted number of shares granted ratio | 200% | 200% | 150% | |||||
Maximum [Member] | RSU's [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting term | 4 years | |||||||
Minimum [Member] | Performance Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognition period of stock based compensation expense | 2 years | |||||||
Percentage of estimated probability of goal achieved | 96% | |||||||
Minimum [Member] | Performance Stock Units [Member] | CEO [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Targeted number of shares granted ratio | 0% | |||||||
Minimum [Member] | Performance Stock Units [Member] | Member of Management Team [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Targeted number of shares granted ratio | 0% | 0% | 0% | |||||
Minimum [Member] | RSU's [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting term | 3 years | |||||||
2007 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Additional awards authorized under plan | 0 | |||||||
2014 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for future issuance | 1,854,166 | |||||||
Plan modification description | The number of shares initially reserved for issuance under the 2014 Plan is subject to increase by (i) the number of shares represented by awards outstanding under the 2007 Plan that are forfeited or lapse unexercised and which following the pricing date are not issued under the 2007 Plan, and (ii) an annual increase on January 1 of each year. | |||||||
2014 Plan [Member] | ISO [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shareholder granted option | 10% | |||||||
2014 Plan [Member] | NSO [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shareholder granted option | 10% | |||||||
2014 Plan [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting term | 4 years | |||||||
2014 Plan [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options expiration period | 10 years | |||||||
Option purchase price, percentage of fair value | 110% | |||||||
2014 Plan [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Option purchase price, percentage of fair value | 100% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Shares Available for Grant (Detail) - Employee Stock Option, RSUs and PSUs [Member] - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Available for Grant, Beginning balances | 6,394,920 | 5,732,295 | 4,600,181 |
Shares Available for Grant, Additional shares reserved | 1,820,820 | 1,401,066 | 1,383,322 |
Shares Available for Grant, Allowance for PSU for over performance | (270,820) | 158,360 | (24,830) |
Shares Available for Grant, Shares forfeited for tax | 177,036 | 137,638 | 58,787 |
Shares Available for Grant, Options and other than options granted | (2,319,700) | (1,264,636) | (425,266) |
Shares Available for Grant, Options and other than options forfeited or cancelled | 504,042 | 230,197 | 140,101 |
Shares Available for Grant, Ending balances | 6,306,298 | 6,394,920 | 5,732,295 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Activity under Stock Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract] | ||||
Number of Options, Outstanding Beginning balances | 606,785 | 700,654 | 813,150 | |
Number of Options, Options exercised | (83,058) | (26,091) | (90,582) | |
Number of Options, Options cancelled | (137,209) | (67,778) | (21,914) | |
Number of Options, Outstanding Ending balances | 386,518 | 606,785 | 700,654 | 813,150 |
Number of Options, Options exercisable | 386,518 | |||
Number of Options, Options vested, exercisable or expected to vest | 386,518 | |||
Weighted Average Exercise Price, Beginning balances | $ 53.98 | $ 55.93 | $ 54.69 | |
Weighted Average Exercise Price, Options exercised | 17.52 | 46.1 | 47.82 | |
Weighted Average Exercise Price, Options cancelled | 60.54 | 77.14 | 43.52 | |
Weighted Average Exercise Price, Ending balances | 59.48 | $ 53.98 | $ 55.93 | $ 54.69 |
Weighted Average Exercise Price, Options exercisable | 59.48 | |||
Weighted Average Exercise Price, Options vested, exercisable or expected to vest | $ 59.48 | |||
Options Outstanding, Weighted-Average Remaining Contractual Term | 3 years 1 month 6 days | 4 years 3 months 18 days | 4 years 9 months 18 days | 5 years 10 months 24 days |
Options exercisable, Weighted-Average Remaining Contractual Term | 3 years 1 month 6 days | |||
Options vested, exercisable or expected to vest, Weighted Average Remaining Contractual Term | 3 years 1 month 6 days | |||
Options Outstanding, Aggregate Intrinsic Value | $ 87 | $ 2,379 | $ 18,287 | $ 96,286 |
Options exercised, Aggregate Intrinsic Value | 1,482 | $ 386 | $ 6,948 | |
Options exercisable, Aggregate Intrinsic Value | 87 | |||
Options vested, exercisable or expected to vest, Aggregate Intrinsic Value | $ 87 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Options Outstanding and Vested Under Stock Plans by Exercise Price (Detail) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
$3.60 - $38.79 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | $ 3.6 |
Options Outstanding, Exercise Price Upper Range Limit | $ 38.79 |
Number of Options Outstanding | shares | 41,651 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 1 year 9 months 25 days |
Options Outstanding, Weighted Average Exercise Price | $ 26.58 |
Options Vested, Number Exercisable | shares | 41,651 |
Options Vested, Weighted Average Exercise Price | $ 26.58 |
$42.30 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price | $ 42.3 |
Number of Options Outstanding | shares | 72,230 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 4 years 10 months 28 days |
Options Outstanding, Weighted Average Exercise Price | $ 42.30 |
Options Vested, Number Exercisable | shares | 72,230 |
Options Vested, Weighted Average Exercise Price | $ 42.30 |
$43.79 - $60.60 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 43.79 |
Options Outstanding, Exercise Price Upper Range Limit | $ 60.6 |
Number of Options Outstanding | shares | 40,409 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 1 year 11 months 19 days |
Options Outstanding, Weighted Average Exercise Price | $ 49.66 |
Options Vested, Number Exercisable | shares | 40,409 |
Options Vested, Weighted Average Exercise Price | $ 49.66 |
$63.23 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price | $ 63.23 |
Number of Options Outstanding | shares | 86,361 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 1 year 11 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $ 63.23 |
Options Vested, Number Exercisable | shares | 86,361 |
Options Vested, Weighted Average Exercise Price | $ 63.23 |
$63.39 - $76.81 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 63.39 |
Options Outstanding, Exercise Price Upper Range Limit | $ 76.81 |
Number of Options Outstanding | shares | 100,467 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 3 years 10 months 20 days |
Options Outstanding, Weighted Average Exercise Price | $ 71.57 |
Options Vested, Number Exercisable | shares | 100,467 |
Options Vested, Weighted Average Exercise Price | $ 71.57 |
$86.90 - $97.52 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 86.9 |
Options Outstanding, Exercise Price Upper Range Limit | $ 97.52 |
Number of Options Outstanding | shares | 45,400 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 2 years 11 months 4 days |
Options Outstanding, Weighted Average Exercise Price | $ 91.90 |
Options Vested, Number Exercisable | shares | 45,400 |
Options Vested, Weighted Average Exercise Price | $ 91.90 |
$3.60 - $97.52 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 3.6 |
Options Outstanding, Exercise Price Upper Range Limit | $ 97.52 |
Number of Options Outstanding | shares | 386,518 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 3 years 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price | $ 59.48 |
Options Vested, Number Exercisable | shares | 386,518 |
Options Vested, Weighted Average Exercise Price | $ 59.48 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Restricted Stock Units Under Stock Plan (Detail) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Restricted Stock Units, Outstanding Beginning Balance | 1,153,863 | 763,806 | 852,977 | |
Number of Restricted Stock Units, Restricted stock granted | 1,948,825 | 835,361 | 368,230 | |
Number of Restricted Stock Units, Restricted stock released | (687,119) | (327,297) | (346,602) | |
Number of Restricted Stock Units, Restricted stock cancelled | (230,029) | (118,007) | (110,799) | |
Number of Restricted Stock Units, Outstanding Ending Balance | 2,185,540 | 1,153,863 | 763,806 | |
Number of Restricted Stock Units, Restricted stock expected to vest | 2,010,850 | |||
Weighted Average Grant Date Fair Value Outstanding, Beginning Balance | $ 83.13 | $ 110.96 | $ 79.87 | |
Weighted Average Grant Date Fair Value, Granted | 28.12 | 63.7 | 146.64 | |
Weighted Average Grant Date Fair Value, Released | 74.26 | 94.24 | 76.26 | |
Weighted Average Grant Date Fair Value, Cancelled | 58.53 | 94.99 | 98.76 | |
Weighted Average Grant Date Fair Value Outstanding, Ending Balance | 39.45 | $ 83.13 | $ 110.96 | |
Weighted Average Grant Date Fair Value, Restricted stock expected to vest | $ 39.89 | |||
Aggregate Intrinsic Value Outstanding | $ 47,033 | $ 45,693 | $ 61,922 | $ 147,650 |
Aggregate Intrinsic Value, Released | 3 | $ 1,351 | $ 22,902 | |
Aggregate Intrinsic Value, Expected to vest | $ 43,273 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Performance Stock Units Under Stock Plan (Detail) - Performance Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Restricted Stock Units, Outstanding Beginning Balance | 485,904 | 248,685 | 199,037 | |
Number of Restricted Stock Units, PSU granted | 370,875 | 392,742 | 57,036 | |
Number of Restricted Stock Units, PSU From Overachievement Granted | 36,533 | |||
Number of Restricted Stock Units, PSU released | (147,644) | |||
Number of Restricted Stock Units, PSU cancelled | (136,804) | (44,412) | (7,388) | |
Number of Restricted Stock Units, Outstanding Ending Balance | 719,975 | 485,904 | 248,685 | |
Number of Restricted Stock Units, PSU expected to vest | 572,485 | |||
Weighted Average Grant Date Fair Value Outstanding, Beginning Balance | $ 74.22 | $ 113.35 | $ 94.2 | |
Weighted Average Grant Date Fair Value, PSU Granted | 37.64 | 53.64 | 183.2 | |
Weighted Average Grant Date Fair Value, PSU Granted From Overachievement | 67.29 | |||
Weighted Average Grant Date Fair Value, PSU Released | 67.29 | |||
Weighted Average Grant Date Fair Value, PSU Cancelled | 110.86 | 128.64 | 136.77 | |
Weighted Average Grant Date Fair Value Outstanding, Ending Balance | 48.41 | $ 74.22 | $ 113.35 | |
Weighted Average Grant Date Fair Value, PSU expected to vest | $ 50.93 | |||
Aggregate Intrinsic Value PSU Outstanding | $ 15,494 | $ 19,242 | $ 20,161 | $ 34,453 |
Aggregate Intrinsic Value, PSU Released | $ 3,294 | |||
Aggregate Intrinsic Value, PSU Expected to vest | $ 12,320 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Employee Stock Purchase Plan Activity (Detail) - ESPP [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional awards authorized under plan | 0 | 0 | 235,590 |
Shares issued | 247,826 | 130,459 | 65,197 |
Shares available for future issuance | 1,189,229 | 1,437,055 | 1,567,514 |
Employee contributions for shares issued | $ 5,086 | $ 5,191 | $ 6,849 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options Using Black-Scholes Option Valuation Model (Detail) - ESPP [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Expected volatility, minimum | 56% | 63% | 36% |
Expected volatility, maximum | 57% | 72% | 49% |
Risk-free interest rate | 0.10% | ||
Risk-free interest rate, minimum | 5.30% | 1.50% | |
Risk-free interest rate, maximum | 5.40% | 4.50% | |
Dividend Yield | 0% | 0% | 0% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Fair Value of Performance Based RUSs based on Monte Carlo Simulation Model (Detail) - Performance Stock Units [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Index volatility | 54% | ||
Correlation with index | 0.33% | ||
Dividend Yield | 0% | 0% | 0% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Index volatility | 45% | 51% | |
Company volatility | 58% | 53% | 49% |
Risk-free interest rate | 4.10% | 1.30% | 0.10% |
Correlation with index | 0.37% | 0.32% | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Index volatility | 47% | 53% | |
Company volatility | 62% | 54% | 54% |
Risk-free interest rate | 5% | 1.70% | 0.30% |
Correlation with index | 0.38% | 0.35% |
Stock-Based Compensation - Su_7
Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Line Items in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 56,865 | $ 56,798 | $ 44,365 |
Cost of Revenue [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 2,490 | 2,404 | 1,637 |
Research and Development [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 9,856 | 8,680 | 6,455 |
Selling, General and Administrative [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 44,519 | $ 45,714 | $ 36,273 |
Stock-Based Compensation - Su_8
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 56,865 | $ 56,798 | $ 44,365 |
Stock Options [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 539 | 2,056 | 2,997 |
Restricted Stock Units [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 44,838 | 37,496 | 29,234 |
Performance Stock Units [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 9,429 | 15,207 | 10,017 |
Employee Stock Purchase Plan [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 2,059 | $ 2,039 | $ 2,117 |
Stock-Based Compensation - Su_9
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 56,865 | $ 56,798 | $ 44,365 |
Stock-Based Compensation - S_10
Stock-Based Compensation - Summary of Stock-Based Compensation Expense Not Yet Recognized (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 63,384 |
Weighted-Average Amortization Period (in years) | 2 years 1 month 6 days |
Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 9,711 |
Weighted-Average Amortization Period (in years) | 1 year 2 months 12 days |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 755 |
Weighted-Average Amortization Period (in years) | 4 months 24 days |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of PSU Grant Activity (Details) - Performance Stock Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares | 370,875 | 392,742 | 57,036 |
Weighted Average Fair Value | $ 37.64 | $ 53.64 | $ 183.2 |
Total Shareholder Return [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares | 185,424 | 71,364 | 57,036 |
Weighted Average Fair Value | $ 43.89 | $ 105.12 | $ 183.2 |
Revenue Targets [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares | 185,451 | 71,378 | 0 |
Weighted Average Fair Value | $ 31.39 | $ 70.76 | $ 0 |
Stock Price Performance [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares | 0 | 250,000 | 0 |
Weighted Average Fair Value | $ 0 | $ 34.05 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income/(Loss) before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (100,501) | $ 2,185 | $ (129,135) |
Foreign | 2,642 | 2,079 | (1,691) |
Income (loss) before income taxes | $ (97,859) | $ 4,264 | $ (130,826) |
Income Taxes - Components of Ex
Income Taxes - Components of Expense/(Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
State | $ 424 | $ 363 | $ 244 |
Foreign | 835 | 809 | 585 |
Total current income tax expense / (benefit) | 1,259 | 1,172 | 829 |
Deferred: | |||
Federal | (5,774) | ||
State | (991) | ||
Foreign | (140) | 91 | (295) |
Total deferred income tax expense / (benefit) | (6,905) | 91 | (295) |
Total income tax expense / (benefit) | $ (5,646) | $ 1,263 | $ 534 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense by Applying Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | 21% | 21% | 21% |
State tax, net of federal benefit | (0.40%) | 6.70% | (0.20%) |
Foreign rate differential | (0.70%) | 14.80% | (0.40%) |
Tax credits | 1.20% | (0.90%) | 3% |
Stock-based compensation | (8.30%) | 110.70% | (0.20%) |
Change in valuation allowance | 3.20% | (140.10%) | (23.30%) |
Release of valuation allowance | (6.80%) | 0% | 0% |
Warrant remeasurement | (1.70%) | 0% | 0% |
Other permanent differences | (1.20%) | 22.50% | (0.40%) |
Other | (0.60%) | (5.10%) | 0.10% |
Total | 5.70% | 29.60% | (0.40%) |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences and Carryforwards That Give Rise to Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 142,332 | $ 138,583 |
Tax credits | 28,778 | 25,675 |
Depreciation | 1,011 | 652 |
Stock-based compensation | 5,604 | 7,478 |
Accruals and reserves | 11,703 | 12,326 |
Right of use asset | 1,945 | 3,165 |
R&D capitalization | 21,275 | 10,228 |
Bond hedge | 3,827 | 6,593 |
Other | (392) | 214 |
Gross deferred tax assets | 216,083 | 204,914 |
Valuation allowance | (206,327) | (200,977) |
Deferred tax assets | 9,756 | 3,937 |
Lease liabilities | (1,642) | (2,695) |
Intangibles | (6,734) | |
Deferred tax liabilities | (8,376) | (2,695) |
Net deferred tax assets | $ 1,380 | $ 1,242 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||||
Increase (decrease) in valuation allowance | $ 5,400 | $ (100) | $ 36,800 | ||
Unrecognized tax benefits | 11,872 | 10,723 | 10,430 | $ 8,220 | |
Accrued interest and penalties | 200 | $ 200 | $ 200 | ||
Research and Development Credit Carryforwards [Member] | California state [Member] | |||||
Income Taxes [Line Items] | |||||
Tax credit carry forwards | 17,900 | ||||
Federal [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforward | $ 543,200 | $ 344,100 | |||
Net operating loss expiration date | 2032 | ||||
Federal [Member] | Research and Development Credit Carryforwards [Member] | |||||
Income Taxes [Line Items] | |||||
Tax credit carry forwards | $ 22,100 | ||||
State and Local Jurisdiction [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforward | 337,100 | ||||
Net operating loss carryforward indefinitely | $ 82,200 | ||||
Net operating loss expiration date | 2024 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 10,723 | $ 10,430 | $ 8,220 |
Increases related to current year tax provisions | 1,011 | 956 | 1,412 |
Increases related to prior year tax provisions | 229 | 860 | |
Decreases related to prior year tax provisions | (91) | (663) | (62) |
Ending balance | $ 11,872 | $ 10,723 | $ 10,430 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income (loss) used in basic net income (loss) per common share | $ (92,213) | $ 3,001 | $ (131,360) |
Net income (loss) used in diluted net income (loss) per common share | $ (92,213) | $ 3,001 | $ (131,360) |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Weighted Average Shares used in Computing Basic and Diluted Net Income (Loss) Per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Weighted average shares used to compute basic net income (loss) per share | 35,981,431 | 35,317,644 | 34,823,258 |
Plus effect of dilutive securities: | |||
Stock-based awards from employee equity plans | 207,611 | ||
Weighted average shares used to compute diluted net income (loss) per share | 35,981,431 | 35,525,255 | 34,823,258 |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Net Income (Loss) Per Common Share Basic and Diluted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income (loss) per share, Basic | $ (2.56) | $ 0.08 | $ (3.77) |
Net income (loss) per share, Diluted | $ (2.56) | $ 0.08 | $ (3.77) |
Net Income (Loss) Per Share -_3
Net Income (Loss) Per Share - Computation of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 8,049,183 | 5,008,471 | 5,327,427 |
Stock-based Awards From Employee Equity Plans [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 3,292,033 | 1,394,189 | 1,713,145 |
Convertible Senior Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 362,267 | 1,807,141 | 1,807,141 |
Warrants Related to the Issuance of Convertible Senior Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 1,807,141 | 1,807,141 | 1,807,141 |
Warrants Related Term Debt [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 2,587,742 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Expense for matching contributions | $ 3.6 | $ 3.6 | $ 2.9 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 06, 2024 Employee | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Subsequent Event [Line Items] | |||||
Operating expenses | $ 389,368 | $ 270,203 | $ 376,976 | ||
Forecast [Member] | Maximum [Member] | Contract Termination [Member] | |||||
Subsequent Event [Line Items] | |||||
Restructuring charge, consisting of one-time severance and other termination benefit costs | $ 6,000 | ||||
Forecast [Member] | Minimum [Member] | One-time Termination Benefits [Member] | |||||
Subsequent Event [Line Items] | |||||
Restructuring charge, consisting of one-time severance and other termination benefit costs | $ 5,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of employees included in laying off | employee | Employee | 63 | ||||
Restructuring and related cost, Percentage of positions laying off | 5% |